What is the cut off for being taxed?

Question

Im not sure how all the tax works, but I was told that i shouldnt be taxed on my pay until i earn more than £4,500 then i can be taxed. If thats the case then ive been taxed since day one up until now.

Im not sure if this statement is true or not. or if im entitled to tax back.

Answer 1

You can earn £5030 (I think) tax free, but yes, you pay tax from day one. However, if you only earn that amount within a year then you are entitled to a refund. I think. Don't sue me if I'm wrong.

Answer 2

At the moment in the UK, for people aged under 65, the current allowance is £5035 p/a for the tax year running until april this year. After that for the tax year 2007-08 it will be £5225.

This is just the basic allowance, anythign over that will be subject to tax, dependandt on your total gross income.

Rachael is right, you can get a rebate at the end of the tax year (and get it in bang on April 1st if you can) if you have not earned more than the allowance.

The way it works on PAYE is that you get taxed at a proportional rate, so if for 4 months of the year you are earning £1200 per month, that's double the allowance, so you would be paying tax as if you would be earning that much until the end of teh tax year.

Then if for the last 8 months of the tax year, you earned nothing at all, then you can claim the tax you have already paid back. This is because you're total amount was only £4800 over the 12 months.

Answer 3

Rachel is right, at the end of the tax year, I think 5th April (if you have earned less than £5035 you can either ask for tax back form or they send it to you automatically. I used to send a form but i know someone who worked here, & then left & went back to another country & they sent her a cheque. But to be sure check with your local tax office. In anycase, ask, you have nothin to lose & everything to gain. Also I think you can ask for tax back up to 5 years. earnings(if it hasn't changed). I once got a cheque for £1000!

Answer 4

You can make up to 5035 pounds before you have to pay tax. But that is in a full tax year. They don't wait until you get to that before taxing you, they divide it up per week or per month and divide your annual pay the same way and if the pay exceeds the allowance you get taxed on it.

Answer 5

Rachael is right. The Revenue taxes your annual salary the moment you get paid. I assume you are not saying you earn less than £375 a month.

Answer 6

Death is the only escape from tax, you pay 17 1/2 percent on everything, then there is the tax on fuel. They may not get you when you die, but they get your survivors.

Answer 7

7 years after you die

Answer 8

DEATH