Been taxed 24% on first payslip, any help?
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kobracai
Posts: 258 Forumite
in Cutting tax
Hello
I recently started a second job on top of my weekday one, both on a PAYE, the second pays £7.80 and in my first payslip with the second job I can see the total deductions have been 24% of the gross salary !
According to https://www.listentotaxman.com for an hourly rate of £7.80, the total deductions should be 10.4%. Even if it's incorrect, certainly less than 24% since it's slightly above minimum wage. the tax code they put me under is BR
I emailed customer services of the agency, but they are slow to come back. Could I contact HMRC myself? is a phone call enough or will I need to do a full tax rebate, provided I am actually owed money?
thank you very much
I recently started a second job on top of my weekday one, both on a PAYE, the second pays £7.80 and in my first payslip with the second job I can see the total deductions have been 24% of the gross salary !
According to https://www.listentotaxman.com for an hourly rate of £7.80, the total deductions should be 10.4%. Even if it's incorrect, certainly less than 24% since it's slightly above minimum wage. the tax code they put me under is BR
I emailed customer services of the agency, but they are slow to come back. Could I contact HMRC myself? is a phone call enough or will I need to do a full tax rebate, provided I am actually owed money?
thank you very much
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Comments
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Your primary job has the tax code that uses your complete tax allowance, therefore a second job will be taxed at BR, 20% on it all (assuming standard rate taxpayer).
You can split your tax allowance across both jobs but unless your first job pays less than £11,500 then you will not want better off0 -
How much do you earn in you main job per annum?0
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The deductions will be according to the tax code allocated and a second job will be BR so 20% tax will be deducted unless you get HMRC to split your code which only works if your other job pays less than your tax allowance.0
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by "total deductions" do you mean including national insurance?Hello
I recently started a second job on top of my weekday one, both on a PAYE, the second pays £7.80 and in my first payslip with the second job I can see the total deductions have been 24% of the gross salary
as already stated a BR code means you get taxed 20% on the full £7.80 which is perfectly correct if, in your other job, you earn more than £11,500 per year as your other job has "used up" all your tax free allowance.
the extra 4% may be accounted for by your NI, which you will pay at the rate of 12% on only the amount in excess of £157 per week.
20% income tax + a bit of NI could easily work out of 24% of the gross as a composite figure depending on how many hours you worked that week.
tell us your figures per your payslip and someone will show you the actual
workings
- gross pay that week
- tax deducted that week
- gross pay year to date
- total tax paid year to date
- pension deduction (if applic)
- week number0 -
[quote=[Deleted User];72735550]How much do you earn in you main job per annum?[/QUOTE]
I'm with an agency so it varies around bands of earning, at the moment it's £13.25 per hour (temp ongoing) which would be around 24k0 -
by "total deductions" do you mean including national insurance?
as already stated a BR code means you get taxed 20% on the full £7.80 which is perfectly correct if, in your other job, you earn more than £11,500 per year as your other job has "used up" all your tax free allowance.
the extra 4% may be accounted for by your NI, which you will pay at the rate of 12% on only the amount in excess of £157 per week.
20% income tax + a bit of NI could easily work out of 24% of the gross as a composite figure depending on how many hours you worked that week.
tell us your figures per your payslip and someone will show you the actual
workings
- gross pay that week
- tax deducted that week
- gross pay year to date
- total tax paid year to date
- pension deduction (if applic)
- week number
yes including NI0 -
by "total deductions" do you mean including national insurance?
as already stated a BR code means you get taxed 20% on the full £7.80 which is perfectly correct if, in your other job, you earn more than £11,500 per year as your other job has "used up" all your tax free allowance.
the extra 4% may be accounted for by your NI, which you will pay at the rate of 12% on only the amount in excess of £157 per week.
20% income tax + a bit of NI could easily work out of 24% of the gross as a composite figure depending on how many hours you worked that week.
tell us your figures per your payslip and someone will show you the actual
workings
- gross pay that week
- tax deducted that week
- gross pay year to date
- total tax paid year to date
- pension deduction (if applic)
- week number
I have actually been paid 3 weeks in one ago, these are the figures
- gross pay that week: £245.70 for 3 weeks so £81.9 a week for 10 and half hours of work per week
- tax deducted that week: £49.00 for 3 weeks, £ 16.30 per week
- gross pay year to date = it doesn't say but it's my first payslip with them, so it'll be £245.70 I reckon
- total tax paid year to date: 49.00
- NIC Employee= £10.64 for 3 weeks
- pension deduction (if applic)= none
- week number = 12
it also says Gross Pay - 12.07% HP on it, what does it mean?0 -
Holiday pay0
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The figures sound right:
Tax on £245 @ 20% = £49
NI on (£245.70 - £157 (Primary Threshold)) £88.70 @ 12% = £10.64
Had they paid the three weeks separately you'd have paid the same tax but no NI as your weekly pay is below the primary threshold, in future you should try to ensure you are either paid every week or every month rather than accumulating several weeks into one pay.0 -
as Agrinall shows, the figures are correct to the pennyThe figures sound right:
Tax on £245 @ 20% = £49
NI on (£245.70 - £157 (Primary Threshold) £88.70 @ 12% = £10.64
Had they paid the three weeks separately you'd have paid the same tax but no NI as your weekly pay is below the primary threshold, in future you should try to ensure you are either paid every week or every month rather than accumulating several weeks into one pay.
income tax @20% is applied to the whole £ value only of your gross pay (the 70p is ignored). It is a second job, so you could not hand in a P45 as you had not left your first job, therefore you were correctly given the BR code, and so taxed at 20% on the full £270. Your BR code is correct as you earn significantly more than £11,500 per year in job 1 so should not get the code on job 1 changed as it will be of no benefit to you at all.
The next time you are paid the calculation will be slightly different because income tax works on a cumulative basis, so for example, if you earn £81.90 per week then next payday (week 13) you will have year to date earnings of 245.70 + 81.90 = 327.60. You will be taxed on 327 x 20% = £65.40 but have already paid £49 tax in week 12, so in week 13 you will pay 65.40 - 49 = £16.40 income tax
NI is applied exactly as shown by Agrinall.
It is calculated in isolation (not cumulatively) every time you get paid, hence his comment about it would have been lower if you had been paid for each week separately because the £157 is applied to each time you get paid (ie you were paid once at the end of the 3rd week working there), not each week you are being paid for (ie the 3 weeks you are being paid for)
next week therefore, week 13, you will earn £87.90 and will pay no NI at all given 87.90 - 157 = zero
so provided you continue to get paid every week, and earn the same amount every week £87.90 you will be left with around £71.50 per week take home pay. It will vary by a few pennies every now and then when the whole £ cumulative catches up with the pennies and so increments by £10
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