Tax codes

Rose341

Really confused about tax codes and need something in simple language. 
I was out of employment from mid march until 1st Oct. I have received my wage slip today with a tax code 1250l m1 which I have looked up to find its an emergency code (previous code was 1256l)

Now I'm not complaining but I was expecting to pay a hefty emergency tax out of my first pay and I haven't. Does this mean it will be deducted next moth or does the fact I was out of work for 6 months have a bearing on this 

Thanks 

Comms69

Why would there be a 'hefty' emergency tax?

bradders1983

Comms69 said:

Why would there be a 'hefty' emergency tax?

Indeed, a bit of an odd comment. Being out of work for 6 months will actually count FOR you as you have to earn £12500 before the end of the tax year before you start paying tax and this is split over the 12 months. 

How much have they taxed you this month? I suspect you have been taxed as if you have had a job all year (i.e. all income over £1040-ish is taxed). At the end of the year you will be due a rebate if that is the case.

Rose341

bradders1983 said:

Comms69 said:

Why would there be a 'hefty' emergency tax?

Indeed, a bit of an odd comment. Being out of work for 6 months will actually count FOR you as you have to earn £12500 before the end of the tax year before you start paying tax and this is split over the 12 months. 

How much have they taxed you this month? 

I said hefty because in past employments I've paid huge emergency tax on first pay packages. 
I don't really understand tax codes at all. 
I paid tax this month but it wasnt that much. 
What I don't want to happen is me to spend money this month only to find I pay emergency tax next month but from what I can gather, all is fine because I've had this time away from work? 

bradders1983

If we knew how much your gross pay was, someone should be able to tell you how much you should have been taxed this month.  "Not much" is a very subjective term. 

Comms69

Rose341 said:

bradders1983 said:

Comms69 said:

Why would there be a 'hefty' emergency tax?

Indeed, a bit of an odd comment. Being out of work for 6 months will actually count FOR you as you have to earn £12500 before the end of the tax year before you start paying tax and this is split over the 12 months. 

How much have they taxed you this month? 

I said hefty because in past employments I've paid huge emergency tax on first pay packages. 
I don't really understand tax codes at all. 
I paid tax this month but it wasnt that much. 
What I don't want to happen is me to spend money this month only to find I pay emergency tax next month but from what I can gather, all is fine because I've had this time away from work? 

Salary, tax paid? - it's really simple formula tbh

Rose341

bradders1983 said:

If we knew how much your gross pay was, someone should be able to tell you how much you should have been taxed this month.  "Not much" is a very subjective term. 

Gross was £1666.67
Tax was £124.80
Other deductions £108.88
As I said I'm not complaining just confused as I was expecting a deduction 

bradders1983

Yup thats a bog standard deduction for someone earning £20k per annum. Come the end of the tax year you will be due a tax rebate as you wont have earned £12,500 gross by then (you will have only earned £10k in the tax year)

Comms69

Rose341 said:

bradders1983 said:

If we knew how much your gross pay was, someone should be able to tell you how much you should have been taxed this month.  "Not much" is a very subjective term. 

Gross was £1666.67
Tax was £124.80
Other deductions £108.88
As I said I'm not complaining just confused as I was expecting a deduction 

You're tax is spot on for a full year's earnings. You will be entitled to a refund in Apr of around £360 if it continues this way.

((£Gross - £12500) x 0.2 ) / 12 = Monthly tax

bradders1983

Comms69 said:

Rose341 said:

bradders1983 said:

If we knew how much your gross pay was, someone should be able to tell you how much you should have been taxed this month.  "Not much" is a very subjective term. 

Gross was £1666.67
Tax was £124.80
Other deductions £108.88
As I said I'm not complaining just confused as I was expecting a deduction 

You're tax is spot on for a full year's earnings. You will be entitled to a refund in Apr of around £360 if it continues this way.

((£Gross - £12500) x 0.2 ) / 12 = Monthly tax

Wont he gets ALL the tax back? 6 lots of £1666.67 is about £10k, and his personal allowance is £12500?

Comms69

bradders1983 said:

Comms69 said:

Rose341 said:

bradders1983 said:

If we knew how much your gross pay was, someone should be able to tell you how much you should have been taxed this month.  "Not much" is a very subjective term. 

Gross was £1666.67
Tax was £124.80
Other deductions £108.88
As I said I'm not complaining just confused as I was expecting a deduction 

You're tax is spot on for a full year's earnings. You will be entitled to a refund in Apr of around £360 if it continues this way.

((£Gross - £12500) x 0.2 ) / 12 = Monthly tax

Wont he gets ALL the tax back? 6 lots of £1666.67 is about £10k, and his personal allowance is £12500?

Yep, you're spot on, sorry wasn't thinking!