Donate SIGN UP

When will I pay tax - employed

Avatar Image
badnews | 18:48 Fri 10th Apr 2009 | Jobs & Education
6 Answers
Hi, I have just started a new job, I have not worked for a couple of years I have not claimed any benifits either as my ex husband supported me. Will I pay tax on my first wage?
Gravatar

Answers

1 to 6 of 6rss feed

Best Answer

No best answer has yet been selected by badnews. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
IR advise employers to with-hold third of PAYE till your tax rate has been confirmed. Any over tax payments will be refunded.
Question Author
Thank you,

I thought you had to earn so much before you paid tax, but like you said, I will pay it from the beginning, I am presuming then, that I will be due a tax rebate next April for any tax overpaid?



HMRC do no such thing.
As a new employee you will either have a P45 from a previous job or you fill in a P46. Depending what boxes you tick on this form depends what HMRC tells employers to do, but the worst that happens is that you get a BR tax code. This means that tax is docked at a basic rate of 20%, not one third as suggested above.
Once you get a tax code assigned, the correction to your tax position will automatically happen.
Question Author
ok I havent got a P45, but I have filled in a p46. Dont mind paying 20% at first, as long as its sorted out over the year.
Assuming your slary is over �6475 you should expect to pay the same tax as anyone else on your salary . It's a new tax year now so the fact you earned nothing last tax year isn't relevant to this tax year. The tax will be based on your annualised salary less your personal allowance and the tax payments will be spread over the year. NI is also payable. See this online calculator
http://listentotaxman.com/index.php?married=0& widow=0&blind=0&student=0&c=0&yr=2009&age=0&ad d=0&code=&ingr=0&time=1&chart=0&payrise=0&exNI =0&gr=0&vw[]=yr&vw[]=mth&vw[]=wk&pension=0
Question Author
Thankyou, I have saved that link.

1 to 6 of 6rss feed

Do you know the answer?

When will I pay tax - employed

Answer Question >>