I was out of work until November.
I take it I (well, all of us) should be getting a letter from HMRC in the next few weeks explaining what we've paid, whether we owe or are owed?
The mystery that is tax...
- Thread starter Michael_10
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I was out of work until November.
I take it I (well, all of us) should be getting a letter from HMRC in the next few weeks explaining what we've paid, whether we owe or are owed?
No, your employer is responsible for this. At the end of the tax year you will get a form P60 from your employer which summarises what has happened during the year relating to that employment. The other source of information is your payslip (assuming you are not self employed of course).
You probably won't hear anything from the tax man unless they send you a new tax code (which you can request if your current code is wrong) or complete a tax return (which if your are PAYE with one employer is not likely to be required).
This is a good link to explain the forms, also helps if you are having any trouble getting to sleep:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10013512
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10013512
Did you earn a lot less in those two weeks than the newest week as that might explain it.
The way it was explained to me is :-
Tax Code - 605L This means you can earn £6050 a year before paying tax, however tax each pay packet is based on a percentage of that figure.
£6050/12 = £504.17 in the first pay packet before you would be taxed if paid monthly and
£6050/52 = £116.35 in the first pay packet before you would be taxed if paid weekly.
So say you earn £200 in a week or £850 in a month you would obviously pay tax that week/month, then the next pay packets tax would be calculated based on your new non-taxable allowance which would be
Weekly - £6050 - £200 / 51 = £114.70 is your earning limit week two before you would be taxed.
Monthly - £6050 - £850 / 11 = £472.73 is your earning limit in month two before you would be taxed.
If in week/month two you then earned less than the the £114 or £472 you wouldnt be taxed that month.
This is the reason everybody pays tax even students, if they earn a certain amount in a pay period, but if over the course of the whole year you earn under the £6050 (or whatever your tax code allows, you would get the tax back).
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I earned £49.50 and £55 for the two weeks I wasn't taxed, and this week I earned £110 but only received £88, should that make a difference?
It would fit with my explanation yes, as it would put £55 below your pay period allowance and £110 above your pay period allowance.
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Thanks
that really helps to clear things up! So next week, when I'm due to get about £120, will tax be taken off that?Thanks
Sounds likely. Two things are certain in life, death and taxes.
My advice would be to check your tax code on your payslip as that is what drives how much is deducted.
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But as long as what I earned at McDonalds combined with what I earn at Boots up until April is less than £6000, then any tax will be refunded?
Yes, you can earn up to £6,475 in the 2010/11 tax year ending at the start of April 2011. You will still have to pay some National Insurance though.
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When my sister worked at Boots she kept having problems with being taxed.
Probably making up for the fact that the private equity company that owns Boots has reduced its tax bill from over £100m a year to around £14m by relocating to a post office box in Switzerland.
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Turns out I wasn't taxed at all, just paid for the week before, funny thing is I was paid for 16 hours when I only did 10...