GF-91
Banned
Registered: 8th Jul 09
Location: Burnley!
User status: Offline
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Now- I started work in June for asda and in my first wage I got taxed (as you do) ; however I was led to believe I won't get taxed for my first 5k- true or false?
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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you will be taxed based on an assumption that you'll earn that much for the entire year. They don't wait until you've reached the threshhold, then kick the tax in; they spread it out. If you don;t reach the threshhold, you can claim back any tax paid
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Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
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As LL said, its based on you going over a certain amount during the pay period (so if you go above the £6475 (/12) Lower earning Limit a month you'll be taxed).
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GF-91
Banned
Registered: 8th Jul 09
Location: Burnley!
User status: Offline
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Oh okay.
Thanks guys.
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emicen
Member
Registered: 26th Jul 10
Location: Glasgow
User status: Offline
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You'll get taxed straight away but may get some back via rebate (you'll get it back quicker if you ask for it  )
PAYE works on the assumption you earn the same all year through. You can earn ~£124 a week income tax free and £110 NI free, after that they'll tax you on it. But doing it that way will tax you too much when you've missed the first 2 months of the tax year (I'm assuming you didnt work April-May).
Just dont spend the rebate before you get it. Been there, done that, wasnt funny!
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