Income tax employment

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Bendy1224
Bendy1224 Posts: 50 Forumite
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in Employment, jobseeking & training
Income tax

Hi all,


Not sure if anyone can explain how income tax works for PAYE.

For some reason I am being taxed on a 1250L W1M1 Code.

I noticed I never paid any tax on one of my previous jobs which I was paid around June 2019 I would say.


How do I know how much tax I should be paying if I need to be paying any tax at any given pay period.

Hope I’ve been clear here .... :money:

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  • phill99
    phill99 Posts: 9,093 Forumite
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    That's an emergency code.


    Have you given your employer a P45 from your last employment?
    Eat vegetables and fear no creditors, rather than eat duck and hide.
  • engineer_amy
    engineer_amy Posts: 803 Forumite
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    That's a standard code when the employer hasn't received either a P45 from the employee, or a coding notice from HMRC yet.


    all it means is that it is a non-cumulative code. Each pay period is taken on its own to calculate tax due, rather than taking into account your year to date earnings and tax paid.


    it avoids you underpaying tax, or receiving a large rebate that you may not be due and have to pay back later.


    If you never paid tax on the job in june, then it is probably a smart idea to stay on the W1M1 code until HMRC write to you and your employer, otherwise the payroll software wont be able to calculate the tax correctly.


    I like to use the site www.listentotaxman.com for quick calculations on tax, NI etc. it wont take into account your year to date earnings and tax, but will give you a rough idea of the tax you should be paying based on your wage each week/month
    Mortgage = [STRIKE]£113,495 (May 2009)[/STRIKE] £67462.74 Jun 2019
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    HMRC is going to be a better bet than anyone here; nobody on this forum has your records. Have you looked online at your personal tax account? https://www.gov.uk/government/publications/your-personal-tax-account/your-personal-tax-account
  • Bendy1224
    Bendy1224 Posts: 50 Forumite
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    Thank you all for your replies and sorry it’s taken a while for me to reply.

    After phone call after phone call with the tax office and the payroll department, I’m pleased to say it’s all been sorted hopefully, without not going into too much detail boring you all lol.

    I will soon know this Friday if it has when I have been paid.


    What I don’t understand is the personal allowance business and what I can earn tax free.

    I know I’ve earned below 1250 to date, which is the allowance for the year isn’t it?

    I am aware you can’t use your allowance all in one go, but how does it work???? Arghhh!

    Is it that it starts off at 1250, but then just say you earn £300 one week, is that taken off the 1250, and then so one until you have used your allowance???
  • p00hsticks
    p00hsticks Posts: 12,825 Forumite
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    edited 4 December 2019 at 1:37AM
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    Bendy1224 wrote: »
    What I don’t understand is the personal allowance business and what I can earn tax free.

    I know I’ve earned below 1250 to date, which is the allowance for the year isn’t it?

    I am aware you can’t use your allowance all in one go, but how does it work???? Arghhh!

    Is it that it starts off at 1250, but then just say you earn £300 one week, is that taken off the 1250, and then so one until you have used your allowance???

    As a starting point your allowance is basically averaged out across the year so that - if you earn the same each week/month - you'll get deducted the same amount of tax in each pay packet.

    So if you are payed monthly, and you're on the standard allowance of £12,500, then each month tax is applied on anything you earn above £1,041 (= £12500 / 12).

    If you are paid weekly. then you get 1/52nd of your allowance (around £240) allocated each week.
  • Bendy1224
    Bendy1224 Posts: 50 Forumite
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    Hi P00hsticks,

    Thanks for your post.

    I have sort of got an idea now of how I stand with my taxes going forward with (PAYE).

    So basically if it comes to the end of the year and haven’t earned 1250 in income, or paid too much tax for the year, then I’ll get it back as a rebate from tax office ? :-)
  • penners324
    penners324 Posts: 2,740 Forumite
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    Get access to your personal tax account with HMRC. 1 of the posts above had the link. There is also an app.

    You're better off staying on a tax code 1250LX (X is for the W1/M1) until HMRC tell you differently.
  • Bendy1224
    Bendy1224 Posts: 50 Forumite
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    Hi all,

    thanks for all your replies.

    tax code all sorted now, which i am chuffed after all the hassle .
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