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.