Emergency tax rate uk? Please help!?

Question

Hi does anyone have any idea what percentage is the emrgency tax rate out of your wages. Due to go away and could do with the knowing. Thanks very much..x

Answer 1

Emergency tax is 30 per cent if you haven't got a tax reference number. and if you are self employed.

Answer 2

Hiya - I think its 25 percent on the whole amount ie you dont get any personal allowances..

Answer 3

When I had two summer jobs in 2006, the emergency tax was 22% for me. I am not too sure though if things have changed since or not, but I think it's still that rate. Hope this helps.

Answer 4

Emergency tax is the same as ordinary tax. You get £104.52 per week, or £452.92 per month tax free, after that tax is deducted at 20%. The only difference is that each week/month is taken in isolation, whereas tax is normally calculated on a cumulative basis. So if your earnings are spasmodic, that doesn't taken into account.

Rainbow, that's common practice, and PAYE correctly operated at Basic Rate once you have left a job. It is assumed you are working elsewhere, and getting your tax allowance there. Otherwise you would get two lots of tax allowance, and end up underpaid.

Answer 5

It depends how much you earn

If say you earned £4,000 in your first month on emergency tax then the lovely tax man would assume you were going to earn 12 x £4,000 during the year. This would take you over the 40% threshold so you would be taxed at 25% up to the threshhold and 40% on anything earned over the threshhold.

If you look like you're going to be earning less than the threshhold then it's just 25%

Whatever they take, when they work it out properly and you get a tax code they either give you a bit back, or adjust your code to take a bit more

Answer 6

It's 20%, which is now the basic rate of tax.

I've just received a late payment in respect of my job from which I retired last year.  Because the company no longer has a tax code for me, they've had to tax this payment on a Basic Rate wk 1 basis.  I worked it out that the amount of tax deducted from the payment was 20%.