[Oliver_W]

Originally Posted by Josy

20% isn't the standard rate that's basic rate ie emergency tax, 12% is the standard rate.

Phone the tax office Will and tell them you've been placed on an emergency tax code.

Band - Basic rate

Taxable income - £11,501 to £45,000

Tax rate - 20%

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[Josy]

Originally Posted by Oliver_W

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Basic rate has always been emergency tax though

Either way that's after personal allowance, Will hasn't made anywhere near the personal allowance so he shouldn't have been taxed at all.

And 2400 he should have paid no more than a couple of hundred quid tops

[Josy]

Originally Posted by Oliver_W

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If you have been issued with a BR tax code, then you will not receive a Personal Allowance and you will be taxed at the 20% basic rate.

That's Emergency tax.

[DemolitionRed]

Originally Posted by Oliver_W

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That's taxable after £11,500

[Oliver_W]

Originally Posted by Josy

Either way that's after personal allowance, Will hasn't made anywhere near the personal allowance so he shouldn't have been taxed at all.

Originally Posted by DemolitionRed

That's taxable after £11,500

I know, but like I said upthread, if he doesn't end up making £11.5k in the tax year, it will be rebated, so it's all good.

[Josy]

Originally Posted by Oliver_W

I know, but like I said upthread, if he doesn't end up making £11.5k in the tax year, it will be rebated, so it's all good.

He still needs to contact the tax office though to get a proper tax code not an emergency one.

[DemolitionRed]

Originally Posted by Oliver_W

I know, but like I said upthread, if he doesn't end up making £11.5k in the tax year, it will be rebated, so it's all good.

Nobody pays tax up to £11.5k so if he's earning 12k a year, he will only pay tax on £500 a year. If he's earning £20k a year he will only pay tax on £8.5k of his gross income. If he's earning £11.5k a year he won't pay tax.

He will be rebated regardless of what he's earning because he's presently paying tax on his entire gross salary.