PAYE question

Hope someone can help please . I haven’t worked or earned in 2020/21. I’ll be starting mid September . How does it works in terms of basic rate allowance and also higher rate liability? Do you get the full allowance ? Will I be taxed at the higher rate as my salary is in that band but my earnings this year won’t be ?

Will I need to speak to HMRC ?
 


You'll get the full allowance.
Usually your allowance is spread over the year, 1 12th each pay day is your tax free amount. But yours would be spread over 6 or 7 depending upon how many pay days you'll have.
Shouldn't need to contact hmrc
 
Hope someone can help please . I haven’t worked or earned in 2020/21. I’ll be starting mid September . How does it works in terms of basic rate allowance and also higher rate liability? Do you get the full allowance ? Will I be taxed at the higher rate as my salary is in that band but my earnings this year won’t be ?

Will I need to speak to HMRC ?

You will get your full pa assuming you arnt earning over 100k?

What will likely happen is that you will be put on a standard 1250L which will pro rata your personal allowance evenly over 12 months. as you won't have worked for 12 months you will likely be liable for a tax rebate come next April.

Unless hmrcs systems have become Uber efficient since making tax digital.
 

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