Taxed incorrectly?

JosephHale23

Hi, I'm not sure if I've been taxed properly, I could be wrong mind you!

My understanding is that as this is my first job after graduation (didn't earn anything in 14/15) I should earn up to 10,600 tax free, and only get taxed on what I earn over 10,600, before entering the new financial year.

I get paid in an odd way - I get paid on the third Friday of each month for the hours worked up until the second Friday. So this month I get paid on the 19th, and I get paid for 5 weeks work. This months pay takes me up to 10,359 since I started work in July 2015, and I've been taxed for the first time (126.80).

Am I right in thinking I shouldn't have been taxed this month, but rather get taxed next month when I will go over 10,600?

Any help appreciated, thanks.

CLAPTON

JosephHale23 wrote: »

Hi, I'm not sure if I've been taxed properly, I could be wrong mind you!

My understanding is that as this is my first job after graduation (didn't earn anything in 14/15) I should earn up to 10,600 tax free, and only get taxed on what I earn over 10,600, before entering the new financial year.

I get paid in an odd way - I get paid on the third Friday of each month for the hours worked up until the second Friday. So this month I get paid on the 19th, and I get paid for 5 weeks work. This months pay takes me up to 10,359 since I started work in July 2015, and I've been taxed for the first time (126.80).

Am I right in thinking I shouldn't have been taxed this month, but rather get taxed next month when I will go over 10,600?

Any help appreciated, thanks.

no,

the system works like this

although you can earn 10,600 in the full years before tax , they actually allocate the allowance on a monthly accumulative basis so that for people on a regular salary they take home the same each month

so the 10,600 is divided in 12 parts i.e. £833.33 per month

if you don't use any month's allowance it is carried over
a
so by january (10 months) you can earn 10 x 833.33 = 8333 before any tax
by febuary you can earn 9716 before tax is deducted


so you would be taxed on 10359 - 9716 = 642.4 at 20% = 128 approx

JosephHale23

Thanks for the explanation Clapton. Would I get this back in as a rebate? I'm likely to finish 15/16 with around 11,600

agrinnall

JosephHale23 wrote: »

Thanks for the explanation Clapton. Would I get this back in as a rebate? I'm likely to finish 15/16 with around 11,600

I doubt it, you'll be taxed in your next pay in March, probably a lower amount than you were this month, I'd expect the total for the year to be somewhere in the region of £200, which is what you should be taxed on earnings of £11,600 (£11,600 - £10,600 = £1,000 * 20% = £200).

CLAPTON

JosephHale23 wrote: »

Thanks for the explanation Clapton. Would I get this back in as a rebate? I'm likely to finish 15/16 with around 11,600

basically

if you have the correct taxcode then whatever happens during the year by end of March payslip you will have paid the correct tax

JosephHale23

Thanks both