Salary and tax allowance

[usn90]

Family member has a part time job, usually £400-500 p/m

This month however they’ve done o/t and the pay will be £1098 next month, will they get anything deducted from this? It’s a one off as the other person was on furlough so the o/t isn’t usually available

[Doofus]

No

[jonwm]

Not the same but similar, my wife works part time, earns circa 9k a year, she has been doing some overtime and is earning about £1200 a month, she got taxed a fair bit last month so went on HMRC chat and they said they take tax code divided by 12 and if you go over that assume that you will be earning that going forward.
As the months go on it comes back to you apparently.
This month she earned close the last month but paid much less tax.

[Doofus]

jonwm said:

Not the same but similar, my wife works part time, earns circa 9k a year, she has been doing some overtime and is earning about £1200 a month, she got taxed a fair bit last month so went on HMRC chat and they said they take tax code divided by 12 and if you go over that assume that you will be earning that going forward.
As the months go on it comes back to you apparently.
This month she earned close the last month but paid much less tax.

Tax is cumulative. Tax your tax code (multiplied by 10), divide by 12, and then multiply that by the tax month (October is 6). If your year to date earnings are larger than that, then tax comes into play.

In your example, 5 months at, say, £500 plus 1 at £1100 = 3,600.

Assume a 'normal' tax code of 1250.

1250 x 10 = 12500 /12 = 1042 x 6 = 6252, which is greater than 3600, so tax code (free pay) has not been troubled.

[anonymous-user]

National insurance?

[Doofus]

JPJPJP said:

National insurance?

Too complicated.