How much tax?

[sallycroc]

I started a new job 4 weeks ago and I am confused how much tax and national insurance I should be paying.

Since April 2007 I have earnt approx �2500

My salary is �25,000 per annum.

I'm unsure how much I will be taxed. I know I havent gone beyond my personal allowance.

Will I be taxed nothing? or is it 10%

If anyone knows this I will be grateful. I have used a salary calculator but I'm unsure about my tax code.

Thanks,. Sally.

[kempie]

The personal tax allowance is currently �5225 and is indicate by a tax code of 522L. This figure may be different if you contribute to a pension or have other deductions.

The tax allowance is for earnings in this tax year (2007/8) and equates to approximately �100 per week; anything earned above that amount is taxed at the prevailing rates.

This calculator shows your tax and NI liabilities per year, month and week...

http://www.listentotaxman.com/index.php?isMarr ied=0&isWidow=0&isBlind=0&isStudent=0&calc=1&y ear=2007&age=0&add=0&taxcode=&ingr=25000&perio d=1&chart=0&payrise=0&gr=25000

[dzug]

You HAVE gone beyond your personal allowance - under PAYE you get 1/12th of it each month.

This means that if your gross pay stays the same you pay roughly the same tax each month rather than face a rising tax bill through the year as you exceed the various limits.

[sallycroc]

Thanks for your responses.

I'm still a bit confused.

I havent worked in UK for a few years. (I'm British).

Explain to me about the allowance? Why is it done 1/12?

Is my tax code correct?

Thanks x

[kempie]

�5225.00 is the yearly personal tax allowance.
� 435.42 is the equivalent monthly allowance (1/12)
� 100.48 is the equivalent weekly allowance (1/52)

If you are paid monthly, the first �435.42 earned each month is tax free.
If you are paid weekly, the first �100.48 earned each week is tax free.

I cannot comment on your tax code (even if you had supplied it) since I do not know your personal circumstances and tax history. If you have reason to believe the tax code is incorrect contact your Tax Office.

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/ReclaimingTax/DG_4015573