Income Tax and New Job

Swanseajack

My stepdaughter started her first job in January and has paid no tax to date. She earns around 20k. She seems to think that she won't pay any tax until she's actually been paid the full amount of her personal allowance, which doesn't sound right to me. If she hasn't paid tax up until now, I presumed that was because she clearly wasn't going to earn over 12,570 before the end of the current tax year. However, after 6 April, surely she will pay tax, with the personal allowance apportioned monthly throughout the year? I'm worried that she's thinking she'll have all this extra money that in fact will be taxed from the start of the new tax year, which is obviously now very close. Thanks to anybody that can help to clarify.

Isthisforreal99

You are correct. The personal allowance is apportioned over 12 months so effectively anything over £1047.50 per month will be liable to tax. I assume monthly pay?

The reason she hasn't paid tax this tax yeat is she has all those 'unused' months allowances available as she had no income.

Edit - roughly £124 tax per month, assuming not in Scotland.

Swanseajack

Oh, thanks so much, that's really helpful, and yes, she's monthly paid. I'll perhaps have a little chat with her re budgeting for the new tax year…

Thanks again, and appreciate your speedy response.

Woodstok2000

As above, but she'll also have NI at about £50 per month, so her pay will go down by about £174 per month from April, ignoring any other reductions.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81910492#Comment_81910492

I didn't mention NI as she will already be paying that this year.