Income tax re-adjustmed over the year?

JordanBWilliams

Hi all

This is my first post so I am hope I have put this in the right place.

I have a question regarding income tax -

I recently started a new job in June, but my employers HR department took some time in setting up my pay, so long story short I got 2.5 months worth of pay lumped into one paycheck, which for just that month took me into the 40% tax band.

Will my income tax re adjust itself in the following month or will I have to wait till the end of the tax year to claim it back as I am unlikely to go into the 40% band over the full year.

thanks for your help in advance

Jordan

patanne

Yes it should adjust over the next few months UNLESS your tax code has month 1 after it.

CLAPTON

what is your taxcode (including any letters/numbers after it)

agrinnall

There is a small possibility that you may have paid an incorrect amount of NI, if you provide the figures it should be easy enough to decide whether that is the case or not.

JordanBWilliams

My tax code is 944L

CLAPTON

a 944L code without anything like M1, wk1, nocum etc means your tax will automatically adjust before tax year end always
assuming your earnings for the April -june period are correctly recorded

JordanBWilliams

Brilliant, thanks eveyone. That's good news!

chrisbur

If you paid 40% tax on your first payment from your new employer then either your earnings are high enough to be paying 40% tax in which case there will be no adjustment unless your future earnings are lower than your average earnings so far or your are being taxed on a month 1 code in which case no adjustment until it is sorted.

Also as agrinnall said are you sure that your NI was deducted correctly, there is a special rule for cases like this and that rule is not always used.