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Tax and earnings?

Discussion in 'UK Visa and Immigration Help' started by Daveyw1988, Oct 27, 2020.

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  1. Daveyw1988
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    Daveyw1988 Active Member

    So
    Can someone clear this up
    The tax free allowance is £12.500 a year... My wife started last week of august... We have worked it out she wont hit the £12.500 upto april 5 2021. So... Since shes started working shes been paying tax... Some weeks £15-£20 pound a week and some weeks around £30 as one week she earns more than another... So... What happens to all this tax is the TAX FREE allowance is £12.500
    Daveyw1988, Oct 27, 2020
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  2. bigmac
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    bigmac Well-Known Member Trusted Member

    She is on an emergency tax code. When she get her true code she wont pay tax..and she will get back any over payment...eventually.
    bigmac, Oct 27, 2020
    #2
  3. Alexnew
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    Alexnew Active Member

    As bigmac said. Check the payslip, the tax code should be 1250L. Unless your wife has 2 or more jobs, in which you can only get the personal allowance on one of the job.
    Alexnew, Oct 27, 2020
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  4. Daveyw1988
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    Daveyw1988 Active Member

    Im pretty sure that is her tax code yeh.. Just some confliction.. Some saying she shouldnt be paying tax as she wont earn the £12.500 but i thought the case was... She paid tax... Then if she doesnt hit it.. She got refunded
    Daveyw1988, Oct 27, 2020
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  5. Daveyw1988
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    Daveyw1988 Active Member

    Dont like the word EVENTUALLY.. Not from this country
    Daveyw1988, Oct 27, 2020
    #5
  6. bigmac
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    bigmac Well-Known Member Trusted Member

    my -now-wife was in the UK when i met her--in 2011. On a student visa--and working to keep her self and her family back home. in 2012 she paid a fair whack of tax until she went back in the August--when her visa ran out.
    fast forward to 2016--shes back here--we get married--fast track same day flr so she could get a job--and is earning again.
    april 2017 she gets all her tax back she paid in 2012---because she only worked 4 months of that year here. nice surprise.

    so--in your wifes case--once she gets her correct coding--you will most likely find she doesnt pay tax for a few months till it all balances out. Theres nothing you can do about it--its the way it works. Look on the positive side--shes earning--she wasnt before.
    bigmac, Oct 27, 2020
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  7. Druk1
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    Druk1 Well-Known Member

    Only two things are inevitable, taxes and death :)
    Druk1, Oct 27, 2020
    #7
  8. oss
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    oss Somewhere Staff Member

    What is her salary per annum?

    And has she worked at all in the UK this year?

    1250L is not an emergency code, if she is on an emergency code her payslip will read 1250W1 or 1250M1 or 1250X.

    If you are on and emergency code it assumes that you have been earning at that rate for the whole year, this is sorted out when HMRC notifies the employer of the correct tax code when that happens the payroll calculations change to give the money back in Payroll, if the earnings won't be enough to have been taxed at all she will probably have to apply for a tax rebate.

    It's a long time since I ran a Payroll but she will get the money back.
    oss, Oct 27, 2020
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  9. Daveyw1988
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    Daveyw1988 Active Member

    Yeh she started in last week august.. We reckon she will earn around £12000upto april 5 21..her tax code is 1250l
    Daveyw1988, Oct 27, 2020
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  10. oss
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    oss Somewhere Staff Member

    I meant has she worked prior to this job this year?

    Was the code 1250L on her first payslip in this employment?
    oss, Oct 27, 2020
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  11. Mattecube
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    Mattecube face the sunshine so shadows fall behind you Trusted Member

    she should be on emergency code as you have not had her NI number yet as it is your wife's first job in the UK since arriving here.
    1250l is the most common tax code.
    I know you've been frustrated on the NI number front but until that is sorted out your wife's tax code will not be right.
    Any joy getting the NI number?
    Mattecube, Oct 27, 2020
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  12. oss
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    oss Somewhere Staff Member

    Ok I think I have worked this out, if you think she will earn 12000 in the 7 months from start of September 2020 to the end of April 2021 then her salary is about 20571 a year, she has a real non emergency code of 1250L so she will pay no tax but she is due to pay £25.55 in national insurance per week 110.71 a month.

    She's likely not paying tax she is very likely paying her National Insurance contributions.

    If you are talking about additional deductions over and above NI then that should not be happening on a non emergency tax code and 1250L is not an emergency code.
    oss, Oct 27, 2020
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  13. oss
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    oss Somewhere Staff Member

    She will have a temporary NI number otherwise most Payroll systems would not be able to pay her, I am fairly sure that even with a temporary NI number they will deduct NI and I think that is probably the deduction that she is seeing.

    The 1250L tax code was correct as an emergency code for 2019/2020 but as far as I can see the W1, M1 and X suffixes are in use for this tax year.
    oss, Oct 27, 2020
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  14. Daveyw1988
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    Daveyw1988 Active Member

    Yep this is her first job
    Daveyw1988, Oct 27, 2020
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  15. Daveyw1988
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    Daveyw1988 Active Member

    And yeh shes just sent me her payslip.. Definitelt 1250l and still no luck with ni either.. Yeh frustrated is far from the best word i would use
    Daveyw1988, Oct 27, 2020
    #15
  16. oss
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    oss Somewhere Staff Member

    Are there NI deductions on the payslip?
    oss, Oct 27, 2020
    #16
  17. Daveyw1988
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    Daveyw1988 Active Member

    Yeh national insurance around £24 and tax £28...this is weekly
    Daveyw1988, Oct 27, 2020
    #17
  18. oss
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    oss Somewhere Staff Member

    This would be the expected breakdown for the year based on my earlier calculation but that was working out what 12000 in 7 months would be per annum.

    upload_2020-10-27_13-34-38.png

    Dead on 20,000 a year would give you this:

    upload_2020-10-27_13-35-26.png

    So she is being taxed on an emergency basis, once she is off emergency after she gets the official NI she will probably pay no more tax before April and then she would be due a rebate for the months she overpaid.

    Use the take home calculator here https://www.thesalarycalculator.co.uk/salary.php
    Last edited: Oct 27, 2020
    oss, Oct 27, 2020
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  19. Mattecube
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    Mattecube face the sunshine so shadows fall behind you Trusted Member

    I am aware that the tax people may of allocated her a temp number as the lady has not had any luck getting her actual number out of the system.
    As I said I believe the lady has been allocated the most common code, tax peoples wording ( I didn't call it emergency code).
    Mattecube, Oct 27, 2020
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  20. Mattecube
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    Mattecube face the sunshine so shadows fall behind you Trusted Member

    I think I've sent and you've seen this link before I would try chasing them again
    https://www.gov.uk/apply-national-insurance-number
    Mattecube, Oct 27, 2020
    #20
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