1000L Tax Code Split

Miroslav

So, I have a 1000L Tax Code, but now it's been split into half.

At one of my jobs I have been paid and I have had tax taken.

At my 500L job, Payroll say that it's not £5000 per year that I can earn, but it is divided by 12 and Payroll say I can earn 416.67 per month tax free but I get taxed on more.

Is this right?


If I went over the 416.67 pm tax free, say two or three times a year and the other 9 or 10 I didn't and my total earnings for the year was under £5000, would I then be refunded at the end of the year despite being over the limit some months but under for the others, as I won't have gone over the 5000 limit for the year?

Thanks

jem16

Miroslav wrote: »

So, I have a 1000L Tax Code, but now it's been split into half.

At one of my jobs I have been paid and I have had tax taken.

At my 500L job, Payroll say that it's not £5000 per year that I can earn, but it is divided by 12 and Payroll say I can earn 416.67 per month tax free but I get taxed on more.

Is this right?

Yes it's correct. You have a yearly allowance which is split into 12.

If I went over the 416.67 pm tax free, say two or three times a year and the other 9 or 10 I didn't and my total earnings for the year was under £5000, would I then be refunded at the end of the year despite being over the limit some months but under for the others, as I won't have gone over the 5000 limit for the year?

Thanks

Tax is looked at each month but also looks back at what you have paid and recalculates each month. provided you are on a cumulative tax code ( ie no Mth1 suffix ) your tax will be correct at the end of the tax year.

Miroslav

jem16 wrote: »

Yes it's correct. You have a yearly allowance which is split into 12.




Tax is looked at each month but also looks back at what you have paid and recalculates each month. provided you are on a cumulative tax code ( ie no Mth1 suffix ) your tax will be correct at the end of the tax year.

Excellent, thank you.

That makes sense, I just didn't understand it properly and it explains why in November and December when I earnt a lot more I wasn't taxed as I had earnt less in previous months.

Thanks.