Should I be paying PAYE tax?

Discussion in 'Finance, Property, Law' started by chode, Feb 13, 2012.

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  1. Hi, I opened my pay slip today to see that I have been taxed for PAYE. This is the first time it has come up on my pay slip.

    Is this right? As far as i'm aware I should only be paying tax once I earn over 7450 or something similiar. To date I have only earnt around £4000 this tax year. So should I be paying tax? or is PAYE something slightly different?

    Not a big deal to be honest as it was only £9, but I was just curious as to where it came from.

    Im in civvy employment atm too also.

    Thanks in advance :)
     
  2. Really? On a military website.
     
  3. yeh in the finance section :thumright:
     
  4. Your £7450 tax-free allowance will be split between pay-days, which means, if you are paid monthly you pay tax on everything you earn above £650 (£7450/12). This is cumulative, and starts in April each year, so for the period up to the end of January, you will have to pay tax on earnings above £6200 (£620x10 months). If your total pay since April (which is shown on your pay statement) is around £6250, then it is spot on. I'm guessing you started work some time after April, in which case, you will be paying more tax from now on.
     
  5. TAX? only the little people pay tax-go off shore-all the rich and famous do, even football managers.
     
  6. Play the game, you shouldn't be too concerned about paying a little tax. After all it's going to a good cause like providing a panic alarm, a safe house and round-the-clock protection for certain vulnerable good citizens. :)
     
  7. BrunoNoMedals

    BrunoNoMedals LE Reviewer

    you need a dog first. Not the type you marry.

    Sent from my GT-I9100P using Tapatalk
     
  8. Thanks, that makes sense.

    Only thing I would say though is that my total pay is only about £3000. Does that make a difference? I also started in september.
     
  9. Yep. Only two inevitable things on earth. Death and taxes. You got taxes first. Be happy.
     
  10. sirbhp

    sirbhp LE Book Reviewer

    who said that " only the little people pay taxes " ?
     
  11. Leona Helmsley
     
  12. In that case you are being taxed on a "month one" basis, which means that your tax-free amount is not cumulative, and each month you earn over £620(ish) you will pay tax on the portion above that. This month you will have earned nearly £670 and paid £9 tax on the £45 or so over your £623 allowance.

    The good news is that you will get that (and any other tax you have paid since starting) back.
     
  13. Yeah bang on I got paid £668 or something close to that.