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Income Tax Question

MustacheAlec
Posts: 1 Newbie
in Cutting tax
I'm currently on a placement year at university meaning I started working in July and will finish in July before returning to uni for another year.
My salary for these 12 months is £18,000 - meaning I will earn £13,500 before the new tax year in April and £4,500 after. Does this mean that only £2,500 of my total income from the year is taxable (£13,500 - £11,000)? And that therefore the only income tax I should have to pay is £500 throughout the entire year, assuming no other income?
Thanks to anyone who can help, I'm just starting to understand how the tax world works!
Alec
My salary for these 12 months is £18,000 - meaning I will earn £13,500 before the new tax year in April and £4,500 after. Does this mean that only £2,500 of my total income from the year is taxable (£13,500 - £11,000)? And that therefore the only income tax I should have to pay is £500 throughout the entire year, assuming no other income?
Thanks to anyone who can help, I'm just starting to understand how the tax world works!
Alec
0
Comments
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Since you will earn less than your tax allowance you are not liable for any tax in the second year. However the way PAYE works is that you will actually be taxed as if you were earning for the full year. You will then be due a refund at the end of the tax year or you could contact HMRC and ask for one earlier.0
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You can use a P50 to reclaim tax when you finish work....
http://www.studenttaxservices.org.uk/media/dContent/uploads/resources/p50_001.pdf0 -
Incidentally, the Personal Allowance for year to 5th April 2019 is £11,850 - so that will save you a few bob0
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From 2013 to 2019 I was living abroad and in 2016 took but not working I took my royal mail pension early and paid £6000 tax I am now back and living in UK can I claim the tax back that I paid in 2016 ta-1
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