Personal Allowance question

Britta_Ekland

Hi

Very hard to find answers to this. I anyone could help?

Facts:

Not earned anything in this current tax year and started new contract on 10th Sep which terminates end of Dec

How is my unused personal allowance reflected in my first pay. Will I be taxed at all? My code I assume will be 1060L. Earn £300 per day

Any info gratefully received

madgagoo

Assuming you will be paid monthly (at the end of September) and you have completed the new starter checklist correctly then the first £5,300 of pay will be free of tax.

It will then work cumulatively in October, November and December by which time you will have had £8,833 of your allowance.

Depending on how many days you work and if you receive any more taxable income between January and April, you may well overpay tax. So look into claiming it back!

CLAPTON

Britta_Ekland wrote: »

Hi

Very hard to find answers to this. I anyone could help?

Facts:

Not earned anything in this current tax year and started new contract on 10th Sep which terminates end of Dec

How is my unused personal allowance reflected in my first pay. Will I be taxed at all? My code I assume will be 1060L. Earn £300 per day

Any info gratefully received

have you claimed any taxable benefits this tax year (JSA )

Britta_Ekland

hi thanks for replying! will work everyday - and receive no other benefits etc. Won't be working jan, - april next year as baby due.

Britta_Ekland

blondebubbles wrote: »

Do you actually mean you will work every day as in 7 days a week?

Or do you mean you'll work 5 days a week?

If you earn £300 per day for 5days per week that's £1500 per week. Over 16 weeks approx that's £24000 so over the personal allowance so tax would be due.

yes work 5 days a week - yes i understand i will eat up my personal allowance by end of contract but i was tryng to figure out how it would effect my first pay slip.

Britta_Ekland

thanks for the help!

agrinnall

Are you actually on PAYE? Most people on a contract rate of £300 a day would try to find a more tax efficient way of being paid, although as you're only contracting for a limited time perhaps you decided it wasn't worth the extra hassle.

Britta_Ekland

they have put me on PAYE yes.

chrisbur

If you will have no taxable income for Jan to April you can use a P50 to claim back overpaid tax for the full tax year as soon as you finish work.

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/PersonalTax_iForms/1.0/P50&template=P50.xdp

Britta_Ekland

Update:

I just got paid for 15 days work (sep 10th- sep 30th) and they took 1/3 off for tax as didn't have my tax code which left £3000

They said this will adjust in October pay which will include sep 30th - oct 31st minus the September pay £3000 but at this point what would I expect tax wise?

Thanks in advance

agrinnall

blondebubbles wrote: »

It would help if you could provide the actual figures.

What was the pay?
Tax deducted?
Tax code used?

Pay was £4500 (£300 per day * 15 days)
Tax was £1500 (one third deducted, confirmed by net pay figure of £3000).
Tax code not confirmed but the OP has assumed it will be 1060L.

Now you can do the maths.