How Much Money Can I Earn Before I Need To Pay Tax?

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Cormac Reynolds Profile
Cormac Reynolds answered
When you are working, you will be given a tax code; this is dependent on a few factors and will tell you how much you can earn before you have to pay any tax. Each tax code is made up of some numbers and a letter that has a different meaning.

For example, everybody has a personal tax allowance that enables them to earn so much before their salary becomes taxable. The tax code for 2011 for a basic personal allowance is 747L. You should replace the final letter with a five if you want to know exactly how much you can earn before you are eligible to pay tax, so in this instance it is £7,475.

If you have two jobs or pensions, it is likely that all of your second income will be taxed because you will have used up your tax allowance on your first.

Some people will be able to earn more than this before they are eligible for tax because things like special clothing can be taken into consideration. You can check with your local tax office if you think that this applies to you.

If you are not sure what your tax code is, you will be able to find it on your P60 or P45. A P60 is the document that your employer is legally obliged to give you each year; besides your tax code it will also show you exactly what you have earned for that period, as well as the tax that you have paid, your National Insurance number and any other financial matters that are relevant to you, such as student loan payments, statutory sick pay and pension contributions.

If you have left your place of employment, your employer is obliged to give you a P45. This will have the same information as a P60, but will only give your payment details up to the date that you left their employment. It is important that you keep this document so that your new employer can make sure that you are being taxed at the right level.
Anonymous Profile
Anonymous answered
Up to 25,000 dollars  a year. Any thing after that will put you in a different tax bracket leading you to pay taxes
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Anonymous answered
I don't work at the moment but have the chance to do 8 hours work ,which will work out at £256 a month, do I have to tell the tax office
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Anonymous answered
Earned forty thousand do I have to file fed.  Tax
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Anonymous answered
I'm single parent 1 dependent make 19,000 this year claimed 4 on taxes . Will I owe
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Anonymous answered
I am on social Security and 70 years old. How much social security can I have and not have to pay taxes
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Anonymous answered
The amount of Income Tax and National Insurance you should pay are determined by your how much you earn. You are entitled, however, to a tax-free allowance, below which any income will not be taxed. If you are employed this is currently set at �5,035, although it may be higher if you are aged above 65 or are registered as blind. As an employee this will be automatically deducted through the Pay As You Earn scheme.

If you are self-employed, you should register as such with the Inland Revenue within three months of the end of your first month in business. If you fail to do this you could be liable to a financial penalty. After having registered you will automatically be sent a tax return form every April, which you must fill out in order to work out how much tax you should pay. If you fail to return this form by the following 31st January, you could again face a penalty.
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Anonymous answered
You have to earn over 30000 all together to be able to pay tax. That includes money you have already spent. Once you make over 30000 you have to pay tax. So if you have a part time job you may never have to pay tax. So there are so people out there today working part time and not paying taxes because they don't have to.
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Anonymous answered
It depends upon which country you live in and what other taxing jurisdiction you may be subject to. In the US it would be about $5,400 before state and federal taxes.

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