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Where Taxpayers and Advisers Meet

First job in UK

shahar.lahav.raz
Posts: 3
Joined: Tue Nov 26, 2019 6:17 pm

First job in UK

Postby shahar.lahav.raz » Tue Nov 26, 2019 6:24 pm

Hi.
I am trying to understand about allowance.
I started working 3 weeks ago and today received my first payslip. as I understand my unused allowance (12500 per annum) should be considered in my monthly salary therefore, I do not need to pay tax up until I reach my allowance. my annual salary is 45000. Am I right? Is tax calculated yearly or monthly? Will appreciate some help here.
Cheers!

darthblingbling
Posts: 290
Joined: Wed Aug 02, 2017 9:09 pm

Re: First job in UK

Postby darthblingbling » Wed Nov 27, 2019 9:15 am

The tax bandings and allowance are calculated monthly for payroll purposes.

So you should get 1/12th of the allowance and BR band monthly. But if your onboarding was done properly the bandings should be cumulative for the tax year so the previous months for the year will come into play.

Check your payslip for a tax code, hopefully it's 1250L

shahar.lahav.raz
Posts: 3
Joined: Tue Nov 26, 2019 6:17 pm

Re: First job in UK

Postby shahar.lahav.raz » Sat Nov 30, 2019 9:38 am

Thanks. My tax code is 1250L. will I need to ask for income tax refund after April 2020?

darthblingbling
Posts: 290
Joined: Wed Aug 02, 2017 9:09 pm

Re: First job in UK

Postby darthblingbling » Sat Nov 30, 2019 12:29 pm

Likely you're being taxed correctly as you would have been given the previous months bandings and allowances on a cumulative basis. See what the position is when you get your p60 after April

shahar.lahav.raz
Posts: 3
Joined: Tue Nov 26, 2019 6:17 pm

Re: First job in UK

Postby shahar.lahav.raz » Tue Dec 03, 2019 12:29 am

TX!


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