Question on taxWatch

#1
I've just started work for the first time since I started my degree three years ago, so unfortunately I don't know my tax code or anything. I had to fill in a P46 if that helps.

I earn 17000 before tax, and that's ~13500 after tax. Am I right in thinking that that 13500 gets divided by 52 and then 5 to work out a daily amount? If so, I've worked 13 days, which would be 850 before tax and 675 after tax. I've been paid 825, so what's happened there?

Also, how does my tax year work? Say between now and April the 6th or whenever, I earn £9,999; will my tax-free earnings reset to 0 in April when the new tax year begins? Or does my tax year just begin and end from when I started working 3 weeks ago? I'm assuming it can't be the former, because I could earn 20k untaxed like that, and I'm sure the government won't be so forgiving.

Thanks for any help. I had a look online first but didn't really find anything.
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4 years ago
#2
They might have divided it by 52.2 weeks rather than 52.

Have you also taken into account NI contributions?

But basically because you haven't earned anything in this tax year to date, it is using up your personal tax allowance. Your payroll department and HMRC can see you won't earn £10,000 before the end of the tax year so will not deduct anything from you unless your salary goes up.

Your tax allowance will reset on 6 April 2015, so you will be entitled to a personal tax allowance of £10,000 anything you have earned between 6 April 2014 to 5 April 2015 and then it goes up to £10,500 for the tax year 6 April 2015 to 5 April 2016.

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#3
(Original post by J-SP)
x
I just used an online tax calculator I found to try and figure it out. This is what it said:

But obviously that's for a full year, so it's not applicable to me.

Diving by 52.2 gets me a bit closer to the 825 I've been paid, but its around 845 instead of 850, so it's not much different.

I thought the 10k was also exempt from NI? If I use that chart to work out my NI for 1 day and then 13 days, it works out as around £50. Though, if we say I'm half way through the tax year and I thus pay half the NI I would in a year, that'd make it around £25 and explain the £25 missing from my pay. Think that's right?

Good to know it will reset, thanks for the info.
0
4 years ago
#4
You pay NI if you earn more than £156 a week - it's an as you earn calculation rather than you get a certain allowance like you do with tax

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