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Tax?!

3 replies

mylittlenugget · 14/06/2019 12:12

Stupid question alert, I probably should know this but I've never had to rely on exact amounts of money before and so being taxed hasn't really affected me before.
I have two jobs, one with a tax free limit of £7280 and one with a limit of £5220. I haven't earned anywhere near these amounts yet.
My question is will I still pay a small amount of tax each month or do I only pay tax when I've got to those figures? I have the letter in front of me but it's confusing me

OP posts:
madrush · 14/06/2019 12:16

If you get paid monthly, you will pay tax only when you earn enough to reach 1/12 of those thresholds on your letter in a month. Don’t forget NI thresholds won’t be the same so you may get a deduction for NI if you reach that threshold (normally about 8600 per year)

Comefromaway · 14/06/2019 12:18

Your Personal Allowance of 12,500 has been split between your two jobs.

Tax is cumulative. When you are paid the system will assume that your monthly or weekly pay is going to be the same for the entire 12 months . So if you are going to be earning under 12,500 in total for the entire tax year then you shouldn't pay any tax. If your annual pay is going to be over that amount then you will pay some tax each month.

In job no 1 you will be able to earn roughly £606 per month tax free and in job 2 roughly £435 (assuming your monthly pay is the same each month).

mylittlenugget · 14/06/2019 12:18

Thank you!

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