Are my income tax and national insurance deductions correct?

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  • bspm
    bspm Posts: 541 Forumite
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    Jason...are you for real???
  • jasonbell
    jasonbell Posts: 10 Forumite
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    bspm wrote: »
    Jason...are you for real???

    the illustration shows the pence rounded off for each entry, but his last comment suggested something different.
  • chrisbur
    chrisbur Posts: 4,053 Forumite
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    jasonbell wrote: »
    the illustration shows the pence rounded off for each entry, but his last comment suggested something different.

    As Dazed and confused advised the rounding for months 2 to 11 are temporary they only affect tax for that month and are then forgotten, we go back to using the un-rounded figure for the following month. Month 12 has no following month so that month the pence are ignored and no tax is paid on them.
    This is what causes many people to see a 20 pence change in their tax every so often even though they are on the same wage every payday. In your case it has hit on the month 12 payment where your tax goes down 20 pence.
  • molerat
    molerat Posts: 31,864 Forumite
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    edited 22 September 2017 at 8:53AM
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    jasonbell wrote: »
    the illustration shows the pence rounded off for each entry, but his last comment suggested something different.
    Tax is calculated each month, unless you have an M1 tax code, on the whole pounds remaining from the total amount earned year to date (£+p) minus the total tax free amount year to date (£+p). The amount of tax you have paid to date (£+p) is then deducted leaving the amount to pay in that month (£+p). Because of that running total being used each month the only amount ignored is the left over pence in M12. Many people with a fixed monthly pay amount will often have a 20p difference in the tax paid each month due to those dropped amounts adding up to a whole pound.
  • jasonbell
    jasonbell Posts: 10 Forumite
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    That makes more sense, thanks guys !
  • frugalmacdugal
    frugalmacdugal Posts: 10,077 Forumite
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    Hi,

    jings, op and partner have a combined gross wage of £64,500, and he's concerned about a few pence each month, I've lost more through a hole in my pocket. :D
  • jasonbell
    jasonbell Posts: 10 Forumite
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    frugalmacdugal wrote: »
    Hi,

    jings, op and partner have a combined gross wage of £64,500, and he's concerned about a few pence each month, I've lost more through a hole in my pocket. :D

    Ha :rotfl: its not the pence that concerns me its the jings in the future :p anyway stop being frugal and buy some new trousers! :D
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