New Job, but not worked in 8month and never took benifits.

New Job, but not worked in 8month and never took benifits.

Postby AK11 on Wed Sep 01, 2010 3:10 pm

New Job, but not worked in 8month and never took benifits.

I have not worked in 8 months and never taken any government benefits. I now have a job.

I was told that for the next 6 months I would not pay any sort of tax or national insurance.

Is this correct?
AK11
 
Posts: 1
Joined: Wed Sep 01, 2010 3:06 pm

Re: New Job, but not worked in 8month and never took benifits.

Postby AJHenderson on Wed Sep 01, 2010 3:40 pm

Depends on how much you are earning, you would have 8 months of your personal allowance not used.

Personal Allowance is 6475 for the year or £539 a month
AJHenderson
 
Posts: 100
Joined: Fri Nov 06, 2009 9:08 am

Re: New Job, but not worked in 8month and never took benifits.

Postby section 44 on Fri Sep 03, 2010 2:12 pm

You may not have worked for 8 months but remember that the 2010/11 fiscal year started on 6 April 2010 (hence you haven't worked for 5 months). This means that effectively when you get paid (at the end of month 6), in addition to 1/12 of your tax code, payroll will also take into account 5 x 1/12 of your tax code (accrued from the 5 non-working months). Any excess is effectively rolled forward if your earnings don't fully utilise this allownce. You could earn £3237 tax free in September.

AJHenderson wrote:Personal Allowance is 6475 for the year or £539 a month


This assumes (likely reasonably) that your tax code is based simply on your personal allowance.
section 44
 
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