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Income tax and staring a job mid tax year

cheekycactus
Posts: 31 Forumite

in Cutting tax
Hello,
Sorry if this is a silly question but if I’m starting a job in October that pays £60,000 per year, how is the amount of income tax I pay impacted (if at all) by starting a job mid tax year?
If there is an impact, how can I calculate it?
Sorry if this is a silly question but if I’m starting a job in October that pays £60,000 per year, how is the amount of income tax I pay impacted (if at all) by starting a job mid tax year?
If there is an impact, how can I calculate it?
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Comments
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What have you been doing so far this tax year ?
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Sorry, I forgot to include that. I haven’t been working in any of this tax year or last year.0
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If you had no other income then your first tax year your income would be £30k not £60k so you’d pay less tax.
i.e your tax bill will be (30,000 - 12570) * 20% = 3486
other income, taxable benefits, pensions etc. will affect it.
in a full tax year it would be
0 - 12570 at 0%
12571 - 50270 at 20% = 7540
60000 - 50270 at 40% = 3892
in this case if you can afford it then you could save the 40% tax by putting it into a pension although you need to bear in mind you can’t touch that until at least 55 and possibly 57 depending on how old you are.
this is simplistic and other factors will affect it but as you can see it’s not that hard to calculate it.2 -
Thank you for breaking it down for me! I appreciate it.0
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edit: My first post was wrong so deleted it.If you have not had any taxable income so far then you tick box A on the new starter form. You will be allocated a code of 1257L which will give you all of the annual tax allowance to date which at October is £7337 so assuming £5K per month pay and no pension deductions etc deducting no tax. November payday tax due will be £322. From then on you will pay £790 tax per month.. NI will be £442 per month.This year you will be a basic rate taxpayer, next year you will be higher rate and using this year figures paying £952 per month tax.
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Thank you!0
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And you will have to file self assessment.
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badmemory said:And you will have to file self assessment.0
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