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Discussion in 'New teachers' started by buttons44, Jul 17, 2011.
pinkflipflop - does that amount include pension? Thanks x
Yes, that amount is after tax, student loan deductions and pension deductions.
Thanks very much pinkflipflop, this is really going to help me plan my finances. Much appreciated. x
It is a bind, the taxman will assume they're right to take money until proven otherwise! This could mean you're entitled to a tax refund if you were working before you started your PGCE. I worked from the start of the tax year (April) to August, but paid tax through PAYE as if I was working the whole year. Because I only just passed the threshold, they took more than I owed given that I stopped working in August. Worth looking up if you haven't already - http://www.hmrc.gov.uk/incometax/refund-reclaim.htm.
The system is PAYE Pay as You Earn so tax is deducted from the outset. Any over or underpayments are corrected at the end of a tax year or more usually these days a couple of years later. The HMRC site has a useful downloadable guide and further details. if you have received unemployment benefits then these are also taken into account over the tax year.
When I started teaching in September, I didn't pay any tax until December's pay.
When queried with Finance etc i was told that I would pay any tax until my take home pay had hit the threshold. This was because I hadn't worked since leaving my PGCE course in the June until I started school in September.
Also I didn't pay any Student Loan until the start of the new financial year in April. I pay £49 a month student loan (but I'm in the North so my salary isn't as high as those down in the smog!)
Try using http://listentotaxman.co/index.php
I have found it useful as it helps you work out monthly, weekly and even daily pay including IN contributions and it will also take into account student loans and shows you the exact break down of it all.
sorry this is the correct address!
To reconcile some of the previous information, it may help to know that the PAYE system works on a cumulative basis.
HMRC gives employers tax tables that calculate how much tax is due (in total for the year so far) given an employee?s tax code and taxable pay to date. Each month, employers compare tax due with tax paid so far, and deduct the difference from our pay.
These tables assume that the tax-free amount will be used evenly over the year, 1/12th per month. Their use means that the correct tax is deducted each month, even when pay and/or tax codes change during a tax year.
When the OP?s first pay arises at the end of September, the tax calculated by these tables will take account of the personal allowance for the months April ? September that has not been used. Assuming a tax code of 747L (the personal allowance for 2011/12 is £7475), no income tax will be deducted until gross taxable (ie after pension contributions) pay reaches £3737.
As a further £623 is tax-free each succeeding month, it may not be until the December pay that any tax is deducted.
NQTs who haven?t worked in the preceding tax year should ensure that they get from HMRC a tax code appropriate to their circumstances before September ? many NQTs discover that LAs have put them on a BR code (when all earnings are taxed at the basic rate) because HMRC have not issued a tax code, and it can take a few months to recover the overpaid tax. Fill in a P46 if you don?t have a P45 to give to your new employer.
I always use the tesfaq pay calculator, much more useful than any others.
I'm also starting as an NQT in outer London, but
Am a little confused some sites NUT says starting is 22k where as others say 25, is anybody able to clear this up for me? Thanks