National Insurance allowance

[TheCyclingProgrammer]

"He seems to think"? I know that is how it works.
I wasn't saying earning money does not increase your liablity to be taxed on it at any point in my posts. The OP was told he had no more allowance to use and I that he would under the cumulative tax method used by HMRC

Everybody here understands how PAYE works and how your tax allowance is applied cumulatively. That should be evident from anyone who has responded to your nonsense.

And as you were told earlier that's completely irrelevant. All that matters is what effect paying more salary would have on OPs overall tax liability. Nothing else.

[TheCyclingProgrammer]

There really are some ignorant morons on this site!

Only one from where everyone else is sitting. Well done on managing to contribute absolutely nothing useful to this thread. I'm sure OP is grateful for your non advice.

[northernladuk]

There really are some ignorant morons on this site!

[pmasoft]

Not you NL. You have been unusually quiet

[pmasoft]

Only one from where everyone else is sitting. Well done on managing to contribute absolutely nothing useful to this thread. I'm sure OP is grateful for your non advice.

I am sure he is

[northernladuk]

Not you NL. You have been unusually quiet

Waaaaay out of my depth on this one so I am quite happy to be the ignorant moron this time. I've got my accountant on speed dial so that's good enough for me.

[Maslins]

pmasoft, you're wrong. Others have explained why.

Monthly PAYE deductions are just employers attempting to collect your tax evenly over the year, done on the basis that you'll continue earning at a similar rate all year.

[pmasoft]

pmasoft, you're wrong. Others have explained why.

Monthly PAYE deductions are just employers attempting to collect your tax evenly over the year, done on the basis that you'll continue earning at a similar rate all year.

I'm not, but given up trying to convince people.
It isn't the Employers who dictate this it's HMRC.

[ASB]

I'm not, but given up trying to convince people.
It isn't the Employers who dictate this it's HMRC.

fwiw I understand where you are coming from. And you are "right" in you assertion that only half of the allowance has been "used". But it's not actually particularly relevant.

This is because, as you acknowledge, it is - in circumstances where it is not a W1 code - a cumulative calculation. In all cases it will eventually become a balancing calculation through the SATR anyway.

PAYE is intended to "smooth" the payment. The actual amount due is only known at the year end from which what has been paid along the way is deducted any balance collected or refunded as appropriate.

If somebody had been earning 4k a month for 6 months then they would have had approximately 700/month deducted (4,200). [The tax due on 48,000 in a year is 8,400 and the effect of paye is to assume that this in the income that is expected to be received]

If they then earned nothing for the rest of the year they would in fact have overpaid by 1,600 and get a refund at the end of the year since the tax due on 24,000 in a year is 2,600.

[pmasoft]

fwiw I understand where you are coming from. And you are "right" in you assertion that only half of the allowance has been "used". But it's not actually particularly relevant.

This is because, as you acknowledge, it is - in circumstances where it is not a W1 code - a cumulative calculation. In all cases it will eventually become a balancing calculation through the SATR anyway.

PAYE is intended to "smooth" the payment. The actual amount due is only known at the year end from which what has been paid along the way is deducted any balance collected or refunded as appropriate.

If somebody had been earning 4k a month for 6 months then they would have had approximately 700/month deducted (4,200). [The tax due on 48,000 in a year is 8,400 and the effect of paye is to assume that this in the income that is expected to be received]

If they then earned nothing for the rest of the year they would in fact have overpaid by 1,600 and get a refund at the end of the year since the tax due on 24,000 in a year is 2,600.

Thank you!
It is relevant to the OP but seems to have been hijacked by others and taken off in another direction which wasn't anything to do with the original post.