Taxes

Denny54

Hi,

I recently started working full time and i am new to paying all these taxes & stuff so sorry for the newbie questions

My payslip shows me getting paid £1833 and after tax £124 i am left with £1708 ( Who pays this £124 and when?)

Also my payslip shows 

Employee National Insurance £124.36 

Employer National Insurance £151.29

Who pays these and when?

The business is new and the boss doesnt know much about these as well and he has just recently set up paye.

molerat

Tax and employee NI are deducted from your pay and paid to HMRC by the employer along with their own employer NI.  It is up to your employer to  deduct them from your pay before you receive it.  Are you sure those figures are correct as what you actually received in you pay packet does not tally with what should have been deducted.

More importantly what tax code is showing on the payslip ?

What were you doing before you "recently started  working full time" ?

FatherTireseus

A bit worrying if your boss doesn't understand PAYE!

He pays you X per year/ month and then works out what tax and National Insurance is due, if any.  (Very low earners won't pay either).  

Your payslip should show gross pay (what you'd get in if taxes didn't exist), less any deductions for tax and employees National insurance.  The employer should pay the amount of tax and NI deducted over to HMRC (the taxman).

On top of that the employer has to pay a tax on wages paid which is the employer's National Insurance.  You don't pay that, your employer does, and he pays that to HMRC too.

All these payments are made every time the payroll is run.

You don't mention pension contributions but you should be auto-enrolled into a pension scheme and there should be a further deduction for that....but if the business is new maybe the boss doesn't understand his obligations on that side of things.

Denny54

This is my payslip from Sept

Also before that i was getting carers allowance and after that i started receiving lwrca from UC

FatherTireseus

At some point you will be paying tax as well; I'm guessing you're not at the moment because you've got enough personal allowance accrued. The way that works is you get 1/12 of your personal allowance (£12570 this year) allocated each month, but if you only start a job with taxable pay part way through the year then all your accrued allowance is effectively allocated against your income before you pay tax. 

At your current rate of pay if you had no previous income in the tax year it might be March before you pay tax. However I am the first to admit I am not at all familiar with the tax position of benefits, what's taxable and what's not, so you might end up paying some tax earlier than March, depending on your income in the tax year to date.

So be prepared for tax to be deducted maybe later this tax year, but almost certainly from April 2022 when the next tax year starts.   I also still think the auto enrolment of pensions should be a deduction too, unless you opted out.

[Deleted User]

FatherTireseus said:

At some point you will be paying tax as well; I'm guessing you're not at the moment because you've got enough personal allowance accrued. The way that works is you get 1/12 of your personal allowance (£12570 this year) allocated each month, but if you only start a job with taxable pay part way through the year then all your accrued allowance is effectively allocated against your income before you pay tax. 

At your current rate of pay if you had no previous income in the tax year it might be March before you pay tax. However I am the first to admit I am not at all familiar with the tax position of benefits, what's taxable and what's not, so you might end up paying some tax earlier than March, depending on your income in the tax year to date.

So be prepared for tax to be deducted maybe later this tax year, but almost certainly from April 2022 when the next tax year starts.   I also still think the auto enrolment of pensions should be a deduction too, unless you opted out.

Yes - but note that the op was in receipt of carers allowance prior to employment which is taxable.