Not paid any income tax.

[KendraTheVampyrSlayer]

Wasn't sure if this should be here or in Money. 🤔

I started a new job last month, it's full time and just above minimum wage. I started mid-September so last month I only got 2 weeks' pay, so didn't pay any income tax. I've just had this month's wage slip and I still haven't paid any income tax. I've paid NI, and I'm above the income tax threshold so I don't understand.

This is my first job in over 20 years, could that have something to do with it? My tax code is 1131N.

As you’ve started so late in the tax year it might be on the cumulative that you won’t pay tax.

Is it not just that you havent earnt enough this tax year yet?

I would think it’s because at just over minimum wage you won’t earn enough before the end of the tax year to need to pay tax.

If it's just above minimum wage then you won't earn enough between now and March to hit the tax threshold (which is a bit over £12,000).

Ah ok, that makes sense. Thank you! I haven't a clue about tax so was stumped.😂

I had 3 months between jobs last year and didn't pay any tax for 1st 2 months l wouldn't worry about it. I did question payroll lady and she said it was because l finished my last job in March and started new one in June.

The income tax threshold is about £12k. You won’t have earnt that yet.
Your tax code also means you are using the marriage tax allowance.

That code means you can earn 11310, before you pay tax, which is not correct for a single woman. You might want to talk to HMRC about getting that adjusted unless you are married of course

You can earn £12750 in a tax year (Apr-Mar) before.paying tax. So you're probably not due to pay any this year, if you weren't working before.

Ah, ok, I thought it was a bit of a weird code.

Thanks, I am married.

I was surprised when this happened to me too!

I highly recommend working out what your net pay will be once you start paying tax. Put the excess in to either your pension or savings. Don’t get used to that amount coming in to your account!

Thanks, I was a bit giddy to be getting more than I expected. 😂But, it would be sensible to put it in a savings account.

Yup I’m assuming you have your husband on it. So you can earn 11k ish before paying tax but his allowance will be about £13k ish. Which would have benefited you before you started working full time - and possibly this tax year too.

As op have said, with that tax code you will be able to earn £11,310 tax free in the 24-25 tax year. The software usually works by allocating 1/12 of that to each month in the tax year. If you start part way through a tax year, and it’s a cumulative code (ie it doesn’t say W1 M1) then you start with 1/12th of your allowance x the number of months that have already passed since the start of the tax year. So in Sept you would have been able to earn 6 x (11,310/12) before paying tax. This month you can earn 7 x (11,310/12) in the year to date before paying tax. Each month you get another 1/12th added on and anything earned over that in the year to date will be taxed.

That carries on until next April when the slate is wiped clean and you get a fresh allowance. So, depending on how much you earn over the next few months, you might not pay tax until next April.

NI is calculated differently. It’s 8% of any earnings over the threshold (£1,047.50) in each month.

Tax is now worked out "real time", well close to it, so you shouldn't have the shenanigans you were expecting to emergency tax and then rebate etc