Will I pay less tax than normal?

Burgerphone

Hi all,

At the end of September this year, I started a new job earning £20k gross per annum. Before that, I was working part time (since I was a student) only working 9 hours a week and earning about £250 a month (occasionally doing extra hours, but very rarely enough to pay income tax or NI).

What I was curious to know is, will I pay less income tax because i will only be earning 20k for the last few months of this financial year and not the entirety of it?

anamenottaken

Burgerphone wrote: »

Hi all,

At the end of September this year, I started a new job earning £20k gross per annum. Before that, I was working part time (since I was a student) only working 9 hours a week and earning about £250 a month (occasionally doing extra hours, but very rarely enough to pay income tax or NI).

What I was curious to know is, will I pay less income tax because i will only be earning 20k for the last few months of this financial year and not the entirety of it?

If you earned the full £20K in a year, you would pay more tax than if you earned £10K.

So, yes, you will pay less income tax because you will be earning at the rate of £20K in your new job but earning at that rate only for half of the 2014-15 tax year.

ElefantEd

You will earn about £11250 in the 2014-15 tax year (6 months @£250/month + 6 months at £10k), so will pay tax on the total. Assuming you have a normal personal tax allowance of £10k, in effect you will pay 20% of what's over that, ie about £250. Plus National Insurance. There are calculators online if you want to work it out exactly.

But yes, you won't be paying much tax this year!