Not getting taxed new job?

[SleepDreamThinkHuge]

Hi all,

I started a new job recently. Tax code is 1263L. On payslip it says taxable payable to date as £22,897. I am assuming that means how much I paid since the tax year in April 2023.

I started a new job a few weeks ago. My before tax salary is about £550 and I got £640 after tax on my first payslip. And now for the 2nd payslip I got £800 plus after tax. Why am I getting more than I am supposed to?

I do not owe any tax or HMRC does not owe me anything. This job is my only job.

Does the new job have a significantly lower salary than the previous one? It sounds like it does?

If so, that would explain why you're getting tax rebates which bump up your take home pay.

Are those figures per month? The £550 and £640?

New job is around £9-£10,000 less a year after tax.

I get paid weekly for my current job and I got paid weekly for my old job which I earnt £9-£10k more a year after tax I was there for 8 months and did not work for 6 weeks until I found this new job.

So in the six months April to say September 2023 you earned roughly £3800 a month?

And from a few weeks ago til the end of the year you will earn roughly £2500 a month?

If that's correct, the tax paid to date was deducted on the assumption that you would earn a consistent £3800 a month for 12 months. Now, you're not, and therefore there is a look ahead to the end of the tax year to work out your new annual wage, with tax being refunded accordingly, as it was paid on the assumption of the higher wage coming in for all months of the year.

Put your new salary into listen to taxman and you'll see what you should be getting each week.

It is supposed to be around £450 after tax with the tax code given. But I am not paying any tax or NI I am getting more than my salary amount before tax.

If you're on cumulative PAYE code, system will work out that weeks tax based on weekly tax tables - but also look back at the year to date to make sure you're more or less on target for the whole tax year with your tax by cross referencing your YTD pay with the pro rata annual allowances/thresholds available as at the pay date. So since new job pays so much less, it's possible that you actually have some left over allowance/lower tax band which is why the first few pays are working like this. It should get to normal soon.

Yes, you will do until you have been rebated enough to reflect an accurate amount of tax based on: old salary x 6 months plus no wages/new salary til the end of year

Basically if for example your old job was £40,000 per year and the tax due was £10,000 - this amount of tax is based on you earning £40,000 the whole year.

Because you've taken a pay cut, you've paid too much tax and therefore will get some back until it evens out.