emergency tax?

Question

hi, i recently started my new job and got my first pay packet this week. my net income before tax is £1,025 per month. on this i was taxed £225 and paid £66 approx on national insurance. so about 30% of my wages were taken. im 19, is this the correct amount i should be paying or could i be on emergency tax? id be really grateful for any advice.

Answer 1

If your personal tax allowance has been applied, your tax code will be something like 503L. If emergency tax has been applied, your tax code will be something like BR or 0T and you will be paying 22% tax on the whole whack. Speak to you wages department or the Inland Revenue. You pay 0% tax up to your allowance, then 10% on the next £2200, then 22% tax for the next £33000. Check the Inland Revenue website http://www.hmrc.gov.uk/ for current tax allowances. By the sounds of it, you are paying emergency tax (225 is 22% of 1025). I wouldn't worry too much in the sense that if you have overpaid tax this tax year, you will be entitled to a tax refund next April.

Answer 2

Sounds as if they havnt sorted out your tax code yet so you arent getting your personal allowance taken into acount.Basically you are just paying the basic rate of tax on all the amount instead of only on part of it.On a week wage of £371 i pay £56 tax and £30 national insurance.Dont worry though as it happens when you start a new job if you didnt have a P45 to give to your new employer.It will be sorted in a few weeks and any overpayment will be refunded

Answer 3

Check your tax code on your pay-slip if they are just zero's it's probably emergency tax, i believe your number should be about 400 which means you add a nought and that's the amount you are allowed to earn per annum before tax. All the best

Answer 4

normal rate of income tax is 22%, national insurance is anything from 5 - 8%, depending upon circumstances.

It's the country we live in unfortunately.

Answer 5

if you never had a p45 then you would be emergency taxed to prevent this happening next time fill in a p46 this is what i did and mine was sorted without a problem and you will get it back anyway once you have notified them of the incorrect charges

Answer 6

emergency tax is the same as a single persons tak
all of your stoppages should be about 29 percent
wtg on your new job

Answer 7

Yes.

Answer 8

I'm no expert but it sounds like your getting screwed.