On student placement getting very little paye deducted from my salary?

oliel

Hi I'm on my student placement for a year - i live and study in Scotland my placement is in London my salary is £25k  and I also get my student loan because of the type of course I'm doing.   My tax code is S1257L  and my gross monthly is £2083.33 however the first month I didn't pay any paye at all and this month I've only had £26.03 deducted from my wage slip?  National insurance was £82.83  Why is the paye so low?   I thought it would be around £200 per month.

sammyjammy

Remember if this is only your second month of working you are not working for the whole of the tax year so will pay less tax than you think.  If you started work in August then you are only working for 8 months of the year which in about 16.5k of your 25k.

Penguin_

Your tax free allowance is year to date so, assuming your last pay is in tax month 6, your tax free allowance would be £6285.00. So you would only pay taxon anything above that so far this year.

Sarahspangles

oliel said:

Hi I'm on my student placement for a year - i live and study in Scotland my placement is in London my salary is £25k  and I also get my student loan because of the type of course I'm doing.   My tax code is S1257L  and my gross monthly is £2083.33 however the first month I didn't pay any paye at all and this month I've only had £26.03 deducted from my wage slip?  National insurance was £82.83  Why is the paye so low?   I thought it would be around £200 per month.

On that tax code you get 12,570 tax free from April 6th to April 5th next year, and you can think of it as divided into twelfths to set against each month’s income. You didn’t use your one-twelfths for April, May, June and July. So in August you used most of the accumulated total and in September you still had some left but began to pay some tax. Next month you will get one twelfth of your 12,570 tax free and pay tax on the rest.

If your placement ends next July or August, you will have some earnings that fall in 2025/26. If you don’t expect to earn again that tax year, you can reclaim some of the tax you’ve paid.

Register for the HMRC App and you will be able to see and do some of this stuff online.

oliel

Sarahspangles said:

oliel said:

Hi I'm on my student placement for a year - i live and study in Scotland my placement is in London my salary is £25k  and I also get my student loan because of the type of course I'm doing.   My tax code is S1257L  and my gross monthly is £2083.33 however the first month I didn't pay any paye at all and this month I've only had £26.03 deducted from my wage slip?  National insurance was £82.83  Why is the paye so low?   I thought it would be around £200 per month.

On that tax code you get 12,570 tax free from April 6th to April 5th next year, and you can think of it as divided into twelfths to set against each month’s income. You didn’t use your one-twelfths for April, May, June and July. So in August you used most of the accumulated total and in September you still had some left but began to pay some tax. Next month you will get one twelfth of your 12,570 tax free and pay tax on the rest.

If your placement ends next July or August, you will have some earnings that fall in 2025/26. If you don’t expect to earn again that tax year, you can reclaim some of the tax you’ve paid.

Register for the HMRC App and you will be able to see and do some of this stuff online.

I did have a prt time job before my placement while at uni that i earned £2596 at and didn't pay any tax adding that to what I will earn on my placement up to 5/4/25 the total gross would be £19076 so i think i should be paying tax on £6506 over the period from august 24 to mar 24?  

Dazed_and_C0nfused

oliel said:

Sarahspangles said:

oliel said:

Hi I'm on my student placement for a year - i live and study in Scotland my placement is in London my salary is £25k  and I also get my student loan because of the type of course I'm doing.   My tax code is S1257L  and my gross monthly is £2083.33 however the first month I didn't pay any paye at all and this month I've only had £26.03 deducted from my wage slip?  National insurance was £82.83  Why is the paye so low?   I thought it would be around £200 per month.

On that tax code you get 12,570 tax free from April 6th to April 5th next year, and you can think of it as divided into twelfths to set against each month’s income. You didn’t use your one-twelfths for April, May, June and July. So in August you used most of the accumulated total and in September you still had some left but began to pay some tax. Next month you will get one twelfth of your 12,570 tax free and pay tax on the rest.

If your placement ends next July or August, you will have some earnings that fall in 2025/26. If you don’t expect to earn again that tax year, you can reclaim some of the tax you’ve paid.

Register for the HMRC App and you will be able to see and do some of this stuff online.

I did have a prt time job before my placement while at uni that i earned £2596 at and didn't pay any tax adding that to what I will earn on my placement up to 5/4/25 the total gross would be £19076 so i think i should be paying tax on £6506 over the period from august 24 to mar 24?  

Did you hand your P45 from the part time job to your current employer?  

Can you post all the pay and tax figures from your latest payslip 

NB.  I'm assuming that the £2,596 you refer to was what you were paid, from 6 April 2024 to whenever the part time job ended.

oliel

Dazed_and_C0nfused said:

oliel said:

Sarahspangles said:

oliel said:

Hi I'm on my student placement for a year - i live and study in Scotland my placement is in London my salary is £25k  and I also get my student loan because of the type of course I'm doing.   My tax code is S1257L  and my gross monthly is £2083.33 however the first month I didn't pay any paye at all and this month I've only had £26.03 deducted from my wage slip?  National insurance was £82.83  Why is the paye so low?   I thought it would be around £200 per month.

On that tax code you get 12,570 tax free from April 6th to April 5th next year, and you can think of it as divided into twelfths to set against each month’s income. You didn’t use your one-twelfths for April, May, June and July. So in August you used most of the accumulated total and in September you still had some left but began to pay some tax. Next month you will get one twelfth of your 12,570 tax free and pay tax on the rest.

If your placement ends next July or August, you will have some earnings that fall in 2025/26. If you don’t expect to earn again that tax year, you can reclaim some of the tax you’ve paid.

Register for the HMRC App and you will be able to see and do some of this stuff online.

I did have a prt time job before my placement while at uni that i earned £2596 at and didn't pay any tax adding that to what I will earn on my placement up to 5/4/25 the total gross would be £19076 so i think i should be paying tax on £6506 over the period from august 24 to mar 24?  

Did you hand your P45 from the part time job to your current employer?  

Can you post all the pay and tax figures from your latest payslip 

NB.  I'm assuming that the £2,596 you refer to was what you were paid, from 6 April 2024 to whenever the part time job ended.

I handed in my p45,  which was from 6/4/24 to when job ended in june.  current pay slip shows earning to date in current employment of £4006, ni to date of £152.83  and tax to date of £26.03.

Dazed_and_C0nfused

oliel said:

Dazed_and_C0nfused said:

oliel said:

Sarahspangles said:

oliel said:

Hi I'm on my student placement for a year - i live and study in Scotland my placement is in London my salary is £25k  and I also get my student loan because of the type of course I'm doing.   My tax code is S1257L  and my gross monthly is £2083.33 however the first month I didn't pay any paye at all and this month I've only had £26.03 deducted from my wage slip?  National insurance was £82.83  Why is the paye so low?   I thought it would be around £200 per month.

On that tax code you get 12,570 tax free from April 6th to April 5th next year, and you can think of it as divided into twelfths to set against each month’s income. You didn’t use your one-twelfths for April, May, June and July. So in August you used most of the accumulated total and in September you still had some left but began to pay some tax. Next month you will get one twelfth of your 12,570 tax free and pay tax on the rest.

If your placement ends next July or August, you will have some earnings that fall in 2025/26. If you don’t expect to earn again that tax year, you can reclaim some of the tax you’ve paid.

Register for the HMRC App and you will be able to see and do some of this stuff online.

I did have a prt time job before my placement while at uni that i earned £2596 at and didn't pay any tax adding that to what I will earn on my placement up to 5/4/25 the total gross would be £19076 so i think i should be paying tax on £6506 over the period from august 24 to mar 24?  

Did you hand your P45 from the part time job to your current employer?  

Can you post all the pay and tax figures from your latest payslip 

NB.  I'm assuming that the £2,596 you refer to was what you were paid, from 6 April 2024 to whenever the part time job ended.

I handed in my p45,  which was from 6/4/24 to when job ended in june.  current pay slip shows earning to date in current employment of £4006, ni to date of £152.83  and tax to date of £26.03.

Tax due on £6,602 paid by the end of September would be ~£50 for Scottish resident.

Is there a tax period (week or month) on your latest payslip?

Do/did you pay any "net pay" pension contributions with either job?