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income tax bands help needed
b45ter
Posts: 10 Forumite
in Cutting tax
Hello, I earned anoher 5 pounds in my wages this month compared to last month. whoopie! but got taxed an extra £51! boooo. Tax codes still the same everything the same. What's going on?
Please help.
Please help.
0
Comments
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Your tax code changed last month to give effect to the additional personal allowance. This would have given you a reduction in the tax compared to August of £10. However, because the effect of the change is cumulative you would also have received the £10s for the months of April to August, and extra £50.
That extra was a one-off catching up exercise so just looking at the September and October deductions gives a false impression of a tax increase. Compare October with August or an earlier month.
The odd £1 would be 20% of your extra £5.If it’s not important to you, don’t consume it0 -
last month (september) you probably benefited from the change in tax code from 543L to 603L.. it should have reduced your tax by 60 (compared to august) .
This month you only gain by 10 (compared to August).... so if your gross salary was the same you would expect to pay 50 more this month than last but 10 less than august0
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