How much tax will I pay?

megxmas

Hello!

I hope this is the right place - I have probably very obvious questions about tax that I would really appreciate some help with!

I'll be starting my first proper job as a teacher in September, earning pre tax around £30,000 a year. I'll get my first pay check at the end of September. I know that the tax year ends in April, so I won't earn a full year's wages by then, and I know I get a personal allowance. My question is, will I earn 2500 a month until I've reached my personal allowance, and then will I start to be taxed? And then when the tax year starts again, will I go back to earning 2500 a month until I reach the personal allowance again? Or is it calculated so that I'll just receive around 2000 a month from the start, as that's roughly the post tax amount of 24,000 divided by 12? Or any other variations thereof?

I'm really sorry if this is a stupid question - I've done my best to try to look it up online but been unsuccessful!

Thank you in advance!

chrisbur

Have you had any taxable income before starting this job?
If so do you have a P45?
If so what are the details?

megxmas

Not in this tax year - I have a P45 from a part time job I had at uni that I finished last July, but I never earnt enough from that to pay tax.

laticsforlife

April to September = 6m
6/12ths of the annual tax allowance is £6,250.

So in September, so long as you complete forms to say you've not earned anything in the year to date, you shouldn't pay any tax on £2,500, nor in October, it'll only happen when the pro-rata allowance is less than your cumulative pay to date (December by my reckoning).

chrisbur

megxmas wrote: »

Not in this tax year - I have a P45 from a part time job I had at uni that I finished last July, but I never earnt enough from that to pay tax.

Best to forget about that P45
When you start you need to complete a new starter checklist and select the option that this is your first employment this tax year.
This will allow your employer to use the emergency tax code on a cumulative basis.
The emergency tax code is currently 1250L which will give you just over £12500 tax allowance for the year.
When your first payday will be,or if it will be for a full month, I cannot tell but as an example let's say you are paid first in month 6 which would give you a tax allowance of £6250 aprox. Obviously you will be earning under that so no tax is deducted.
As each month passes your allowance goes up about £1041 and your earnings by £2500 so earnings will eventually catch up and then anything over will be taxed at 20%
Of course things do not always go as they should and you may be taxed non-cumulative to start with or sometimes it has been known for a new starter to be taxed at 20% of all they earn these are corrected later by HMRC issuing a tax code to the employer.
Also HMRC may issue a bit different tax code after a month or two depending on your individual circumstances.

JimmyTheWig

You'll earn £17,500 from September to the end of March.
Personal allowance is £12,500.
So you'll pay tax on £5000, which is £1000.
That £1000 will be split over the 7 months you are working, so you'll pay £143 tax each month.

National Insurance works differently - it's worked out monthly so you pay that as though you are earning £3000 a year. So you'll pay £214 a month NI.
So in total you'll pay £357 and receive £2143.

Next tax year, assuming tax/NI rates and allowances stay the same and your wages stay the same you'll take home £1995.

In both of these cases, though, I presume your take-home will be less than this due to pension contributions.

xylophone

Do you have other earnings in this tax year?

See https://www.taxguideforstudents.org.uk/working/employed/first-time-workers

Information above re "new starter/ tax/NI/ student loan.

Don't forget your pension deduction.

https://www.teacherspensions.co.uk/members/resources/guides.aspx

https://www.thesalarycalculator.co.uk/salary.php

See https://forums.moneysavingexpert.com/showthread.php?t=5873297

chrisbur

JimmyTheWig wrote: »

You'll earn £17,500 from September to the end of March.
Personal allowance is £12,500.
So you'll pay tax on £5000, which is £1000.
That £1000 will be split over the 7 months you are working, so you'll pay £143 tax each month.

.

PAYE does not work like this. With the details given the OP should get a cumulative tax code which will mean no tax to start with and then when their earnings pass their tax allowance tax will start to be deducted.
As I said things do not always work as they should so OP may be over-taxed and then get this corrected later.
Either way the tax will not be split evenly over 7 months.