Tax on new job

aylithuk

Thanks guys. If he's got Gross Income of £1,778.33 before tax and if he is charged emergency tax would that mean he'll get after tax and NI £1285 ish

Sorry for a questions just trying to work out our bills for the end of the month or if i'll need to dip into our savings

chrisbur

aylithuk wrote: »

Thanks guys. If he's got Gross Income of £1,778.33 before tax and if he is charged emergency tax would that mean he'll get after tax and NI £1285 ish

Sorry for a questions just trying to work out our bills for the end of the month or if i'll need to dip into our savings

Looks about right to me assuming that you mean he will be taxed at BR not emergency. The P46 was allmost certainly completed to late to get an emergency tax code so the BR code (used if P46 not filled in by new employee with no P45)will proberbly be used.

Strictly the code should be 0T month 1 but comes to the same answer in this case.

aylithuk

Thanks Chris
Yep that's for BR tax but if it's emergency tax it would 40% taken off?

chrisbur

aylithuk wrote: »

Thanks Chris
Yep that's for BR tax but if it's emergency tax it would 40% taken off?

No definately not. Emergency tax for a monthly paid employee would give just over £675 from which no tax would be taken and earnings above that would then be taxed at 20% untill the 40% monthly equivalent band was reached. Emergency tax just gives the basic tax allowance that we all get. It is not some punishing tax rate that so many people believe it to be. Had your husband filled in a P46 in time and got onto emergency tax he would have paid about £135 less in tax on these earnings.