₦airaland Forum

LagosismyHome:
If the tax is calculated well I would say no... he shouldn't earn £2,500 after tax. The 12.5 is evenly calculated for a year. Divided by 12.......so 2k salary range after tax will be earned each month .

However if after April to March let say mid way the salary falls significantly or increases then the person might have over paid or under paid tax and hears from HMRC

Thanks for the clarification, Really appreciate.

marylandcakes:
This allowance is accumulative. Eg if your tax code is for eg. 1250L and you only start earning in tax month 3 which is June, then your tax allowance for the month of June should be £12500/12 x3 =£3,125 . If you haven’t earned up to £3,125 by tax Month 3 then you have no tax to pay. Please note this depends on your tax code. If you’re tax code is 1250L M1 then your pay will be calculated not on accumulated basis . This means as long as you earn more than £1,042 monthly you will get taxed on the balance.

Brilliant, well understood!.

marylandcakes:
12500 /12 =1041.67 this will be your monthly allowance before tax so 30000/12 = 2500 - 1041.67=£1,458.33 (taxable allowance)this is the amount you will be taxed on
20% of £1,458=291.66 tax payable
Your ni should be about £204
Take home pay should be approx about ( 2,500-292-204)= £2,004 it could be less after pension deductions about 3%.
Hope this helps?

Good calculation. with the calculation here, I will like to further ask, will he at any point hearn £2500 before going to £200,4, since he's entitled to monthly allowance. E.g 2500 × 5 months is =£12,500, so after exhausting the 12,5k the remaining 6 month he earns £2000. Your calculations makes it look like he will outrightly earn £200.4 from the very first Month. Does it work this way?

Why I am giving this scenerio is that I saw on YouTube a nurse who recently arrived at the uk share her monthly payslip of £1700 or so, only NI and pension was deducted, she said the uk her so nice that she won't get tax until she exceed her 12.5 allowance. So again will he at any point earn £2500


@marrylandcakes
@LagosismyHome