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Will I pay tax?!

1 reply

Hairybaker · 05/09/2022 14:53

Posting for traffic… this may be a stupid question so forgive me if so. Leaving my current role (£40k per annum) and just want a part time job approx 20 hours a week at £12ph. It’s under the usual threshold but because I’ve earned at the higher salary since April will I pay tax etc on this new part time role?!

OP posts:
lanthanum · 05/09/2022 15:25

Your total tax for the financial year will be based on your total earnings for the financial year. Un until now, you will have been taxed on your higher income on the assumption that your income would remain the same all year. Effectively, your personal allowance will have been divided into 12. Now a twelfth of the personal allowance will be off-set against your new salary. If your new salary is below that amount, you'll start getting tax back. It should all happen automatically through the PAYE system, but it may be worth doing a tax return next May just to be absolutely sure, especially if there are any other complications.

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