Tax code/personal allowance

[Patrick Bateman]

How is the personal allowance spread out?

Mine has gone up from around £3940 to £9532.

Is the extra I'll receive as simple as the difference between them spread out evenly over 12 months? So £5592/12 = £466 extra in my hands each month?

[Chocolate Teapot]

No, that's the sum you won't be taxed for so the actual gain is roughly 20% off the difference

[Patrick Bateman]

Ah yes, forgot about that bit, cheers.

[Countdown]

Patrick Bateman said:

How is the personal allowance spread out?

Mine has gone up from around £3940 to £9532.

Is the extra I'll receive as simple as the difference between them spread out evenly over 12 months? So £5592/12 = £466 extra in my hands each month?

IIRC the payroll system

Looks at the new code
looks at how much tax you have paid TO DATE
Works out how much tax you SHOULD have paid to date
Makes the adjustment in the next pay slip (in your case refunds you all the tax you have overpaid)

And then the month after you will be deducted the correct amount of tax (which will be calculated by looking at your earnings, looking at your tax code, calculating how much tax you need to pay for the year and spreading this out over the remaining payslips)