daughters first few pay slips, shes paying tax at at £150 a month on a wage of 5865.00 a year

pete1975

hi all, daughter has got a job as part time at one of large screw pick and and collect stores,  shes on annual wage of £5865.60.   and never had a job before so shouldnt pay tax yet.

her first pay slip was gross pay £209.48 and then shows taxable pay £209.48 and then tax paid as £41.80
her second pay slip is gross pay £754.68 and she has taxable pay £754.68 and then tax paid £150.80  

is it possible thats NI contributions but then £150.00 seems alot for the money shes received.
the pay slip doesnt break it down any further and just shows tax paid.

just noticed she has a Tax code of OT M1  which ive googled and it shows ''
The tax code OT means that you have no tax free personal allowance. Not having any tax free personal allowance can result in you paying more income tax than is necessary, because you don't have a correct tax code.

thanks

Dazed_and_C0nfused

She should be on the emergency tax code of 1257L.

That would ensure no tax was deducted unless she earned more than £1,048 in a month.

Did she complete a new starter declaration for the company when she started?

Has she never ever had another job? 

Irrespective of any of the above she will be able to sort this with HMRC and any tax refund due (for tax deducted after 5 April 2021) will probably be refunded by her employer the next time she is paid (after they receive the new tax code).

pete1975

Dazed_and_C0nfused said:

She should be on the emergency tax code of 1257L.

That would ensure no tax was deducted unless she earned more than £1,048 in a month.

Did she complete a new starter declaration for the company when she started?

Has she never ever had another job? 

Irrespective of any of the above she will be able to sort this with HMRC and any tax refund due (for tax deducted after 5 April 2021) will probably be refunded by her employer the next time she is paid (after they receive the new tax code).

thanks,  she cant remember filling in any form, she had a part time job which ended in feb 2020 but due to covid it last a month so she was only £6.00 an hour so hasnt earnt really any sum of money to attract tax.  ive just said lets wait til your next pay slip so see if HRMC advise the company a tax code,  and i can see if as you say it has that tax code you mentioned applied.

sheramber

ig her employer have not notified HMRC (and if she did not complete a starters form the chances are they haven't,)  she has started they will not know.

It might be worth her while contacting HMRC  to check.

She will need her NI number and  the employer tax reference on her payslip.

Dazed_and_C0nfused

She could check her Personal Tax Account to make sure the previous company notified HMRC that she stopped working for them and if so the emergency tax code should be issued on a cumulative basis and she would get the refund via her wages.

Otherwise it would be non cumulative which means no more tax will be deducted but no refund would be made yet.

She could avoid all this rigmarole in future by completing a new starter declaration and ensuring the correct person receives it (with any future employer).

pete1975

Dazed_and_C0nfused said:

She could check her Personal Tax Account to make sure the previous company notified HMRC that she stopped working for them and if so the emergency tax code should be issued on a cumulative basis and she would get the refund via her wages.

Otherwise it would be non cumulative which means no more tax will be deducted but no refund would be made yet.

She could avoid all this rigmarole in future by completing a new starter declaration and ensuring the correct person receives it (with any future employer).

OK thankyou, yes shes just turned 18 so lots to learn but all useful to know for her.  I will help her set a HRMC personal log on 

molerat

Looks like a lazy employer, 0TM1 is to be used when they are "unable to get a declaration from the employee"