Tax Rates 2012/13 Article Discussion

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  • jimbob_3
    jimbob_3 Posts: 248 Forumite
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    Hi,

    i wonder if anybody could help me with 2 queries regarding my tax and income?

    I currently earn about 43, 087 - just under the 40% tax limit, but ive been told ill be getting a pay increase of about 1,000 in september.

    Can somebody tell me if i will actually better be better off, becuse of higher tax and national insurance etc,

    and secondly - what steps should i take to maximise my income, savings etc because i will now be in this higher bracket?

    many thanks

    jim
  • mitchaa
    mitchaa Posts: 4,487 Forumite
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    jimbob wrote: »
    Hi,

    i wonder if anybody could help me with 2 queries regarding my tax and income?

    I currently earn about 43, 087 - just under the 40% tax limit, but ive been told ill be getting a pay increase of about 1,000 in september.

    Can somebody tell me if i will actually better be better off, becuse of higher tax and national insurance etc,

    and secondly - what steps should i take to maximise my income, savings etc because i will now be in this higher bracket?

    many thanks

    jim

    Do you pay into a pension scheme?

    If not then you only pay 40% on earnings above £43,875 so if your salary is going to be £44,087 then you will only breach the threshold by £212.

    You will pay an additional 10% on this £212 portion so £21.20 extra in tax

    You pay 31% as a basic rate tax payer (20% IT +11% NIC)
    You pay 41% as a higher rate tax payer (40% + 1% NIC)
  • mitchaa
    mitchaa Posts: 4,487 Forumite
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    CLAPTON wrote: »
    No, your payroll knows that the tax free allowance is 6475 and then the next 34800 is taxed at 20% and then everything else at 40% (and 50% soon).
    It divides these numbers by 12 and accumulates them on a monthly basis and offsetrs them against your total income to date.

    The threshold is £43875 not £41275.

    The 20% band is £37,400 + £6,475 P.A
  • zooma
    zooma Posts: 1 Newbie
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    hi there,
    l really want to sort sth which is l have wrong tax code.l am a master-full time student and l have student visa which allows only 20 hour a week.this is the case my tax code is BR l am sure this is wronge.l have been working at hotel from feb 2010 and at that time l started to pay tax.
    what can l do?how can l cahange it?
  • helikacarvalho
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    Dear friends, I saw you in this website, a very nice answer and help for the people. I have one question. I receive 1000 per month before tax and NI, I worked 5 months last year and I had a problem in my house in Brazil, and I had to back and stay there for 4 months. I worked, Feb, Mar, Apr, May, Jun, Jul, Set, 2009, and I back to england in March, and start to work in the same company
    in mar 2010. I received the P60 from my boss, and in the paper show I didn't payed any tax, but. every month, I just received 840.00. What I can do to receive back the tax? In the paper shows that I payed 0 and I received 6030. My boss put in the paperwork I was in debit with the company, and they are do got from my next salary 149.31. Can I apply for working tax? Please help me.. I have a Big long bill with the credit card.
  • deathlysilence
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    zooma wrote: »
    hi there,
    l really want to sort sth which is l have wrong tax code.l am a master-full time student and l have student visa which allows only 20 hour a week.this is the case my tax code is BR l am sure this is wronge.l have been working at hotel from feb 2010 and at that time l started to pay tax.
    what can l do?how can l cahange it?

    BR stands for basic rate taxation. which means you are taxed on every penny you earn and have no personal allowances such as £6450 personal allowance before you pay tax. contact the tax office to sort it out.
  • William_g_3
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    Hi,
    Can you help me try and work out why I'm paying higher tax this year when compared to last? I always receive my annual bonus in May. I have been fortunate to receive large bonuses but the tax increase this year has left me frustrated!

    My annual salary last year was £58k plus car allowance £9600. My annual bonus award was £41,600 (May). I was taxed at 40% for this bonus which was expected.

    This year my annual salary has increased to £66k plus car allowance £9600. My annual bonus award was £32,400 and i expected the normal 40% reduction. I was however taxedan additional £2578 on my bonus due to the new rules.

    I will earn around £107,000 this year and i'm considering dropping out of the car allowance to reduce my earning to under £100k. Is there anything else i can do to reduce the burden?

    Any guidance would be greatly appreciated.

    WG
  • NellB_2
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    I wonder if anyone can give me some advice. My husband left the military in March 2008. Since he left he has never had a year where the tax is paid correctly. He went straight to a job in March 2008 so had employment earning £50,000 plus a military pension of £12368. In Mar 2008 he was sent tax code 522. In April 2008 he was sent a tax code of 543L. In July he was sent K1568. In Sep 2008 he was advised of tax code K1508.His P60 for 2008/09 for Paymaster shows his final tax code as K1508 M1 with 4756.40 of tax deducted. His P60 for salary shows £55,710 and tax deductions of £12908.40 In April 2009 a notification was sent with DO MI as the tax code. In November 2009 he received a tax code of K2063 for tax year 2009/2010 then on November 15 he received another stating K1453. Paymaster then sent an account saying his new code would be K1435 and around 43% was deducted from his pension. In January 2010 a further code of K2485 was received for the year 2010/2011.His paymaster P60 showed his final code as K1435 M1 with £5,111 deducted. His final salary for 2009/10 was 52049.88 and tax deducted amounted to £15,859. Throughout this employment he also had a salary sacrifice scheme for pension. He was also entitled to private health care. In April 2010 he changed jobs with a salary drop to £35,000 but the pension remained the same, although he now receives another pension of £476pa. He received notification from Paymaster that his new code was K2485 and 50% was deducted from his pension payments. Unfortunately we can't find documents for this year at the moment. In 2011/12 his pension figure remains the same but his salary has increased to £46,000. On January 17 he received notification of a change of tax code from K256 to K742 for 2011/2012. On January 18 another notification arrived with a revision of 2009/10 calculation saying that they had under calculated that years by £919.60 as they hadn't included medical payment of 1167, apparently we also owed £614.60 from a previous year? We had another letter on the same day stating that for 2010/11we also were underpaid because of medical insurance of £150. They are also saying that the amount outstanding from 2008-2010 has not been collected so we now owe £1334.20. On January 28 we received another notice for 2012/13 for tax code K1189. We wrote to them asking why we have had these discrepancies since my husband left the Navy, received no reply and apparently they have a month to reply. When asked why this has been allowed to accrue and has been wrong for 4 years we were told that they only set the code if it isn't acted upon by the employer or Paymaster general then that's between us and our employer/pension provider. Is this right? (Sorry for the lengthy description).
  • mumof2fromtyrone
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    Is it true that if you dont use your whole personal allowance ( I work part time and earn £5000), that I can pass the remainder to my partner?
  • suso
    suso Posts: 548 Forumite
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    Is it true that if you dont use your whole personal allowance ( I work part time and earn £5000), that I can pass the remainder to my partner?

    No its not.

    Its a personal allowance to yourself, not transferable, and if you do not use it in the year, then it is lost.

    There are 2 exceptions.
    Married couples allowance - one of the people in the marriage must have been born before April 6th 1935
    Blind Person Allowance. - any unused allowance can be transferred to civil partner / husband / wife
    He's not an accountant - he's a charlatan
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