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Where Taxpayers and Advisers Meet

Tax code 1150L Non Cumulative

chayt1981
Posts: 2
Joined: Sun Oct 22, 2017 10:54 am

Tax code 1150L Non Cumulative

Postby chayt1981 » Sun Oct 22, 2017 10:57 am

Good morning

I have started a new job on a yearly salary of 36,000 and on my first months pay my tax code will be 1150L non-Cumulative. I'm wondering how much tax and NI will be deducted? any help greatly appreciated

Thanks

Chay

bd6759
Posts: 3072
Joined: Sat Feb 01, 2014 3:26 pm

Re: Tax code 1150L Non Cumulative

Postby bd6759 » Sun Oct 22, 2017 11:18 am


chayt1981
Posts: 2
Joined: Sun Oct 22, 2017 10:54 am

Re: Tax code 1150L Non Cumulative

Postby chayt1981 » Sun Oct 22, 2017 12:11 pm

thanks

but it doesn't give a non cumulative option

JRG
Posts: 414
Joined: Wed Feb 03, 2010 4:40 pm

Re: Tax code 1150L Non Cumulative

Postby JRG » Sun Oct 22, 2017 1:49 pm

In a non-cumulative situation, your Income Tax should be calculated on the net amount of Monthly Salary less 1/12th of Personal Allowance (i.e. £958.33).
Example: £3,000 - £958.33 = £2,041.67, which, at 20%, gives £408.30.

In all situations, your Class 1 National Insurance Contributions should be calculated on the net amount of Monthly Salary less the Monthly Primary Threshold (i.e. £680.00).
Example: £3,000 - £680.00 = £2,320, which, at 12%, gives £278.40.
In any month where your monthly salary exceeds the Upper Earnings Level (i.e. £3,750) you will pay an additional 2% on the excess amount.

Note: PAYE is usually calculated on a cumulative basis, which automatically corrects the Income Tax paid through the year.
In a non-cumulative situation, the Income Tax is not automatically corrected, so you may find that you have underpaid, or overpaid, at year end, which will then entail completing a Self-Assessment Tax Return.

SteLacca
Posts: 437
Joined: Fri Aug 07, 2015 2:17 pm

Re: Tax code 1150L Non Cumulative

Postby SteLacca » Mon Oct 23, 2017 3:49 pm

Non-cumulative taxes each week's or month's pay as though it was paid in the first week or month of the tax year (week 1/month 1 basis), with no regard to previous earnings and tax paid.

The tax payable will be exactly the same as it would be normally on the same cumulative code if your pay was the same every month.

Your tax code has no effect on NI.


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