I switched agencies a few weeks ago and apparently I’ve ticked something wrong because the one I’m currently with isn’t deducting any PAYE tax (I’m correctly shown as paye) from me. While this has resulted in some ridiculous weekly payslips (£550 to 650+ take home) which I quite enjoy at the moment, a day will surely come when the tax people will send me a letter asking for it back and then I’m going to be f-ed, aren’t I? It’s not an umbrella scheme or anything (money in the bank is credited from the agency itself not a 3rd party payment operator like most other agencies)
In addition they’ve postponed my enrollment into a pension scheme until the end of next month as allowed by law as they claim so no pension % either.
Harry Monk:
Have you spent any time not working and not claiming benefits since the beginning of the tax year?
Yes - 2 weeks on a leave and 1 when I was doing my class 1 but how would this agency know that?
HMRC tell the agency how much PAYE to deduct. Your annual tax free allowance is worked out over 52 weeks so if you have had weeks with no income then your tax free allowance may be adjusted in subsequent weeks so that you pay no tax.
Harry Monk:
HMRC tell the agency how much PAYE to deduct. Your annual tax free allowance is worked out over 52 weeks so if you have had weeks with no income then your tax free allowance may be adjusted in subsequent weeks so that you pay no tax.
Aha, I see. Well, thanks for that. Now I can spend it all with a clean consciousness
ETS:
Aha, I see. Well, thanks for that. Now I can spend it all with a clean consciousness
I wouldn’t. You’ve not had so much time off that you’d not be liable for income tax this far into the tax year. Sounds like you ticked the “this is my first job” box. When they get the info from HMRC it’ll show you’ve underpaid tax.
Happened to me recently. After phoning agency, had to contact HMRC then call agency again to get it sorted.
There has been a few posts on here regarding this.
Best to sort it out ASAP so you don’t get hit with a big tax bill next year.
Pretty sure every pay slip shows how much you have earned to date.
If it shows you’ve earned over 12k and your still not paying tax then you may have a issue.
adam277:
Pretty sure every pay slip shows how much you have earned to date.
If it shows you’ve earned over 12k and your still not paying tax then you may have a issue.
£4808 to date this week to be exact. If he’s earned more than £4808 to date this tax year and paid no tax then he has a problem.
If your tax code is 1250L, this week is week 22 of the tax year
!2500 / 52 = £240.38 multiply that by 22 weeks = 5288.46 to date before PAYE tax is deducted, but there will be Nat Ins deductions
Any payments over £240.38 each week with obviously be taxed, but later in the year if your pay drops you should see either rebates or reduced deductions.
SnaggleTooth:
If your tax code is 1250L, this week is week 22 of the tax year
!2500 / 52 = £240.38 multiply that by 22 weeks = 5288.46 to date before PAYE tax is deducted, but there will be Nat Ins deductions
Any payments over £240.38 each week with obviously be taxed, but later in the year if your pay drops you should see either rebates or reduced deductions.
Not sumsure it’s brokenndown like that - it is for NI, but AFAIR, is not just weekly rated like this. If our driver earned big sums early in the year, tax comes in as soon as they have reached their personal allowance.
None the less, the driver would be wise to double check what he showed on the agency form.
SnaggleTooth:
If your tax code is 1250L, this week is week 22 of the tax year
!2500 / 52 = £240.38 multiply that by 22 weeks = 5288.46 to date before PAYE tax is deducted, but there will be Nat Ins deductions
Any payments over £240.38 each week with obviously be taxed, but later in the year if your pay drops you should see either rebates or reduced deductions.
£5k with another agency so far this year
£3.3k with the current one so far, so about 8.3 in total. I should probably mention I registered with them last year and I’ve been doing occasional shifts until 2019 when I automatically got my p45 because I hadn’t worked for them for 12 weeks or so. Then I had to re-activate my profile on their website but only some of the fields I had to fill out again. Everything was done online.
Conor, you’re right - it does say “My first job since april…”
So if my math is correct (very unlikely) the extra £5k income will amount to £1 000 in tax owed next year, on a 1250 tax code assuming <30k for the year
