HELP need advice please. I have not had tax deducted from my pay

VickyandChris

Hi,

I just recently got my first proper job after graduating in July. I started my new job a week into September.
I got my first payslip end of September. Tax Code is 1060L and I only paid 78 tax from 1300 earnings.. (I still paid NI and pension)

I just got my second payslip. same tax code. I had the 78 tax that I paid last month refunded and only paid NI and pension from 1650 earnings I only had 150 in NI and pension (roughly). How this be right? I got a letter from tax office to tell me what my tax code was and it is the same tax code that is on my payslip. Why am I not paying tax? Is it because I started this job half way through the year almost. It is not my first job that I have had this year. Whilst I was studying I had a min wage peanuts job where I earned 100pw if I was very lucky.

I am really worried that I am getting to get a massive tax bill sent to me Or do I need to catch up with tax free allowance before I get taxed normally (well at all) so confused!!

jayII

VickyandChris wrote: »

Hi,

I just recently got my first proper job after graduating in July. I started my new job a week into September.
I got my first payslip end of September. Tax Code is 1060L and I only paid 78 tax from 1300 earnings.. (I still paid NI and pension)

I just got my second payslip. same tax code. I had the 78 tax that I paid last month refunded and only paid NI and pension from 1650 earnings I only had 150 in NI and pension (roughly). How this be right? I got a letter from tax office to tell me what my tax code was and it is the same tax code that is on my payslip. Why am I not paying tax? Is it because I started this job half way through the year almost. It is not my first job that I have had this year. Whilst I was studying I had a min wage peanuts job where I earned 100pw if I was very lucky.

I am really worried that I am getting to get a massive tax bill sent to me Or do I need to catch up with tax free allowance before I get taxed normally (well at all) so confused!!

You probably won't go much over the tax-free threshold between now and April 5th when the new tax year starts, so HMRC are just doing things correctly. IIRC, the threshold is now £10,000.

Congratulations on your new job!

chrisbur

To check if your tax is being deducted correctly have a look at the taxable gross to date figure on your payslip, if this includes your earlier earnings while you were studying then all is correct.

The £78 tax in your first wage was deducted using the emergency tax code, HMRC would then have notified your employer of your tax code and any previous pay and tax and your tax position re-calculated for your second payment. This showed tax not due yet so the £78 was refunded to you.

For a quick calculation of when tax is due get your tax free allowance to date by multiplying £884 by the month number of your payslip and compare with your taxable pay to date on that payslip when taxable pay to date is under tax free allowance no tax when it goes over the tax free allowance you start paying tax.

dancingfairy

Your tax code seems 'normal' in that it is the most common one for this year and one that 99.9% of people will have (which is a good start).
It's probably that as we've been going through the year you've been getting a tax free allowance but haven't used much of it so far.
The tax allowance is about £884 a month so for October pay you would be up to over £6000 worth of tax free allowance and you may not have earned that much since April (or not much over it when you add all your work together).
I would guess your tax code is correct as it's not an unusual one. Generally the tax should sort itself out in the tax year.
Does your payslips show total money earned this tax year? Does it include your previous job's money on there?
If your salary was month 7 then the amount you'd have accumulated in tax free allowance so far would be £6188. Take how much you've earned in total this year. Is it above or below this amount? If it's above you should be paying tax at 20% on the amount above the £6188.
Next month you will get an additional allowance of £884 and again your salary people look at how much you've earnt so far in the tax year, work out whether you are ahead of behind the allowance and deduct 20% of the amount you are ahead of the allowance.
df