when do you pay tax after starting work?
Discussion
My Daughter started work in September last year for a large company.
So far she has paid no income tax, she has been paying National Insurance.
I have it in mind, you used to pay "emergency tax," from day 1 then you got a rebate or reduced code when they worked it out properly.
When she gets paid this month on the 23rd, it will probably take her over the personal allowance limit.
So the question, is, is this normal now that you dont pay any income tax until you go over the limit, how will they work it out next tax year, when she will work a full year and expect to earn £20000?
Just getting worried that she will get hit by a big tax bill at some point!
So far she has paid no income tax, she has been paying National Insurance.
I have it in mind, you used to pay "emergency tax," from day 1 then you got a rebate or reduced code when they worked it out properly.
When she gets paid this month on the 23rd, it will probably take her over the personal allowance limit.
So the question, is, is this normal now that you dont pay any income tax until you go over the limit, how will they work it out next tax year, when she will work a full year and expect to earn £20000?
Just getting worried that she will get hit by a big tax bill at some point!
Stevemr said:
So if she goes over 10600 this tax year month, they will charge her 20%.
Stevemr said:
that can't be right surely?
The magic of PAYE, you get your allowance in monthly lumps.Next year (subject to any changes in tomorrow's budget) she'll pay income tax on any earning in the first month over (11,000/12) so over £916. (11,000 rather than 10,600 tax next year) . If on 20K then say 1666 gross, pay 20% on 750. Tax 150, net now 1516. Some payroll might give the old tax level in April and "correct" in May.
This year by September she'd had an PAYE allowance of 6*10,600/12, so £5300, adding 883pcm to this allowance. So this month gets the full 10,600 and she may pay tax depending on actual total pay this year.
I am Not an accountant, but had the opposite this year, large sum at beginning of tax year.
Stevemr said:
My Daughter started work in September last year for a large company.
So far she has paid no income tax, she has been paying National Insurance.
I have it in mind, you used to pay "emergency tax," from day 1 then you got a rebate or reduced code when they worked it out properly.
When she gets paid this month on the 23rd, it will probably take her over the personal allowance limit.
So the question, is, is this normal now that you dont pay any income tax until you go over the limit, how will they work it out next tax year, when she will work a full year and expect to earn £20000?
Just getting worried that she will get hit by a big tax bill at some point!
how much as she earnt since september ? So far she has paid no income tax, she has been paying National Insurance.
I have it in mind, you used to pay "emergency tax," from day 1 then you got a rebate or reduced code when they worked it out properly.
When she gets paid this month on the 23rd, it will probably take her over the personal allowance limit.
So the question, is, is this normal now that you dont pay any income tax until you go over the limit, how will they work it out next tax year, when she will work a full year and expect to earn £20000?
Just getting worried that she will get hit by a big tax bill at some point!
was she earning anything before september ?
it is not unknown for those were were not working between the April and starting their graduate jobs to pay little or no tax as they have April- Septembers tax allowance as well as what they would earn before tax for the remainder ofthe tax year ...
as others have said unless she has earnt more than 10 600 in total by the end of this month she'll hot have earnt enough to pay tax
Stevemr said:
So if she goes over 10600 this tax year, they will charge her 20%.
When she starts full tax year then will they then average it iout over year, or will she pay nothing until she has earned !0600 then half way throught he year start paying 20%, that can t be right surely?
Next tax year her employer will apply her tax code from day 1 - as she'll be working for them from april rather than starting with april - september's allowance unused ... When she starts full tax year then will they then average it iout over year, or will she pay nothing until she has earned !0600 then half way throught he year start paying 20%, that can t be right surely?
I am truely suprised that you do not understand even the simplest PAYE principles...
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