No Tax deducted from my first month's salary

waseem432000

I am not sure if this is suitable section to ask this question but i received my first salary in UK early this week and according to this same site's take home calculator, for a annual salary of 35k, my take home after NI and Income Tax deduction should have been £2265. I received £300 more in my account and i was a bit surprised. Checked my payslip and saw no tax deduction (NI was deducted). Spoke to my employer and he said that no tax will be deducted unless your yearly salary reached your tax free threshold. If i understood him correctly, no tax will be deducted from my first 4 salaries and they would start the deduction from fifth salary onward till the fiscal year ends . Am i understanding it correctly? Extra £300 a month for four months is a nice and unexpected surprise but a bit hard to believe/understand.

molerat

If on a standard 1185 tax code you can earn £988.26 each month before paying tax. That amount has been adding up each month since April so at October you had £6917.82 tax free allowance. Next month it will be £7906, Dec £8894 and Jan £9882 so you will pay nearly normal tax in Jan as your earnings year to date are Oct £2917, Nov £5933, Dec £8749 and Jan £11666. Your first full tax month will be Feb.

waseem432000

molerat wrote: »

If on a standard 1185 tax code you can earn £988.26 each month before paying tax. That amount has been adding up each month since April so at October you had £6917.82 tax free allowance. Next month it will be £7906, Dec £8894 and Jan £9882 so you will pay nearly normal tax in Jan as your earnings year to date are Oct £2917, Nov £5933, Dec £8749 and Jan £11666. Your first full tax month will be Feb.

That explain it quite well. Cheers. Perhaps I can have a Europe trip after all.