Tax Codes

Obi167

Hello all, just trying to work out what tax I pay.

I get varying bonuses every month (overtime / shift and weekend bonus's) so thought it would be easier looking at one month.

My total payments pre-tax are 2303.57 inc. bonuses

I then have total deductions of 706.71

This is where I get confused, I don't know what deductions are taken before tax, (all are taken directly from my pay).

The deductions are;

tax 279.60
nics 172.94
pension 146.17
student loan 94.00
Union payment 14.00

My tax code on my payslip is 611L (payslip issued on 15.09.08 - so don't know if this £60 rebate has an effect).

Really what I want to know is what deductions do I pay tax on (i.e. pension?), am I paying the right amount of tax, and I want to check the £60 rebate thing, but am finding it hard as my pay is different each month depending on what I work.

Sorry if its a rambling mail, hope it makes sense.

fengirl_2

Your code of 611L reflects the new higher personal allowance, so you have had your £60 tax refund. Without knowing what last month's pay was, I can't tell you how much, but if your code number is correct, then your tax will be correct.
Tax and NIC's are calculated on your gross pay, less pension contribution, in this way you get tax relief on the pension. Student loans and union subs do not attract tax relief, so they will be deducted from your net pay.

CLAPTON

Tax is a cumulative tax so it depends upon your total earnings from april
while NI and student loan are based on your monthly figure.

your NI depends upon whether your pension scheme is contracted out of the second state scheme

so it might so something like this


gross salary 2303.37
pension payments 146.17
taxable pay = 2,157

student loan is 9% of (2303.37 -1250) rounded down i.e. 94
NI : is 9.4% of (2303 - 453 ) approx i.e. about 173

Tax I can't calculate on the information give because we need your accumulative to date figures form last month

also the normal tax code is 603L while you say your is 611L... do you know why the difference .. do you claim for some business expense?

Obi167

Thanks for your help, i'm going to ask my personnel dept about the tax code as I don't claim expenses etc. I presume 611L is a higher rate than 603L (being a higher number and all).

Thanks again

CLAPTON

yes 611L means you get £6115 allowed before any tax is paid whereas the 'normal' allowance is 6035... not a lot but there should be an reason.

Obi167

Thanks i'l check it out

Obi167

ah ha,

i think i have figured this one out now, I think the different tax code is due to claiming tax back for cleaning my uniform (forgot about that).

does this sound right?

thanks again for you help folks