Should be paying more tax but still on 1250L

Dazed_and_C0nfused

So say £2k at first job and maybe £48k from the new job so borderline higher rate in this tax year.

Did you hand a P45 to your new employer?

Do you have your latest payslip showing the earnings for the tax year so far?

NKTZ21

tim_london said:

Tax year is 1 Apr - 31 Mar.  Did your income from Apr-Oct plus the income since them add up to over 100k before tax.  If not then your code is still correct.

Either way, sign up to govt's tax portal -   Here you can see their estimate of how much they think you will earn for the current tax year.  My experience is that they are frequently wrong especially when you start a new job, so make sure to correct it.

Note - if you are earning £125k but you are putting £25k into pension via salary sacrifice, then you should enter £100k as your expected income.  Your tax code should still be 1250L because you are earning under £100k.  

yes read about the pension thing, but not sure if I want those large chunks to be put in a pension yet. I want the money to put towards a mortgage. I will sign up to the website above

NKTZ21

Dazed_and_C0nfused said:

So say £2k at first job and maybe £48k from the new job so borderline higher rate in this tax year.

Did you hand a P45 to your new employer?

Do you have your latest payslip showing the earnings for the tax year so far?

it was the same employer so no p45. i tried to find my latest payslips but cannot find them, when i get paid at the end of the month I will come back and post.

NKTZ21

macman said:

If your salary increased to £7.5K per month in October, then by tax year end '21, you will have earned approx £45K in the new job. With the first 6 months of the tax year, on a lower salary, you won't be anywhere near the £100K point at which you start to lose your personal allowance: and you won't lose all of it until you hit £123K.
This assumes that you do not have additional taxable income from other sources.
If you want someone to do your self-assessment for you, then you need an accountant or book-keeper:a bank manager is not remotely suitable, or even able to.

yes, i think i need someone to do this stuff. I think i will be a little out of my depth. Thanks to you and everyone else who has had the patience to answer my questions.

macman

Putting money into a pension is about the most tax-efficient way of saving possible, you'd be crazy not to do so when on £90K per year.
Unless you know of another safe investment that pays you a 25% uplift...

calcotti

NKTZ21 said:

Dazed_and_C0nfused said:

You may start paying higher rate tax in March but need payslip details to know for sure.

Was this your first (only) job in the current tax year?

I had a part time retail job in July paying me £750 per month, then in October I started getting the 7k - I work in entertainment.

So, if this is everything, total income this tax year below £50,000 and you are still in basic rate band.

Jeremy535897

If you only earned three months at £750 April to September, then by the end of September you had earned £2,250 and should have paid no tax. In October, you should have had about £4,000 personal allowance to use, so if you were paid about £7,500, you probably paid around £500 NIC and about £1,000 tax, so a gross of £9,000 (I am assuming the code is cumulative). If you expect to get the same pay through to March, your total gross income will be about £56,000, so you may pay a bit of higher rate tax. I would have expected your receipt to have dropped in November, though, as you didn't have the unused personal allowance brought forward.

My figures are very rough and ready, and no doubt others will come up with a better answer.