Tax code 1000L

j1256

Hi there,

I'm on tax code 1000L and about to receive my first pay cheque of the new tax year.

My question is: Say I earn 70k/annum, does my payment for April (paid tomorrow) only deduct tax due for the year to date and does not deduct tax at 40% until I have cumulatively earned over the 40% threshold?

Many thanks

uknick

The payroll system will assume you are earning £70k per year, by extrapolating the month's pay, and deduct accordingly.

chrisbur

Assuming the code os 1000L is the normal tax free allowance then should be updated to 1060L this year.
You will pay some tax at 40% for month 1 you will get 1/12 of your tax free allowance and 1/12 of your 20% allowance and pay 40% on the rest.

CLAPTON

j1256 wrote: »

Hi there,

I'm on tax code 1000L and about to receive my first pay cheque of the new tax year.

My question is: Say I earn 70k/annum, does my payment for April (paid tomorrow) only deduct tax due for the year to date and does not deduct tax at 40% until I have cumulatively earned over the 40% threshold?

Many thanks

assuming no benefit in kind and you don't pay into a pension fund etc

then your tax for April will be something like this

salary 70,000/12 = 5833

tax free is 10600/12 = 883

so tax on 4950

the first 31785 /12 = 2648 at 20% = 529.75
and the rest at 40% i.e. 2302 at 40% = 920.80

so total tax = 1,450.55

plus of course you pay NI too