Is furlough taxed?

[Rose1324]

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

[Justhavinganosy]

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]

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

[Titsywoo]

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

[Rose1324]

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

[Hamm87]

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

[Rose1324]

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

[islerunner]

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

[Rose1324]

My HMRC tax code is still tax-free so confused

[Comefromaway]

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

[BEANBAG765]

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]

What is your tax code?

[Rose1324]

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

[Rose1324]

Sorry i've probably been so rubbish at explaining this

[Comefromaway]

Auto enrolment pension?

[Rose1324]

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

[Comefromaway]

Are you in Wales?

[Rose1324]

Yes xx

[Hamm87]

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]

Up to the date you were furloughed

[Comefromaway]

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

[PastMyBestBeforeDate]

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

[Comefromaway]

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.