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Where Taxpayers and Advisers Meet

When will I start getting taxed??

Ua92
Posts:1
Joined:Thu May 10, 2018 11:18 am
When will I start getting taxed??

Postby Ua92 » Thu May 10, 2018 11:29 am

Hi, I’m new to this whole tax thing as I am due to start my first real job after graduation next week. My wage is 22k per annum, I have checked on a tax calculator that I would it comes to £1833.33 per month before tax but I am aware that I will be deducted £135.76 for national insurance starightaway (correct me if I’m wrong). After national insurance deductions I get £1,697.57 a month. My question is will I get taxed straightaway? or will they wait till I earn the £11,850, which by the calculations above will be by next January. So could that mean I’ll only get taxed from January to April?

JRG
Posts:424
Joined:Wed Feb 03, 2010 4:40 pm

Re: When will I start getting taxed??

Postby JRG » Fri May 11, 2018 2:01 pm

Using your figures, you will be taxed straightaway, and your Annual Income Tax will be £2,030.

For Income Tax HMRC works on an accumulative basis. Each month your salary-to-date (STD) is used to calculate your potential annual salary (PAS), which is then used to calculate your potential annual income tax (PAIC). The PAIC is then used to calculate your income tax-to-date (ICTD). Your income tax for any month will be your current month's ICTD less your previous month's ICTD.

If your Monthly Salary is the same each month, your monthly Income Tax will be around £169.20. If your Monthly Salary fluctuates from month to month, your monthly Income Tax will fluctate too. In either case, by year end you will have paid £2,030.


For National Insurance HMRC works on an actual basis, so it is calculated on each month's salary.


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