Paying tax after over 6 months of being on the dole?

bradztheman

A couple of people have told me that if your out of work and signing on for over 6 months, u don't have to pay tax for the first £9,000 you earn or something am I right?? if that is so, then why was I paying tax a few months ago when I went back to work?

LittleVoice

The personal (tax-free) allowance is for a year, it is apportioned over the full year not granted all at once. That is what has happened to your pay in previous years and there's no reason for it to be different just because you have been receiving JSA.

Whether you pay tax or not, depends on how much you have earned (including the JSA) and whether a new employer was given a P45.

Any

It is £9000 (and a bit) a YEAR. A tax year.
This is split into weekly or monthly amount depending how you get paid, so if you had no income first 6 months it will accumulate and then you will not pay tax until it catches up... (ie imagine you earn 20k. At some point you catch up with that tax free part for past running out, but lets say it will be in month 9 or 10-it will then start working so that you have some tax free every month and the rest you pay tax on)
HOWEVER, for the employer/accounts system to know you need to hand them in p45 from your past employer/job centre that tells them how much you earned that year so far.
Otherwise they will use emergency tax code to make sure you oay some tax, as you don't want to fall behind.
If you overpaid in a year, which can happen for number of reason, after the end of tax year you can ask HMRC for the tax back. Or after while they find out themself. This usually takes some time though.

agrinnall

Three important questions for you to answer.

1) Did you get a P45 from the Jobcentre and hand it to your employer when you started work?

2) What is the tax code on your payslip?

3) Have you received a P2 Coding Notice from HMRC and if so does the tax code on it match what your payslip says?

There may be more questions to come, but answer those first.

bradztheman

No, no, and no, and i dont have payslips i have cis remitance slips because im not employed, self employed. What shall i do? Phone the tax office??? If so on what number??

agrinnall

I'm going to struggle to help as I don't know CIS, but if you're self employed, why have you been paying tax at all, and who has been deducting it?

getmore4less

agrinnall wrote: »

I'm going to struggle to help as I don't know CIS, but if you're self employed, why have you been paying tax at all, and who has been deducting it?

http://www.hmrc.gov.uk/cis/

bradztheman

Im self employed, but im a sub contractor for a company so they deduct my tax. Its always been that way