First payslip - no tax! Why?

hollyedwards1992

Hi! Sorry if this is a question that gets asked a lot - i've googled & read a lot of articles but i'm still a bit confused.

i started a new job on the last monday of the month, and was paid on the last thursday. i handed in my p45 from my old job (which i finished the week before) on the wednesday in between, so i doubt that made a difference.

i've received my first pay slip & haven't been taxed. my tax code is 1150L M1, which i gather is the usual tax code with an emergency tax addition.

i've seen lots of articles saying that this might result in me being OVER taxed, so why haven't i been taxed anything? will i end up paying more tax than normal next month to make up for it? i just need to know if i can use this money or should stash it away in case i get taxed loads at the end of june!

for reference my salary is 23k, and was the same at my previous job.

p00hsticks

You might be better off asking over on the 'cutting tax' board
http://forums.moneysavingexpert.com/forumdisplay.php?f=22

I'm unclear as to what period your first paypacket covered - you say you started work on the last monday of the month and were paid on the last thursday - so four days later ? or just over a month ?

Was the pay for a week ? or a month ? or some other period ?

What was the amount you received ?

Rhealea

Because you're on a month 1 tax basis and you have only been paid for a few days (??) then the amount you have been paid will be below the monthly threshold hence not paying tax. Once your new employer puts your P45 figures onto their system your tax should correct itself.

hollyedwards1992

ahhh thanks, sorry! there are so many boards here it's very confusing haha. yes it only covered 4 days.

hollyedwards1992

yeah that's what i read - but does 'your tax will correct itself' mean i'll pay the correct amount for ONE MONTH's tax next payday, OR that i'll pay the correct amount for one months tax PLUS additional tax from these past few days where i WASNT taxed?

i was on the same salary at my old job so i'm used to a take home pay of ~1500 a month, and i just need to know if i should expect that next time i get paid or i should expect less.

thanks!

frugalmacdugal

Hi,

well, according to 'Listen to Taxman', on a salary of £23k, you will pay £192 tax per month, say £6.30 a day, so the extra 4 days will be about £25.

Edit: Oh, and it says your monthly take home pay will be £1576.

hollyedwards1992

thanks everyone!

chrisbur

If you want to know your actual tax position you have to give full details. From the P45 the taxable gross to date, tax paid to date, tax code, and week or month number. If there is a second set of figures also give taxable gross and tax paid this employment. From your first payslip the taxable gross and the week or month number.

Only with these details can your actual tax position be calculated.

chrisbur

frugalmacdugal wrote: »

Hi,

well, according to 'Listen to Taxman', on a salary of £23k, you will pay £192 tax per month, say £6.30 a day, so the extra 4 days will be about £25.

Tax does not work like this. If we assume that the last payment from the old employer and the first payment from the new employer were both paid in the same tax month then 20% of the new employer's payment will be due as tax.
This is by no means certain though there are other possibilities but without figures from the OP there is no way of telling what the actual tax position is.

Dazed_and_confused

Because the emergency tax code was used it is highly likely the op has paid insufficient tax.

As she has handed in her P45 to her new employer this will probably be resolved when she is paid next with any tax underpaid being collected all in one go from the next salary payment but if not she will get a calculation from HMRC in a year or so detailing the amount owed and how it needs to be paid (if still earning 23k it will probably be by extra payroll deductions during the tax year from 6 April 2019 to 5 April 2020).

fluke13

The same happened to my husband. Started a new job on 10th April this year, received a payslip on the 23rd (no tax) we thought ok maybe the P45 hasn't been sorted by his new employers. Received a full months wages this week and still no tax or NI contributions taken, his tax code is 1150L. Will have to see Tuesday when he goes back into work