The personal allowance for this year is £10,600. It will be £11,000 next year.
The PAYE system works by spreading your allowance across the year, so your take-home pay doesn't vary wildly. So you get 1/12 of the allowance each month. IF you still haven't earned £10,600 by the time the tax year ends on 5 April, then you will get a refund once HMRC have checked your employer's calculations.
You are being taxed either because your tax code is wrong, or your RATE of pay will amount to more than the allowance in a full year.
They look at your income for the whole year. If you were earning 2000 a month, by your logic you wouldn't pay tax until the 6th month. So they take the personal allowance ad divide it by 12. If you earn more than that figure you will pay tax from month 1. If you have paid too much tax at the end of the year you will get a refund.
Yes. If you are employed, it will work out through the payroll when you get a tax code. When you are taken on and don't have a P45 they put you on a 'week 1/month 1 basis' which means you pay tax as though it is the start of the tax year. If you are self-employed you need to make a claim to HMRC after the end of the tax year.
The system spreads your allowance across the whole year. You get the use of one twelfth of the allowance each month. If your rate of earning will take you over the personal allowance before April the tax load is spread across the year.
So if you are earning more than about £883 per month you will be paying income tax (and National Insurance Contributions).
£10.600 until April then it rises to 11K. What is your tax coding it should be 1060L. Your employer needs to get your coding from HMRC then you will get a refund.
Answers & Comments
The personal allowance for this year is £10,600. It will be £11,000 next year.
The PAYE system works by spreading your allowance across the year, so your take-home pay doesn't vary wildly. So you get 1/12 of the allowance each month. IF you still haven't earned £10,600 by the time the tax year ends on 5 April, then you will get a refund once HMRC have checked your employer's calculations.
You are being taxed either because your tax code is wrong, or your RATE of pay will amount to more than the allowance in a full year.
They look at your income for the whole year. If you were earning 2000 a month, by your logic you wouldn't pay tax until the 6th month. So they take the personal allowance ad divide it by 12. If you earn more than that figure you will pay tax from month 1. If you have paid too much tax at the end of the year you will get a refund.
Yes. If you are employed, it will work out through the payroll when you get a tax code. When you are taken on and don't have a P45 they put you on a 'week 1/month 1 basis' which means you pay tax as though it is the start of the tax year. If you are self-employed you need to make a claim to HMRC after the end of the tax year.
The system spreads your allowance across the whole year. You get the use of one twelfth of the allowance each month. If your rate of earning will take you over the personal allowance before April the tax load is spread across the year.
So if you are earning more than about £883 per month you will be paying income tax (and National Insurance Contributions).
£10.600 until April then it rises to 11K. What is your tax coding it should be 1060L. Your employer needs to get your coding from HMRC then you will get a refund.
yes