New Job, No Tax Being Deducted

NineDeuce

LilElvis wrote: »

Totally 100% incorrect.

Totally happened throughout my working career, so it must be just dodgy tax specialists and accountants getting it wrong then...

LilElvis

NineDeuce wrote: »

Totally happened throughout my working career, so it must be just dodgy tax specialists and accountants getting it wrong then...

No, it's how payroll has run for decades. It's how the HMRC manuals instruct employers to operate payroll.

Sorry, but you really don't know what you're talking about.

MacMickster

NineDeuce wrote: »

Well I have been working for over 15 years and this is how it has been done for myself and just about every other colleague of mine throughout my whole working history whether it be on temporary or permanent contracts.

If you were to use a reputable salary calculator e.g. https://www.thesalarycalculator.co.uk/, then the default assumption is that your taxes are deducted exactly as I have stated, so please dont tell me that I have no idea how PAYE works.

I am aware that there are other tax codes and you can be nitpicking as you like about that. However, one is right to assume that they would pay tax from day one if they are over the personal allowance.

I ran my own small business for many years and did my own payroll. When I first started this was a completely manual system so I had to understand exactly how the system worked - not just put figures into some calculator.

LilElvis, PasturesNew and the OP's new employer are absolutely correct and you are mistaken.

siblades

Thanks for the replies everyone. It now makes sense to me. Because I didn't earn anything in April, May or June, my personal allowance from those months (£987.50 x 3 = £2,962.50) has rolled over.

If I had started my job in April 2018, I would have earned over the personal allowance straight away and my tax would have kicked in then.

Have I got that right?

NineDeuce

LilElvis wrote: »

No, it's how payroll has run for decades. It's how the HMRC manuals instruct employers to operate payroll.

Sorry, but you really don't know what you're talking about.

Yeah of course. I have never read a payslip in my whole entire life from the several jobs that I have had who have all coincidentally calculated my taxes in exactly the same way.

MacMickster

siblades wrote: »

Thanks for the replies everyone. It now makes sense to me. Because I didn't earn anything in April, May or June, my personal allowance from those months (£987.50 x 3 = £2,962.50) has rolled over.

If I had started my job in April 2018, I would have earned over the personal allowance straight away and my tax would have kicked in then.

Have I got that right?

Absolutely spot on.

LilElvis

NineDeuce wrote: »

It is done that way for precisely the reason that the OP alludes to - so that you dont have a large tax bill towards the end of the year.

This is completely standard.

Everybody is taxed on the basis that they will earn that amount for the rest of the year. If this turns out to be an overpayment, then HMRC can refund the worker at a later date.

Think about this statement for a minute and you will see that it doesn't hold water as it doesn't take account of any of the following, common, scenarios:

- Bonuses
- Commission
- Maternity pay
- Paternity pay
- Overtime
- Variable hour/ zero hour contracts
- Pay increases
- Changes of job - different pay rate
- Periods of unemployment

LilElvis

NineDeuce wrote: »

Yeah of course. I have never read a payslip in my whole entire life from the several jobs that I have had who have all coincidentally calculated my taxes in exactly the same way.

Before giving up work my job was UK Payroll and Benefits Manager for a FTSE 100 company. My budget had seven zeros in it. My department's work was repeatedly scrutinised by independent auditors and HMRC and no errors were found in the way the payroll was operated. But, hell, I obviously know nothing .....

LilElvis

siblades wrote: »

Thanks for the replies everyone. It now makes sense to me. Because I didn't earn anything in April, May or June, my personal allowance from those months (£987.50 x 3 = £2,962.50) has rolled over.

If I had started my job in April 2018, I would have earned over the personal allowance straight away and my tax would have kicked in then.

Have I got that right?

Correct. Run your figures through an online calculator and you will see which pay period you will start to pay tax and what a "normal" months tax deduction will be.

NineDeuce

MacMickster wrote: »

I ran my own small business for many years and did my own payroll. When I first started this was a completely manual system so I had to understand exactly how the system worked - not just put figures into some calculator.

LilElvis, PasturesNew and the OP's new employer are absolutely correct and you are mistaken.

Where did I say about just putting some figures into a calculator. However payroll are obliged to finally submit taxes to HMRC, every single employer of mine has done it in exactly the same way. They dont wait until you have earned over your personal allowance before charging you....