Getting PAID tax in my pay instead of DEDUCTING it

arthurfowler

Hi there, I've been in employment now for two months after not working the rest of the tax year and now my second payslip shows that I have actually been PAID the full tax amount rather than it being deducted.

My previous tax amount (the same value as this month) was deducted as normal.

Am I being paid the tax because my tax allowance has been automatically calculated based on the fact I wasn't working for the rest of the tax year?

Also, I am on tax code 1100L and from checking all salary calculators I seem to be being taxed £100 more than it should.

Can anyone help?

suki1964

Usually any tax overpayment is paid back the second pay month

When you first started, no doubt to get you on the payroll they just deducted tax at the rate it should have been taken if you were to pay tax.

It's happened to me more then once

arthurfowler

The way it's happened is that I haven't paid any tax now though as this month's tax completely cancelled out last month's. Surely I should be paying something in tax?

engineer_amy

if you haven't been working since April then you wont have earned enough to pay tax.


If you are on a standard tax code of 1100L (not W1 or X after it) then by the end of November, your allowance is £7333.33. If you haven't earned that, then there is no tax to pay.


What has likely happened is that you were put on an emergency code in month 1 and tax was deducted. At some point before the payroll was done in month 2, HMRC sent confirmation of your code to your employer, and confirming that you had no earnings during the year. So when payroll was calculated in month 2, they refunded the tax you had paid in month 1.


depending on your salary, it might be a few months before you earn enough to pay tax, or you might not even pay any tax this tax year if you haven't earned more than £11k by 5th April 2017

arthurfowler

Thank you Amy! This is almost a dream now lol. I needed it though after chewing through my savings for months and no JSA

Madbags

Amy is probably right. This is how it usually goes, I work in payroll and would have gave the same answer.

arthurfowler

Hi guys, need your help again. So today I find ally hit my 11k threshold. Pay to date is £11,500.

I have been taxed on the whole salary this month though. Wouldn't only the £500 be taxed as the rest should still be untaxed as I shouldn't be paying tax until after 11k?

Madbags

What is your monthly gross pay if you don't mind me asking? and how much tax have you paid this month?


It will help me explain the calculation to you.


PM me if you want.

agrinnall

Your understanding would only be correct if you exceed the £11K in your March pay. For the January pay you would only be eligible for 10/12ths of your personal allowance, or approximately £9,166. What you are seeing is probably correct, but we can only check if you give us the figures for December and January.