Adrian Moreno

Thank you very much for your reply. When looking at the salary breakdown I cannot see that allowance applied. There's a gross salary labeled as "Pensionable salary", after Pension and NI paids are deducted there's then a "Taxable salary". Would the Personal Allowance be applied then?

Hi, I believe this is a very general topic. It is true that I have included details for our specific situation but the question applies to every tax payer in the UK. Every worker has a Personal Allowance, when and how is this allowance applied? I just gave the numbers to illustritate better that I cannot see where the allowance has come in place. Best Adrian

Good morning, I had a query on behalf of my wife's situation. She is a primary school teacher in Scotland in her 2nd year (gross pay of £40848). When looking at her taxable pay, after deducting £3300 on pension and another £3000 on NI, there's a taxable pay of £34700. Where is her personal allowance of £12500 used? If I'm not wrong, the allowance should be deducted from the taxable pay (34700-12500 = £22200), then apply the 20% tax to that amount (22200*0.8 = £17760), add that to the personal allowance (17760 + 12500 = £30260), and finally divide that amount by 12 to get monthly salary (30260/12 = £2521/month). However, the salary that gets in her account is far lower. She's only got student loan to pay, and the numbers still do not much. Am I missing something here? Many thanks, Adrián