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I have a new job after being off since end of March 2022. I left my last job due to family commitments etc.
Back on the treadmill in a couple weeks. Tax.... Do I now not pay tax on my tax free allowance until the end of the FY divided by the last 3 months?
Trying to pay off some debts and this knowledge would be useful in our plans
PAYE is largely based on the assumption that your earnings will be split evenly over 12 months. So it’ll depend how competent your new payroll department is..you might end up paying it and claiming it back..
You may be on an emergency/ Day 1 tax code to start with which will tax you as if you have used allowance through the year, depends how efficient your new employer is at setting you up, etc. They / the tax office won't know until they're told what your prior earnings and tax was (officially, not enough to just tell them IME)
But your yearly allowance is what it says so if you earned nothing from Apr 22 to now, you have your full allowance £12.5k or whatever it is to use in the next 3 months.
If you are taxed in Jan, it should then be sorted automatically and get it all repaid in Feb
Sounds like you’ve not had taxable income for 22/23 in which case you will only pay tax / NI based on pro rata salary for new employer. It’s worth downloading the HMRC app to determine if anything for 22/23 on file and this will also give you tax code and tax free allowance. You can then work out likely salary and if any tax payable.
Why not call HMRC and ask them?
Agree with theotherjonv. Id say youll be put on an 'emergency' tax code and pay 1/12th of yearly tax in January salary/payroll.
It will then get refunded in Februarys payroll once the system sees you have your allowance remaining.
frankconway
Full Member
Why not call HMRC and ask them?
I was just wondering but you have a point 🙂
If you do the online chat thing they’re very helpful and less hassle than waiting on the phone.
I’ve had them update my earnings/tax code on that to fix a similar issue to what you describe too (I only worked some of 2021).