Salary/tax amount question

[matty_doh]

hey all,

Started a new job at BAE Systems as an apprentice just under a month ago and get paid on Thursday, and according to the instructors I will get 6 weeks pay (2 weeks from September, the 2 weeks I've done in October and the further 2 weeks in October)... Now I know the amount I should be paid before tax - but apparently there is a tax free allowance up to a certain amount, and as this is my first 'recognised' employer (IE, not working on markets etc.) I have not used up any of this supposedly tax free income.

So, my question to the floor - is what people are saying about not being taxed correct? (If it makes any difference, I'm 18 - was 17 when I first started)

[BigAlinEmbra]

Unlikely that you won't be taxed, but it depends how sophisticated your PAYE system is, and more importantly the chimp turning the handle.
Chances are you'll be entered onto it as if you are earning your current pay forevermore, and that will be the assumption when taxing you.

Eg say you get paid a grand a month for the 3 months, then it will assume you are earning £12k and are being taxed accordingly.

However if you only work there 3 months, and don't do any more work this tax year, then you're entitled to some tax back.

Unless you're earning a pittance, then NI will be getting taken off, and as long as there are no timing adjustments in the pay then you'll see none of that back. Most people view NI as tax, so don't count on seeing your gross pay as your take home.
Rough calculation would be to bank on losing a third of your gross pay.

[spikeyhead]

If they've sorted out their payroll properly then you won't be paying tax for the first few months. You've started half way through the tax year so have the first six months of your tax allowance to use up before you start having to hand over some to the taxman.

Set aside in a savings account 1/3 of your income until you start paying tax, that way it won't come as a shock round xmas when the taxman finally gets to steal a large chunk of your earnings.

[anonymous-user]

It will have nothing to do with your employers payroll system or who 'turns the handle'. it will depend on if you have a tax code, if not then the employer will apply an 'emergency code' with the annual tax free pay proportional to the weeks being paid, then when you get a tax code you will get the tax free pay from April to Sept, so you will get the tax back, if you havn't done so get a tax form and get a tax code.

[J5]

Did you have a p45 when you started, or fill in a p60 or any tax related form?

[Eric Mc]

J5 said:

Did you have a p45 when you started, or fill in a p60 or any tax related form?

P60s are forms that are "filled in" by anyone. The P60 is the form received by an employee at the end of the tax year showing their salary and tax/NI deducted for the year.

The form a new employee fills in when they start a new job but don't possess a P45 from a previous employer is a P46,
As this is the OP's first job it is highly unlikely that he came to the new job clutching a P45.
Instead, BAE Systems should have asked himn to complete and sign a Form P46. This should allow him to be allocated a correct 2009/10 PAYE Tax Coding ensuring that the correct PAYE is deducted from his salary.

[J5]

Eric Mc said:

J5 said:

Did you have a p45 when you started, or fill in a p60 or any tax related form?

P60s are forms that are "filled in" by anyone. The P60 is the form received by an employee at the end of the tax year showing their salary and tax/NI deducted for the year.

The form a new employee fills in when they start a new job but don't possess a P45 from a previous employer is a P46,
As this is the OP's first job it is highly unlikely that he came to the new job clutching a P45.
Instead, BAE Systems should have asked himn to complete and sign a Form P46. This should allow him to be allocated a correct 2009/10 PAYE Tax Coding ensuring that the correct PAYE is deducted from his salary.

Yup i meant p46, it was early and i was only half way through the morning coffee

[matty_doh]

Thanks for the replies all, I did fill in a P46 I think it was when I first started (On very first day in fact). They seem to be very 'up to it' on getting things done on time, so I'm hoping they will be the same when it comes to my pay. Thursday morning will hold all the answers anyway, when I check my bank balance

Oh, and already started saving money - Used to earning £30 a week so this is a nice step up for me. Only thing is I might end up buying a Peugeot 205 gti as a bit of a project

Edited by matty_doh on Tuesday 13th October 18:38

[BigAlinEmbra]

Berw said:

It will have nothing to do with your employers payroll system or who 'turns the handle'. it will depend on if you have a tax code, if not then the employer will apply an 'emergency code' with the annual tax free pay proportional to the weeks being paid, then when you get a tax code you will get the tax free pay from April to Sept, so you will get the tax back, if you havn't done so get a tax form and get a tax code.

LIttle bit self contradictory, no? You're saying that how somebody is set up on a PAYE system won't make a difference, then you say that the amount being paid and the number of weeks this is being paid over is a factor.

You don't necessarily get put on an emergency code if you've not got a code or P45 either. You can fill out a P46 that does the business.

[matty_doh]

Didn't pay any tax, received full pay minus NI + Pension payment, good times