why do you pay cumulative tax
Cumulative tax codes (e.g. 1060L). Most people are on a cumulative tax code. You can identify a cumulative code because it does not include âW1â or âM1â.It means your tax is calculated on your overall year-to-date earnings.cenario 1: Cumulative Code (tax is calculated on total earnings for the year-to-date). In week one, John would pay Â£19.20 in tax based on gross earnings of Â£300, and a Â£204 tax-free allowance. In week two, his year to-date (YTD) gross earnings would be Â£600, and the cumulative tax-free allowance would be Â£408.