New job and paying tax

[MoonShimmer]

I recently started a new job but because they didn't put me on payroll in Time when I get paid on the 30th of this month I'll be getting 6 weeks pay which us about £1,300....am I going to get taxed on this? I really need all that money as I've gone 6 week with no wages, It seems so unfair to pay tax on it when I don't actually even earn enough to pay tax and its only because I've had to go weeks with nothing that It even equals enough to be taxed? Especially when if they had just paid me on time I wouldn't lose anything? Thank you for the help.

Did you have a P45 from previous employment?

You can earn £12570/year in 2024/25 before paying tax.

If you earn more than approx £1047 in the first pay period of the tax year you'll pay tax at 20% on approx £250 - say £50.

If you earn less in subsequent months then, provided the tax code is applied cumulatively, it'll sort itself out.

There's a risk, if it's a new job, that tax will be applied on month 1 basis until HMRC provide the normal cumulative tax code.

I had a P45 but my new job hasn't asked for it at all.

This is what's annoying, I need that money, I've not had wages for 6 weeks and only earn £903 a month normally, I shouldn't be paying any tax, I need every penny to pay what I now owe because I wasn't paid last month, even getting it back next month doesn't help me now..😔

You have only provided limited info so I can only provide a general response.

Unfortunately as April is the first month of the tax year you will only get 1/12th of the personal allowance. You may therefore pay more tax and NI.

I am sorry but had it been part way through a tax year there would have been less impact.

What info would I need to provide please?

I just don't understand how or if I'll get what I'm owed? I'll only be earning £10.8k this year so no where near the threshold and my payments will go back down to £903 next month and never rise again but it doesn't help me when I've especially worked for free as the tax will take out a few weeks of my wages?

Your P45 needs to go to your payroll department.

Should you be taxed you will receive it back as a rebate . Your tax will work out over the year .

The personal allowance is £12,570 and this is divided into 12 =£1047.50.

As April is month 1, £1047.50 is applied to your taxable pay and anything over this you pay 20% tax. In May £2,095 is applied to your taxable pay etc. and you are taxed on any earnings above this. What should happen is if you earn £903 each month you should get a tax refund until the tax paid in April has been refunded.

If I assume in April you are being paid £903 + £450 = £1,353 you will pay 20% tax on £305.50 which is c£61. You will also pay some NI.

In May your salary is £903 which is £144.50 under the personal allowance so you should receive a tax refund of c£28.90. You should then get similar in June and then any odd pounds in July.

HTH

Depends on the tax code they've applied, did they get you to fill in a P46? Although it will be resolved as soon as you have a proper tax code, not BR, OT or WK1

Your best bet is to talk to payroll now. If it's not right they have time to fix it.

They can also do an additional payment or even a loan if they choose to.

OK that makes sense, thank you so much for explaining it to me. I've been really struggling with it all since I left my old job and received my salaried pay and effectively lost it to tax and worked my last two weeks for free. It makes sense to me the way you have explained it so thank you for taking the time.

@MoonShimmer glad to help.