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Is furlough taxed?

(23 Posts)
Rose1324 Fri 01-May-20 22:34:10

I get the first payment on Tuesday and just checked my pending and from what i've been told i'm having £350 seems to have disappeared,
I wasnt taxed before this as i wasnt earning enough

OP’s posts: |
Justhavinganosy Fri 01-May-20 22:40:06

As far as I’m aware it is being taxed but if you don’t earn enough to be taxed normally you shouldn’t be taxed on the furlough. Maybe check to see if your tax code has been changed for some reason?

Mightymurphy Fri 01-May-20 22:41:48

Yes, tax, NI and pensions all deducted from my salary.

Titsywoo Fri 01-May-20 22:43:17

Yes it is all taxed as normal. Are you on 80%?

Rose1324 Fri 01-May-20 23:43:04

Yes on 80%. I can't see what's been taken out yet as it's only on my pending transactions,
But i've worked out my monthly average earnings myself and it should be about £1300.
Yet it says on my email - gross amount '1020' subject to the usual reductions, so i'd understand if this was 80% of the 1300,
But from my pending transactions, it seems 80% has been taken from the 1020

OP’s posts: |
Hamm87 Fri 01-May-20 23:47:34

It going off what u earned same period last year if you have been with a company over a year

Rose1324 Fri 01-May-20 23:48:43

I started with them in September so should be average monthly earnings and my HMRC claims i have made £8650 since that time so an average monthly earning of £1000 makes no sense

OP’s posts: |
islerunner Fri 01-May-20 23:53:12

It's a new tax year so you will now be paying tax on your gross salary over around 1k per month

Rose1324 Fri 01-May-20 23:55:34

My HMRC tax code is still tax-free so confused

OP’s posts: |
Comefromaway Fri 01-May-20 23:57:49

We are in a new tax year now so your tax code will be cumulative.

BEANBAG765 Fri 01-May-20 23:58:09

Once you get your payslip, check your tax code. If your tax code is 1250L, all is normal.
As you started mid year lady year, you were perhaps under the Personal allowance £12500. That is why you probably were not taxed last year.

Comefromaway Fri 01-May-20 23:58:50

What is your tax code?

Rose1324 Sat 02-May-20 00:03:39

C1250L is my tax code,
I will just have to wait for my payslip as my HMRC says i've been taxed £60 and NI £55,
So i know where £110 of it has gone, just wondering where the other £100 or so is but i'll wait until i see my payslip as i find all this so confusing

OP’s posts: |
Rose1324 Sat 02-May-20 00:04:35

Sorry i've probably been so rubbish at explaining this

OP’s posts: |
Comefromaway Sat 02-May-20 00:04:38

Auto enrolment pension?

Rose1324 Sat 02-May-20 00:06:07

Ah pension yes that'll be another thing! That's usually £40!

OP’s posts: |
Comefromaway Sat 02-May-20 00:06:17

Are you in Wales?

Rose1324 Sat 02-May-20 00:06:36

Yes xx

OP’s posts: |
Hamm87 Sat 02-May-20 00:07:11

Ok take your wage since you started in September then divide by number of weeks you have worked as it's worked out weekly not monthly

Hamm87 Sat 02-May-20 00:07:27

Up to the date you were furloughed

Comefromaway Sat 02-May-20 00:08:32

Reason I asked is a C tax code is only for those in Wales.

PastMyBestBeforeDate Sat 02-May-20 00:08:44

They might be applying emergency tax codes because the tax system hasn't caught up with the furlough procedures.

Comefromaway Sat 02-May-20 00:18:09

The OP’s employer should be using the exact same tax code as she was on before 5 April unless told otherwise by HMRC. An emergency BR tax code may get be used when she first started back in Sept but shouldn’t be used now.

OP, on a gross monthly salary of 1,020 I wouldn’t expect you to be paying tax. The monthly threshold is 1,041. So something does seem wrong. Have you got a personal online tax account you can log into?

You need to check that during the changeover to the new tax year a coding error hasn’t been made.

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