Quick Questions about my pay (and tax deductions)

DJMK4

DJMK4

DJMK4

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Am I being conned or what by the tax man?

Iv recently started a new job, which has an annual salary of £18k, monthly gross before deductions is £1500, im getting taxed £415 (thats £300 PAYE Tax, and £115 national insurance), therefore my net (take home) is ~ £1088 surely this is incorrect?

I havnt done the maths yet, but this seems way too high!
 
The National insurance level is correct, but tax is higher than expected. I suspect that you are on an emergency tax code. Does your new employer have a copy of your P60 from your previous employers?
 
branddaly said:
The National insurance level is correct, but tax is higher than expected. I suspect that you are on an emergency tax code. Does your new employer have a copy of your P60 from your previous employers?
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I had a P60 recently from my old employer, which my new employer now has.
 
Accourding to that calculator, given my student loan deductions aswel, my net monthly incoming should be £1,163.20 (if i have done it correctly). Im being skanked!
 
It is high, I should be getting taxed:

~£199.35 PAYE Tax
and
~£114.95NI

Won't get a rebate until next month probably now, I could have used that money this month :(
 
you will likely have to claim the rebate from HMRC directly as your employer can't rebate previous tax years (assuming that the payment above was your month 12 payment)
 
Pneumonic said:
you will likely have to claim the rebate from HMRC directly as your employer can't rebate previous tax years (assuming that the payment above was your month 12 payment)
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My employers accounts/finance department is looking into it for me.
 
OK, my finance department just had a reply from Payrole Accountants:

"Dear *****

I am afraid that the deductions are correct. The reason the tax was higher this month is because the details from his P45 were included when I processed the salary for this month.



In February D****n received his personal allowances twice. He left his old employer on 6th February so his old employer gave him his allowances, and because at the time of processing his salary I didn’t have his form P45 I used an emergency code number and therefore used his allowances on a non cumulative basis.

In future months his tax will be less. Sorry it has worked out like that. Unfortunately it often happens when someone takes up new employment part way through a month.



With kind regards "

Im sorry but what "Personal allowances" did I recieve from my old employer? as i certainly dont recall this?

Am i getting bull ****?
 
DJMK4 said:
Im sorry but what "Personal allowances" did I recieve from my old employer? as i certainly dont recall this?

Am i getting bull ****?
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Probably not. Each year you can earn 6035 pounds before having to pay any tax. Rather than not tax you at all for the first few months, and than tax you heavily throughout the rest of the year employers break this down into monthly amounts. So the first 502 pounds you earn each month are tax free, and then you are taxed on any earnings about this amount.

It would appear that your previous employer gave you the full months tax allowance on your earnings from them for Febuary, and then the new employer also gave you the full tax allowance. (so you would have had a higher take home pay than would normally be expected for this month). To correct this they've had to tax you more heavily for March. I'd expect from now on you'll be taxed at the normal rates.
 
branddaly said:
Probably not. Each year you can earn 6035 pounds before having to pay any tax. Rather than not tax you at all for the first few months, and than tax you heavily throughout the rest of the year employers break this down into monthly amounts. So the first 502 pounds you earn each month are tax free, and then you are taxed on any earnings about this amount.

It would appear that your previous employer gave you the full months tax allowance on your earnings from them for Febuary, and then the new employer also gave you the full tax allowance. (so you would have had a higher take home pay than would normally be expected for this month). To correct this they've had to tax you more heavily for March. I'd expect from now on you'll be taxed at the normal rates.
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OK. Is there anyway I can trace what happened in Feb? As I left my old employer on 6th Febuary (The monthly pay would begin at the start of the month till the last working day), and started my new job on the 9th febuary, AFAIK I was taxed the correct amount (I certainly didnt realise about being under taxed?), I dont know if this takes into account but I also had 1 weeks holiday (pay included in my last salary from days I didnt take off, again, i dont know if this was taxable), sorry if im getting the wrong end of the stick. Im no good with this tax crap. All i know is, if i get taxed too much, I will flip :rolleyes:

I'll be having a look at feb's payslips when I get home tonight
 
If you've got your P45 from your previous employer then that will show the amount you have earned and the amount of tax you paid.
 
branddaly said:
If you've got your P45 from your previous employer then that will show the amount you have earned and the amount of tax you paid.
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I have a copy of this at home, along with my previous employers payslip, and my new employers payslip (3/4's of Febuary and now March's payslip)
 
DJMK4 said:
Am I being conned or what by the tax man?

Iv recently started a new job, which has an annual salary of £18k, monthly gross before deductions is £1500, im getting taxed £415 (thats £300 PAYE Tax, and £115 national insurance), therefore my net (take home) is ~ £1088 surely this is incorrect?

I havnt done the maths yet, but this seems way too high!
Click to expand...

I get payed just over 17.5k a year and that is my exact net wage after (tax, NI, student Loan, pension payment)
 
ColdAsIce said:
I get payed just over 17.5k a year and that is my exact net wage after (tax, NI, student Loan, pension payment)
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I should be getting about £1,125-£1,150 region I think, bearing in mind I need to notify the Student loan company about the change in job, and I dont have a standard pension that comes out of my deductions.
 
DJMK4 said:
I should be getting about £1,125-£1,150 region I think, bearing in mind I need to notify the Student loan company about the change in job, and I dont have a standard pension that comes out of my deductions.
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yep my student loan payment is something silly like £15 but my pension payment is around the £100 mark,

so you would be looking at plus+ £1,188 minimum
 
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