Net positive tax this month for no reason

Jutman14

Hey guys,

Bit of a weird one this morning and sorry if this is a little more of a BAU question but I couldn't find much on this. I've recently started a new job in the UK after 2 years abroad and I've just received my 2nd months paycheck.


First months paycheck = £3,333 Tax/NI =£1,021 (on a starter tax code I assume: 0T/1), Net pay = £2,311

Anyway, that's all good as I fully expect my tax to fluctuate until the code settles.

But this month I've received a net positive in my deductions. Paycheck = £3,333 Tax= -£237, (Tax code: 1250L/0), Net pay = £3,570.


I can't find an explanation for this, and it can't be an error from my employers side as the paycheck figure before tax is identical. So why the huge tax swing from month 1 to 2?

Thanks!

BoGoF

Just to clarify.....are we talking about your September and October pays (tax months 6 and 7)?

Basically you were not given the benefit of your tax free allowance with the 0T code. At month 6 on a standard tax code (1250L) your tax free allowance would be £6250 and at month 7 £7291. If the second months payment was month 7 I would have expected all the tax deducted in month 6 to have been repaid as your total pay to date is under the month 7 allowance.

Jutman14

That's correct, September and October.

Thanks, that makes sense. So as I'll have more or less blown through my personal allowance by next month I should expect a more sensible figure right?

BoGoF

Yes, but there is still an anomaly with the tax refund you got in October....it should have been more. What was the taxable pay to date figure in your October payslip?

Jutman14

Taxable pay YTD was £6,666.

Though the tax I paid in September (£708) was the exact figure refunded this month

BoGoF

Can you confirm the September tax was £708.20? If so this should have been refunded in full in October.

Jutman14

That's correct, Tax = £708, NI = £313 and Student loan = £157

Would that suggest the refund was accurate?

BoGoF

Ahh.....student loan, you didn't mention that before.

Your October payslip should show pay £3333 plus tax refund £708 minus NI £313 and student loan £157 = £3571 (figures rounded).

As your post only said tax refund £237 that threw me. Does your payslip for October not break it down as above?

Jutman14

It does break it down although I assume that NI and SL are deducted regardless of tax and personal allowance. Although, yeah I probably should have mentioned that split!

BoGoF

All is correct then.

Going forward, your November pay will be £2530, December £2404 and £2404 for the rest of the tax year.....assuming you pay stays the same.

Jutman14

Awesome, thanks for your help!