£60 rebate a bit confused!

k8te

Hello,

Sorry its another thread regarding the tax, only just got my payslip and wondered if it is right.

My gross pay is £5661.44
My new tax code is 603L
I have paid £118.20 tax this year

I dont pay alot of tax as you can see, i got a refund but for £7.00 is this right? Surely if my tax allowance has gone up i should be entitled to all my tax back, or do i have to wait until the end of the tax year to ask for it? Will i get a deduction next month?

Sorry for asking, but i do so hope someone can enlighten me

Paul_Herring

Assuming that's six months pay from April 6th, then your tax looks a bit low actually.

Annual salary - (5661.44*2) = 11322.88
Allowance - 6035
Taxable income - (difference) 5287.88

Tax due for a year (5287.88 * 20%) = 1057.57

Tax due for 6 months to date (1057.57 /2 ) = 528.78

Yet you've only paid 118.2?

k8te

Thanks for your reply, looking at payslip:

Gross pay - £3801.17
Taxable pay £3611.12
Tax paid - £118.20

I do pay into a pension so far £190.05 this year.

Do you think i am paying too little tax

Kate

k8te

£5661.44 is my whole year gross pay

CLAPTON

it goes like this

gross pay to date (end september ) is 3801
taxable pay to date (i.e. after pension deduction ) is 3611.12

tax free allowance prorata 6035 x 6 (months) /12 = 3,017

so 20% tax paid on remainder of 593 i.e. tax to pay is £118.7

so almost exactly correct

chrisbur

You need to remember that it is not a £60 rebate but a £60 reduction in tax. If you have a rebate you also did not pay tax, if you add the rebate to the tax you would normally pay it should make you £60 better off, all else being equal.

k8te

Thanks guys, i knew it would be a deduction, and am aware i havent paid any tax for september, so am i likely to get a reduction (refund) next month aswell? And what about the tax i have paid, do i really have to wait until the end of the tax year to reclaim it?

CLAPTON

k8te wrote: »

Thanks guys, i knew it would be a deduction, and am aware i havent paid any tax for september, so am i likely to get a reduction (refund) next month aswell? And what about the tax i have paid, do i really have to wait until the end of the tax year to reclaim it?

based on your earnings to date then the tax you have paid is exactly correct.

if you continue to work and receive a payslip then your tax is recalculated each month

if by year end your total taxable earning are less than 6035 then you will have paid no tax as the tax is worked out each month