Salary increase mid way through tax year

fluffyowl

Hi, hoping someone can help.

I have been earning very little this financial year (<£500 per month)  but am due to start getting a regular salary next month. Will I pay virtually no tax for a few months until I have used up my tax free allowance, or pay tax as normal and then get a rebate in March, or does it depend on the employer? ... and if so is there any way I can get it now as I could really do with it!

Many thanks for your tax wisdom!

zagfles

Is it in a new job or the same job? If it's the same job, assuming you have a normal tax code (no X or M1/W1 etc) you'll probably pay no tax for a bit then start paying some depending on salary. If a new job then depends what the tax code is initially set to, depends on getting all the P45 etc info to the new employer, but if it's initially wrong should be able to get it corrected in year and if you overpaid tax it should be refunded in your payslip when all is sorted.

Dazed_and_C0nfused

You will pay no tax until your annualised pay exceeds your tax code allowances (assuming your tax code is correct for bott the old and new pay).

For example by tax month 8 (pay day in month to 5 December) tax code 1257L would give you tax code allowances of £8,386 so your total taxable pay by then would need to be more than that for you to pay any tax.

So say you earned 4 months at £500 (£2,000) and then 4 at £1,500 (£6,000) you still wouldn't have to pay any tax by that point.

That's assuming you give your new employer your P45 from your old job.

I'm assuming you are changing job.  If not you don't need to do anything.

fluffyowl

Ah yes, it's the same company. Great to know, thanks for your replies.