Associate
- Joined
- 14 May 2018
- Posts
- 151
Hey guys. Wondering if anyone here can help me understand something.
Myself and my colleague do the same job together. However I am paid more per hour than she is because of my experience (Around £1.50 per hour. Works out to between £75 - £90 per week before tax)
However I find myself being paid the same or about £10 less than her every week, due to me paying around £75 - £100 more tax than her (Based on us working exactly the same hours and days in a given week)
I asked to see her tax code and it is 1677L, while mine is 1257L. She told me that it changed in May. Before that it was the same as mine. As I understand, my colleague has a higher tax-free threshold (of around £4200 per year) then myself? My colleague has told me that her husband (who earns around £70,000 per year) also has this tax code.
She has no idea why her code changed and when I look online for such a tax code, I can find nothing specific about it. We're (myself and my colleague) not self employed. We're PAYE. We're paid weekly by our agency. I'm not sure what the deal is with her husband.
My assumption is that this is happening because HMRC believe I will earn 'X' amount more than her and will hit the 40% tax threshold (I calculate my income for the tax year as being £62000. I calculate my colleagues income for the tax year as being £51000). Thus I pay proportionally more tax than my colleague to account for this? Combined with her extra tax-free allowance, I end up no better off than her, despite being set to earn a whole £11000 more than her over the year.
Does that sound right?
FYI - My current income for the year to date is approximately £36002.31. I have paid approximately £6,905.80 in tax.
My colleagues income for the year to date is around £30000 (+/- £200). She has paid £4200 (+/- £100) in tax (don't have exact figures on me because I don't have her timesheet but these figures are very close)
Myself and my colleague do the same job together. However I am paid more per hour than she is because of my experience (Around £1.50 per hour. Works out to between £75 - £90 per week before tax)
However I find myself being paid the same or about £10 less than her every week, due to me paying around £75 - £100 more tax than her (Based on us working exactly the same hours and days in a given week)
I asked to see her tax code and it is 1677L, while mine is 1257L. She told me that it changed in May. Before that it was the same as mine. As I understand, my colleague has a higher tax-free threshold (of around £4200 per year) then myself? My colleague has told me that her husband (who earns around £70,000 per year) also has this tax code.
She has no idea why her code changed and when I look online for such a tax code, I can find nothing specific about it. We're (myself and my colleague) not self employed. We're PAYE. We're paid weekly by our agency. I'm not sure what the deal is with her husband.
My assumption is that this is happening because HMRC believe I will earn 'X' amount more than her and will hit the 40% tax threshold (I calculate my income for the tax year as being £62000. I calculate my colleagues income for the tax year as being £51000). Thus I pay proportionally more tax than my colleague to account for this? Combined with her extra tax-free allowance, I end up no better off than her, despite being set to earn a whole £11000 more than her over the year.
Does that sound right?
FYI - My current income for the year to date is approximately £36002.31. I have paid approximately £6,905.80 in tax.
My colleagues income for the year to date is around £30000 (+/- £200). She has paid £4200 (+/- £100) in tax (don't have exact figures on me because I don't have her timesheet but these figures are very close)
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