Paid more than I expected in wage packet (due to paying less tax)

MikeNFFC_2

Hello folks. I expect this one comes up fairly often on here but wondered if you could help me please. I have recently started working for a new company after being out of work since the end of April. I received my wage slip today and I have been paid about £500 more than I expected, due to being taxed very little. Tax amount taken for the month is £114. I expect this is simply due to the fact I haven't earnt any money since April so it is some sort of tax break/rebate - that has been automatically worked out? The extra money is a nice surprise and very much needed, but I just want to make sure I am not going to get a tax bill at a later date...can anyone confirm I am correct in my thoughts? Thanks.

xylophone

Presumably you were signing on and received your JSA for three months - you then submitted your P45 stamped by the job centre to the new employer - this will have shown what you received to date. (Around £850 presumably?)

You will have been coded for the year (probably 810L) - this means that you can earn up to this amount tax free - this allowance is normally spread over the 12 months of the tax year. There are only seven salary months left of this tax year - your total JSA would barely amount to a month's normal salary.

This is probably the explanation?

MikeNFFC_2

Thanks for the reply. I didn't sign on during that time. The tax code on my pay slp is 807L/0 - I have searched for that code but can't seem to find what that means. My P45 was handed in to my new employer. Thanks again.

MikeNFFC_2

Finally managed to get through to HMRC after lots of waiting - they tell me all correct, so happy days. Cheers :beer:

CLAPTON

Was you P45 issued after 6th April 2012? if not it is now no use

Did you fill in a P46?


What were your figures
gross earning, tax paid, NI

xylophone

happy days

Absolutely! Congratulations on getting the new job in these difficult times!:T

chrisbur

On a tax code of 810L as at month 5 of the tax year you can earn about m£3378 before tax is due. If you add your salary just paid to your total gross from your old employment then take away £3378 this is the amount you are due to pay tax on at the moment. Divide this figure by 5 and deduct any tax paid in your old employment what is left (give or take a pound or two) should be what you paid in tax this month.
You may notice that your tax for a while is a little bit lower than you expected as from the figures you gave it suggests that you were in the 40% band, and it will take a while, possibly not till next tax year, before you are back into that band. Hard to say exactly when without full figures.