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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5027
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I'm a new employer and am using the governments basic paye

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I'm a new employer and am using the governments basic paye programme. I put in the gross pay eg £280 per week and let the computer calculate the tax and ni payable. When I look at the results, the ni is deducted but no tax is payable. Surely this doesn't seem right, please help
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question..Please advise- the start date of employment- is this first job in the current tax year- tax code applied Many thanks
Customer: replied 1 year ago.
Their tax code is 1060L 3 of them worked for the previous owner of the business which we took over 25 september 2015. The fourth employee has just started this week, tax code 1066L. According to his p45 he started his previous job december 2015 and didn't pay any tax with that employer. He earns 384 a week. He started in our employ last monday
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your response.A tax code of 1060L means one can earn £10,600 in this tax year before paying any tax.If you are paying the employee £280pw/£384pw and he/she has earned less than tax free pay to date, then there would be no tax deductible although NI would be deducted on this pay. Tax free pay at end of Feb 2016 would stand at around £9,716.I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.Please only rate my answer if it is acceptable.
Customer: replied 1 year ago.
So are you saying that they are not paying tax because it is so close to the end of the tax year but in 2016-2017 they will pay tax every week on those figures?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.They appear not to be paying tax this year as their earnings are within the tax free level.They will pay tax on these given figures every week in the new tax year. I hope this is helpful and answers your question.
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Customer: replied 1 year ago.
Thank you for your help