Surprising payslip!

OldFool

Just received my first monthly payslip, for under £1k, from my new employer, (very small) supply teaching agency. NI deducted; correct tax code printed (which I gave them on joining), but no tax deducted at all. Very confused. No umbrella company involved. I’m not self-employed. I was a regular PAYE paying individual until I left my last job (coincidentally) at the end of the last tax year.

Any thoughts anyone? Much appreciated.

molerat

What tax code ? This is M2 so you will have 2/12ths of the annual tax free allowance set against pay.

Dazed_and_confused

Just received my first monthly payslip, for under £1k

Even if you were being taxed on the emergency basis then you can earn £988 each month before any tax would be deducted.

OldFool

1185L. It’s a mystery... this is my first payslip in this employment.. I haven’t worked since leaving last job in first week of April. Any thoughts appreciated..

p00hsticks

OldFool wrote: »

1185L. It!!!8217;s a mystery... this is my first payslip in this employment.. I haven!!!8217;t worked since leaving last job in first week of April. Any thoughts appreciated..

As molerat says - this is month 2, so as you haven't worked before so far this tax year you will have both April and Mays PAYE tax allowance - thats 2 x 11,850 / 12 = £1,975.

So you could have earned up to this amount before paying tax.

00ec25

OldFool wrote: »

1185L. It’s a mystery... this is my first payslip in this employment.. I haven’t worked since leaving last job in first week of April. Any thoughts appreciated..

you have been told what has happended

the tax year starts from 6 April each year. This is your first job in it, so you have unused tax free allowance b/fwd to May

AnotherJoe

Hopefully you aren't teaching anything involving maths ?

molerat

Out of interest do you have any other source of income ?

OldFool

No other income, just limping along..

Though a friend (on a low wage themselves) has just told me that my agency may be forecasting that I’ll earn less than my annual allowance while with them, so are not taxing me quite deliberately for now, and will only begin to do so if I go over my allowance. That makes sense to me, even though it hasn’t ever happened to me before (I’ve always had a higher income before).

Thanks for your comment.

molerat

You are allowed £988.26 per month tax free and you have a spare months worth in hand from April.



Tax due each month is calculated as total earnings year to date - total (monthly cumulative) tax free year to date = taxable amount year to date = tax due year to date - tax paid year to date = tax due this month.

OldFool

Thank you for a really clear reply. I should be able to forecast from now on.

Best wishes