I lived in Spain for 3 years and moved back to the UK August 2015. I started work Sept 15th 2015 and then finished on Feb 10th 2016. my taxable pay in that period was £9264.08 so I was not deducted any tax only NI.

I have recently started work again earning £26,000 PA. My start date was April 19th 2016 and my first pay will be on 25th May 2016.

My question is this:- will I get taxed as normal or do I have up until £11,000 before I get taxed, does it roll over into a new tax year or not.


The following is my understanding based on having worked in the UK.

Allowances don't roll over between tax years any allowance you didn't use-up last tax year is lost.

Within a year your allowance is split up between your pay periods and within a tax year unused allowances do carry forward. So what should happen is that you get both April's share of the allowance and May's share of the alloance applied to your May pay packet. After that you will be taxed as normal so assuming you stay in work to the year end you should have paid the correct ammount of tax. If you start working late in the tax year you may find you have several months of no income tax as you use up the carried-forward allowance.

Afaict whether that is what actually does happen depends on the competance of the people operating PAYE at your employer and whether you filled out the "starter checklist" (Formerly P46) correctly. At the end of the year its probablly a good idea to check the total tax paid is correct.

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