Should I be paying tax

MichaelAhanti

That's probably what it was then.

MichaelAhanti

I know my allowance was £10,000. I'm just miffed that I earn so little then have to wait until the following tax year to get a refund. 2 or 3 years ago I worked for an agency who adjusted my pay throughout the year, taxing me and then paying some back. This employer does not do that

Lokolo

You should also remember that this doesn't also mean National Insurance. The tax allowance only refers to income tax.

Most PAYE systems will refund the tax paid throughout the year if you haven't used up your allowance.

If not, then of course you have to wait until after the tax year to claim back.

MichaelAhanti

So it's down to HMRC, not the employer?

Darksparkle

MichaelAhanti wrote: »

I know my allowance was £10,000. I'm just miffed that I earn so little then have to wait until the following tax year to get a refund. 2 or 3 years ago I worked for an agency who adjusted my pay throughout the year, taxing me and then paying some back. This employer does not do that

Apolgies I'm mixing this up with another post. The personal allowance for 2015/16 was £10,600 so a tax code of 1060L. If yours was 10500L as you say, there is no chance you'd have paid tax so that's not the code that was operated.

You didn't need to wait though. You could have dealt with it at the time by finding out what the issue was. If the tax code was causing the problem then you could ask HMRC to change it. Your employer cannot do this without their instruction.

If your employer was using the correct code but still causing problems then discuss with them.

MichaelAhanti

Thanks. I'll do that to try and stop it happening this year

bspm

Darksparkle wrote: »

If HMRC have assigned the correct tax code yes.

I took it as a given as the poster stated

Should I only pay tax after I have earned £10,500 as per my tax code? Thanks

Darksparkle

bspm wrote: »

I took it as a given as the poster stated

Should I only pay tax after I have earned £10,500 as per my tax code? Thanks

The allowance was £10,600 though and OP said tax code was 10500L rather than 1060L.

nannytone_2

bspm wrote: »

I took it as a given as the poster stated

Should I only pay tax after I have earned £10,500 as per my tax code? Thanks

no, you pay tax on earnings in each pay period.
otherwise you would be paid tax free for several months and then lose 20% of everything you earn after.

so on a weekly pay of £500 for example, you would receive the whole amount for 22 weeks and then pay £100 a week tax for the rest of the year.

they do it this way so your earnings remain stable.

well they would if it wasn't for zero hour contracts

bspm

nannytone wrote: »

no, you pay tax on earnings in each pay period.
otherwise you would be paid tax free for several months and then lose 20% of everything you earn after.

so on a weekly pay of £500 for example, you would receive the whole amount for 22 weeks and then pay £100 a week tax for the rest of the year.

they do it this way so your earnings remain stable.

well they would if it wasn't for zero hour contracts

I know you pay tax in each pay period, the quote you copied was an answer to darksparkle.

All I said many posts ago was that the poster stated he may earn £300 one week £200 the next then not earn anything for a few weeks.
In that instance tax free pay of approx £200 per week would mean that say by week four (only earning £500 in weeks 1 and 2 in total) would mean that by week four his freepay should be in the region of £800 therefore, were his employers operating the correct code he would either not pay tax in week four or would in fact get a small rebate.

I must admit I haven't prepared wages for several years now but I am aware that tax free pay is accumulative, that has never changed.