Any idea why I’ve randomly paid tax this month?

[Fuckyousanta]

I earn under the threshold, pay to date is £6874.33.

Just got this months payslip and I’ve paid £49.47 in tax

I really needed that money, tax code is 847 CUMUL, does that mean anything to anyone?

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Tax is not usually on a year to date basis but is on that month so if you got a bit more this month it’s assumed that’s what you earn each month and you’re taxed accordingly. You get it back at the end of the tax year (do check this happens as I’ve had to reclaim before).

Your tax code is not standard and you should have had something from HMRC explaining why it’s adjusted.

HMRC in tax codes: www.gov.uk/tax-codes

NB I am NOT a tax accountant!

Have you earned more this month. You have a very odd tax code - do you also get taxable benefits perhaps or owe tax from previous years. Normally you can earn around £800 + before you are taxed, but with your tax code it's a lot less

Normal tax code is 1185L unless you owe money or get taxable benefits

PAYE or NI or both?

Was your gross pay this month over £706?

The tax code you show permits you to earn just 8500 without paying tax in the year.

If you had been on the standard code you could have earned £11500 per year.

We are two thirds of the way through the year, so it is just possible (depending on how your earnings have worked, or when you started this job) that some tax appeared to be payable this month.

Any idea why your tax code is so low?

6874 x 12 / 9 equals just over 9k, which is more than your current tax free amount.

When I said 2 thirds, I really mean three quarters :)

I am an accountant, btw

@delurkingaj - in fact, if you don't have a 'month 1 code' tax is calculated on a year to date basis.

NI, by comparison, is calculated each individual month, unless you are a director.

I stand very happily corrected

Its possible your tax code has been split - if you had two jobs last year and not this wld explain why you don't have a full allocation of tax free earnings ringing them is good to sort this but you can also do it yourself online although its a bloody nightmare to work out how to do it

I only have one job, ive been here for over two years.

I did some overtime this month, but not much, an extra £160 odd quid

Taxable pay: 885.52
Pensionable pay: 883.41

NI: 28.32
Pension: 49.74
Tax: 49.74 (that’s the same amount as my pension?!)

Taxable benefits? I get working and child tax credits. Housing benefit and child benefit. That’s it

I think you need to investigate (by ringing HMRC) why your tax code is as low as it is.

If you have no other income to explain it, then it looks like they are trying to recover underpayments from previous years of about £500.