New Job tax code / Emergency tax

Mart34

Hi guys.

I recently started a new job.after leaving my last position. Upon starting my new job I had not received my p45 so was unable to hand it to the new employer on my 23rd Nov start date. I actually handed it in after eventually receiving it last week. (2nd Dec)

When I received my 1st pay slip (weekly paid) my tax code was 1060L which I understand means I can earn £10,600 before being taxed. In my following weeks wage slip (received today) my tax code is 1066L (earn £10,666, before tax)

Here's my question, when my code was 1060L I paid approx £30 tax, the following week, when my tax code is 1066L I have paid £79, same hours worked. There was a gap of a week between leaving my last job to starting my new one. Have I paid tax for the week I was 'unemployed' or has their been a !!!! up

McKneff

You don't actually earn 10,600 before you start paying tax. This amount is divided by 52 and the product of that sum you are able to earn each week and not pay tax on, over that then you pay tax on that amount.


Also, if you have a week not working, you haven't taken up that weekly 'allowance' of not paying tax so it is carried forward to the next week so you get a double allowance before you pay tax.

McKneff

each week you can earn £203 before paying any tax.


I week no wages so tax allowance istn used.


Following week you can earn 406 before paying any tax


If you only earn say 400 you wont pay tax and the £6 would be tagged onto the following weeks alloance, ie 203 plus last weeks £6
So you could earn 209 before paying any tax

Mart34

McKneff wrote: »

Also, if you have a week not working, you haven't taken up that weekly 'allowance' of not paying tax so it is carried forward to the next week so you get a double allowance before you pay tax.

Not sure I understand what you mean, sorry. I'm no expert when it comes to tax. Does that mean I've paid too much tax this week or I've had to pay for the week I wasn't working.

Mart34

ah ok, I get you now, will call into my wages dept tomorrow and find out whats going on.

McKneff

Your tax code should be the normal 1060.


No idea why you would have all them sixes......


It sounds like the week you paid 30 quid is the week that you have had the 2 week allowances and that your normal tax has gone to the normal 70 odd. so more money in your pocket the first week.

chrisbur

Mart34 wrote: »

Hi guys.

I recently started a new job.after leaving my last position. Upon starting my new job I had not received my p45 so was unable to hand it to the new employer on my 23rd Nov start date. I actually handed it in after eventually receiving it last week. (2nd Dec)

When I received my 1st pay slip (weekly paid) my tax code was 1060L which I understand means I can earn £10,600 before being taxed. In my following weeks wage slip (received today) my tax code is 1066L (earn £10,666, before tax)

Here's my question, when my code was 1060L I paid approx £30 tax, the following week, when my tax code is 1066L I have paid £79, same hours worked. There was a gap of a week between leaving my last job to starting my new one. Have I paid tax for the week I was 'unemployed' or has their been a !!!! up

This looks like your old and new employments may have had an overlap of tax weeks. Your last payment from old employer falling in same tax week as first payment with new employer and both giving you a tax allowance, old employer still using your tax code and new employer using emergency tax code. This resulted in you under-paying tax and this was then corrected when your P45 was applied the second week.
To be certain will need more details.
From your P45 everything in sections 6, 7 and 8.
From your two payslips taxable gross, tax paid, tax code/basis (basis usually follows code), week number, taxable gross to date and tax paid to date.

Regarding your tax code sounds like you get a laundry allowance, if so does this still apply in your new job?

Mart34

chrisbur wrote: »

This looks like your old and new employments may have had an overlap of tax weeks. Your last payment from old employer falling in same tax week as first payment with new employer and both giving you a tax allowance, old employer still using your tax code and new employer using emergency tax code. This resulted in you under-paying tax and this was then corrected when your P45 was applied the second week.
To be certain will need more details.
From your P45 everything in sections 6, 7 and 8.
From your two payslips taxable gross, tax paid, tax code/basis (basis usually follows code), week number, taxable gross to date and tax paid to date.

Regarding your tax code sounds like you get a laundry allowance, if so does this still apply in your new job?

Hi, I was about to call the tax office, but checked this post first your reply has saved me a call. I was paid my last and final wage from previous employer the day before my 1st wage from my new job, yes the laundry allowance does still apply

Thanks everyone for your advice and assistance.

McKneff

Youre welcome and glad you got it sorted x


Annie