HMRC Tax free allowance

[sat]

Hi all,

Have recently moved to contracting from a permanent role, little confused on how the tax allowance is worked out. As contractor limited company you could save 10600 tax free allowance but if we started the contract at the middle of the year in August how did the HMRC caliculate this tax?
Any advise appreciated?

Thanks in advance.

[chopper]

Your permie employer will send you a P45. Give this to your accountant. Bish bash bosh.

Unless you have earned less than £10600 since April 6th, then you have already used up this year's tax allowance.