Tax from 2 months of payments

Z321

Hi,

I'm a student on placement and my yearly salary before tax is £18,500.
I started on June 1st 2021 and I finish on May 31st 2022.
This covers two tax years, so what's the deal here?

I got my payslip yesterday and it came through this morning as £1541.67 + bonus, total tax to pay (PAYE and Nat Ins) £308.54.

Should I be paying tax on that amount given that I will be earning less than the threshold for this tax year?

Hope that makes sense, it's my first time dealing with this stuff If you need more info just let me know.

Thanks.

chrisbur

As full details not given cannot check exactly but on the tax/NI figure you give assuming standard tax allowance this suggest a gross of about £1900.  The tax NI for this amount is the normal amount for month 1 of this tax year.  A better check can be done if you want to give taxable gross and tax code.
What do you expect to earn if anything after May.  If you have no earnings then as the months pass your tax allowance will go up (it increases by 1/12 of the annual figure for each tax month.) and you will be entitled to a tax rebate, details here....
 https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

If going to other employment then give them your P45 and they will tax as appropriate depending on your earnings.

Regarding the NI that is based on your earnings each pay period not yearly as tax is so there will be no adjustment here.

Z321

chrisbur said:

As full details not given cannot check exactly but on the tax/NI figure you give assuming standard tax allowance this suggest a gross of about £1900.  The tax NI for this amount is the normal amount for month 1 of this tax year.  A better check can be done if you want to give taxable gross and tax code.
What do you expect to earn if anything after May.  If you have no earnings then as the months pass your tax allowance will go up (it increases by 1/12 of the annual figure for each tax month.) and you will be entitled to a tax rebate, details here....

If going to other employment then give them your P45 and they will tax as appropriate depending on your earnings.

Regarding the NI that is based on your earnings each pay period not yearly as tax is so there will be no adjustment here.

Thanks,
Total gross is £1886.67

No income expected after May, student finance only.

Dazed_and_C0nfused

Yes of course you should be paying tax.

The fact is you are currently earning £18,500/year.

If you stop earning part way through the tax year and don't get a new job then you will be eligible to claim back any overpaid tax.

chrisbur

Z321 said:

chrisbur said:

As full details not given cannot check exactly but on the tax/NI figure you give assuming standard tax allowance this suggest a gross of about £1900.  The tax NI for this amount is the normal amount for month 1 of this tax year.  A better check can be done if you want to give taxable gross and tax code.
What do you expect to earn if anything after May.  If you have no earnings then as the months pass your tax allowance will go up (it increases by 1/12 of the annual figure for each tax month.) and you will be entitled to a tax rebate, details here....

If going to other employment then give them your P45 and they will tax as appropriate depending on your earnings.

Regarding the NI that is based on your earnings each pay period not yearly as tax is so there will be no adjustment here.

Thanks,
Total gross is £1886.67

No income expected after May, student finance only.

When you have finished employment follow the P50 link above; there is an option to select....
"I do not expect to go back to work (including part-time or casual employment) before the start of the new tax year on 6 April. I do not get a pension from my old employer and have not claimed any of the taxable benefits listed on page one."

Your tax will then be recalculated on the basis of your full annual tax allowance.