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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16322
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I assume the £2500 furlough cap is subject to income tax?

Customer Question

I assume the £2500 furlough cap is subject to income tax? Therefore, if my gross salary was £5,000 per month, this is a significant drop in take home pay. No change to my tax code?
JA: Which tax year is this for?
Customer: This year
JA: Anything else you want the Accountant to know before I connect you?
Customer: No
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello,I am one of the experts on Just Answer and pleased to be able to help you with your question.

Tax codes do not change with variations in pay. They feed the tax tables which do account for such differences.

Customer: replied 1 year ago.
the capped furlough is subject to tax based on the latest tax code
Expert:  bigduckontax replied 1 year ago.

Correct.

I would like to talk, but from long experience I think you will find it easier to ring me. I am on 01750 725420.

Expert:  Sam replied 1 year ago.

Hi

Yes income tax is due its paid like salary through the payroll and subject to income tax and National Insurance

Thanks

Sam