How do you work out tax?

Sunny_Bear

Ive had a letter from the OR sainf about the IPA to collect the tax from the nil tax code. It states the amount I put on my form when I filled it in. Ive since had a payrise and if Im on a nt code this month, how will I know what to pay? Also, Im due some back pay so would usually pay tax on this too?

I'm confused, and hoping the nt code isnt implyed this month so its all sorted on its own!!!

HelzBelz

Are you employed by a company or self employed?

maxmycardagain

i thought the OR has to calculate what you have to pay him, not you

it will be in the form of an IPA wont it?

you just pay what he asks for (send me the rest)

maxmycardagain

HelzBelz wrote: »

Are you employed by a company or self employed?

hes had a payrise so i doubt hes s/employed! :rotfl::rotfl:

skylight

Sunny, http://www.thesalarycalculator.co.uk/ Try here with just your new gross income. Dont mention the backpay - the OR just wants the amount you would pay on a regular basis, that would include overtime if its contractual or you know you get it on a regular basis. backpay would be a one off.

Although the OR will work out the actual amount, at least you will have an idea of what to put on the forms you need to send back.

HelzBelz

maxmycardagain wrote: »

hes had a payrise so i doubt hes s/employed! :rotfl::rotfl:

Yes, but surely there would be a HR/Payroll dept who would deal with tax codes so OP wouldn't be asking

Sunny_Bear

Im employed,
On my form that I signed it said £291, but now Ive had a pay rise, its going to be different from that. Will the OR send out a new form with the new amount ionce Ive told him the pay increase?

Also, do I tell them about the back pay? I dont have an IPA as no surplus but for 1 month it could push me over the £99?

tommo20

Hi,

It's all been pretty much covered above.
I think some OR's are slow with the paperwork.
I went BR at beginning of september.
Today received a payslip from my pension provider .. still no nil tax code.
My OR has instructed an insolvency service (Moon Beever) who sent me a letter agreeing with my estimate of my monthly tax paid. They ask for payslips every month and have told me I need do nothing as they will calculate the payment. They also said that I need not pay anything until the nil tax is showing on my payslip
I only say this as the Moon Beever letters arrived after I sent the signed IPA back to the OR. I don't know if they deal with all the nil tax code IPA's but I have seen them mentioned quite a few times in relation to this in the short time I have been posting
Good luck with your new debt free life.