First employment and exemption from taxes?

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Silent0239
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Started my first job a few weeks ago and I have been told by a handful of relatives this.

For the first 6 months of employment, I do not need to pay taxes or National Insurance (NI) contributions, or more accurately, they are not deducted from my salary.

I looked it up on my local council's website however there is no mention of such thing. I did some digging and there is barely anything on it. There have been some forum discussions but they were from 2015, which very well may be inaccurate given the amount of time that has passed.

To what extent is this information true - will I be exempted from paying taxes and NI for the first six months?
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Good bloke
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(Original post by Silent0239)
To what extent is this information true
It is completely false, and has never been true.. What is true is that you are entitled to a full year's personal tax allowance even though you earn for only half the year. This means that you will not pay income tax on the first £12,500 of your earnings. NI is calculated on a weekly or monthly basis, dependent upon how you are paid. And you may pay too much income tax and have to claim back any overpayment.

Your family members appear to be very ill-informed.
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Silent0239
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(Original post by Good bloke)
It is completely false, and has never been true.. What is true is that you are entitled to a full year's personal tax allowance even though you earn for only half the year. This means that you will not pay income tax on the first £12,500 of your earnings. NI is calculated on a weekly or monthly basis, dependent upon how you are paid. And you may pay too much income tax and have to claim back any overpayment.

Your family members appear to be very ill-informed.
That's very helpful - that has crushed my hopes of having a bit more cash - thank you.
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Emma:-)
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(Original post by Good bloke)
It is completely false, and has never been true.. What is true is that you are entitled to a full year's personal tax allowance even though you earn for only half the year. This means that you will not pay income tax on the first £12,500 of your earnings. NI is calculated on a weekly or monthly basis, dependent upon how you are paid. And you may pay too much income tax and have to claim back any overpayment.
Exactly.
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Emma:-)
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(Original post by Silent0239)
That's very helpful - that has crushed my hopes of having a bit more cash - thank you.
If you are going to earn under the £12,500 this tax year though then you shouldnt pay any tax (and if you do get taxed by mistake then call the tax office to get it sorted).
The tax year usually runs from the beginning of april.
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Silent0239
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(Original post by Emma:-))
If you are going to earn under the £12,500 this tax year though then you shouldnt pay any tax (and if you do get taxed by mistake then call the tax office to get it sorted).
The tax year usually runs from the beginning of april.
Interesting... So given that up until 6th April 2020 my annual earnings do not exceed the £12500 mark I am exempt from tax?

I apologize for my cluelessness, I am extremely green when it comes to adulting at this level...
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Emma:-)
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(Original post by Silent0239)
Interesting... So given that up until 6th April 2020 my annual earnings do not exceed the £12500 mark I am exempt from tax?
If you are going to earn less than the £12,500 before the end of the tax year then no you should not be taxed.
You may get emergency taxed on your first pay day though. But a call to the tax office sorts that out and from experience you usually get it back next pay day.
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threeportdrift
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(Original post by Silent0239)
Started my first job a few weeks ago and I have been told by a handful of relatives this.

For the first 6 months of employment, I do not need to pay taxes or National Insurance (NI) contributions, or more accurately, they are not deducted from my salary.

I looked it up on my local council's website however there is no mention of such thing. I did some digging and there is barely anything on it. There have been some forum discussions but they were from 2015, which very well may be inaccurate given the amount of time that has passed.

To what extent is this information true - will I be exempted from paying taxes and NI for the first six months?
The universal presumption the taxman works on for everybody is that you are going to be liable to pay the basic rate of tax.

If you know that you aren't going to earn over £12,500 in a tax year, then it's up to you to ring the HMRC and have a conversation with them about your salary or hourly rate the the hours you work. They will then change your tax code so you don't pay tax.
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