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Topic: Ugh - Personal Allowances?  (Read 492 times)

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Ugh - Personal Allowances?
« on: March 02, 2010, 04:34:07 PM »
Hi team,

So I got my second pay check a few days ago and noticed they took out for national insurance but not PAYE taxes.  When I asked our accounting/HR team, they said that I don't have to pay right now, as this is my first job in the UK and I have a personal allowance of £6k.  Is this right?  I feel like I am going to wind up having to pay back the gov't. UGH!

x
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Re: Ugh - Personal Allowances?
« Reply #1 on: March 02, 2010, 05:34:54 PM »
From the god awful amount of reading I am doing on taxes if you don't meet the mininum amount or they dont think you will then you won't pay taxes.  I didn't know it was 6K though..
Since this is until april 5th when the UK tax year is up if you don't think you will make the min by then, then I don't believe you will pay taxes on the small amount.

This is only from memory on what I have read on HMRC and tax tableshttp://www.hmrc.gov.uk/rates/it.htm

Good luck!
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Re: Ugh - Personal Allowances?
« Reply #2 on: March 02, 2010, 05:59:16 PM »
Don't worry, that is correct!
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Re: Ugh - Personal Allowances?
« Reply #3 on: March 02, 2010, 06:30:25 PM »
If you decide to pay UK tax on the remittance basis during the first 7 years of tax residency you will lose the personal allowance.

If you pay tax on the arising basis you get a personal allowance (exemption).
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Re: Ugh - Personal Allowances?
« Reply #4 on: March 02, 2010, 07:32:29 PM »
If you pay on the arising basis, the £6,475 personal allowance is on your total taxable income, and not on wages only. Any bank/building society interest, income from rental property, benefits in kind from your employer, etc., that are in addition to your wages contributes to your final taxable income.
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