PAYE tax ???

plumbbobshan

Hi, this is my 1st post so be gentle :rotfl:
I started a salary paid weekly job in oct 2012, and every week since my pay slip shows PAYE Tax as £0.00 . My NI is around £50.00. per week . I'am lucky that i dont have to use my wages so its all in the bank for when it has to be paid back .

1.Why do i not pay tax ???
2. Who do i contact to sort this out ?

gb12345

plumbbobshan wrote: »

Hi, this is my 1st post so be gentle :rotfl:
I started a salary paid weekly job in oct 2012, and every week since my pay slip shows PAYE Tax as £0.00 . My NI is around £50.00. per week . I'am lucky that i dont have to use my wages so its all in the bank for when it has to be paid back .

1.Why do i not pay tax ???
2. Who do i contact to sort this out ?

1. Your salary is below the personal allowance, so you've not been taxed would be my guess.

2. You employer's HR department or whoever does the payroll is probably a good place to start.

Bmth100

plumbbobshan wrote: »

Hi, this is my 1st post so be gentle :rotfl:
I started a salary paid weekly job in oct 2012, and every week since my pay slip shows PAYE Tax as £0.00 . My NI is around £50.00. per week . I'am lucky that i dont have to use my wages so its all in the bank for when it has to be paid back .

1.Why do i not pay tax ???
2. Who do i contact to sort this out ?

Hi there, either one of two things. It could be that the poster above is right, and you're not earning enough to be taxed. The other option depends - is this your first job since 05th April 2012, or has there been a period in that time where you have not worked?

You get around £8105 tax-free allowance yearly, which is worked out on a weekly basis (a certain amount per week untaxable - I think around £150). This was roughly correct last time I checked but it might have changed. If you didn't work for 8 weeks, you would still accumulate that tax-free income, so you might not get taxed straight away until you've used it up.

This was a nice surprise when I worked a summer job as a Uni student a couple of years ago. Didn't work from April til July then earned a good £500 a week untouched by the taxman

zzzLazyDaisy

plumbbobshan wrote: »

My NI is around £50.00. per week . I'am lucky that i dont have to use my wages so its all in the bank for when it has to be paid back .

1.Why do i not pay tax ???
2. Who do i contact to sort this out ?

If you are paying national insurance contributions of £50 per week, that puts your gross earnings at roughly £450 per week (give or take)

Even if this is your first job this tax year, you are still going to earn over the personal allowance between when you started in october 2012 and april 5th 2013. So you should speak to your employer and find out why tax is not being deducted, as you will end up owing tax.

Just a thought, have you had a tax code notification from HMRC this tax year?

gb12345

Just noticed the amount of NI you say you are paying per week.

The threshold for NI is £139 per week and above that (up to UEL) the Class 1 NI rate is 12%. Based on that I would estimate you are earning about £500 per week, which would be above the weekly tax free allowance.

Even with bmth's second option that you had a gap in employment, you would still be earning over the personal allowance this tax year, so something doesn't look right.

Definitely a good idea to speak to your employer.

sonicetomeetyou

I would imagine that you will start getting taxed when you have earned past the £8100 mark. So if since you started your job you have earned £7000 then within your next couple of pays tax will be taken. I would also double check what your tax code is, just in case it's wrong and you end up owing tax.

chrisbur

Most of the posts above are mis-understanding how the tax allowance system works. You have £8105 allowance for the full year but this is given to you bit by bit during the year. So if you are paid weekly you 1/52 of this for your earnings for week 1, 2/52 of it for your earnings up to week 2, 3/52 of it for your earnings up to week 3 and so on. So look at your payslip and check your tax code, whatever it is put a five on the end so if as is probable it is 810L then you have £8105. Next check that it is a cumulative code, usually shown after the tax code. Assuming that it is cumulative divide the tax allowance that is the tax code with a 5 added by 52 and multiply that by the week number on your payslip. If your total earnings to date this year are lower than this figure then you should not be paying tax, if they are higher than this figure then you should be paying tax.

If you are still unsure then put the following details up for checking, total gross to date (all employments if you have had others since 6 April) week number, tax code and the basis that follows it.

Fluffy66

I really think you need to check your Tax Code.

If you had no previous employment, and therefore, no P45 received from a previous employer to pass on to the new one then your current employer should have given you a P46 form to complete. There are options on there to choose from, i.e. if it's your first job since 6th April and you have not received any allowances, for example Jobseekers; second option is whether it is your only job but you have had another since the 6th April, or received other allowances; and lastly, whether you have another job. This should then be returned to your current employer who will, in turn, pass the details to HMRC - they can then produce a correct tax coding for you.

If you're paying that amount of N.I. then I'm guessing you should also be paying tax. If you were not in possession of a previous P45 and have not completed a P46 form then, really, you should be on a 810L W1 (week one) basis and not cumulative. You should be able to see this on your payslip(s).

Get this checked out as soon as possible with your current employer otherwise you may get hit with a tax bill. Better to face it now rather than worry for the next couple of months.

Hope this helps.

chrisbur

Fluffy66 wrote: »

If you're paying that amount of N.I. then I'm guessing you should also be paying tax. If you were not in possession of a previous P45 and have not completed a P46 form then, really, you should be on a 810L W1 (week one) basis and not cumulative.

With no P45 and no P46 completed the correct tax code would be 0T week 1 not 810L week 1. Assuming that a P46 has been completed then depending on what is filled in the tax code to be used could be 810L week 1, 810L cumulative or BR.

plumbbobshan

Firstly thanks for all the replys.
I understand some of the replys but some have me baffled. Here is a bit more info ;
I have worked all the time and only had 3 weeks off between jobs ,my leaving tax payment from my last job was £1687.00 week 31 and tax code of 747L
My first pay slip from new empolyer was week 35 and tax code of 810L.
My wage is £580 per week salary.
I handed new employer my P45 before i started.
i have never had any letters for the HMCR.
I will be in the office tomorrow but getting to see anybody is a different ball game :rotfl:
cheers

chrisbur

plumbbobshan wrote: »

Firstly thanks for all the replys.
I understand some of the replys but some have me baffled. Here is a bit more info ;
I have worked all the time and only had 3 weeks off between jobs ,my leaving tax payment from my last job was £1687.00 week 31 and tax code of 747L
My first pay slip from new empolyer was week 35 and tax code of 810L.
My wage is £580 per week salary.
I handed new employer my P45 before i started.
i have never had any letters for the HMCR.
I will be in the office tomorrow but getting to see anybody is a different ball game :rotfl:
cheers

Your new employer does not appear to be using your P45 figures.

The tax code from your last job appears to be the usual allowance for 2011/2012 do you know why it is lower than expected for 2012/2013?

When you started did your new employer get you to complete a P46 and if so what section did you select A or B?

Can you give the full details from your P45 and from your last payslip including anything after your tax code and anything showing as previous apy or tax?