confused about tax - what is it and do i pay it/have to pay it?

littlepinkstars44

ok so what is tax? and i dunno if i pay/ever have paid it.

I can only find 2 wage slips one from August and one from Sept. I don't think i picked up my Nov one yet lol.
I don't generally keep them, so i don't have any others lying about. (even though i've been workin since i was 16)

But on my Sept wage slip it sasy under deductions
Nat Ins: £23.59.........Balance £45.90

What is this?

Then on my August payslip it says under deductions:
Tax £51.20- (as in a minus sign)
Nat Ins £22.31........................Balance £22.31

Then under that it says total deductions: £28.31-(minus sign again?)

Also on both of them they have a different tax code
on the August one it says 543L
and on the Sept one it says 603L
what i this?

jem16

littlepinkstars44 wrote: »

ok so what i tax? and i dunno if i pay/ever have paid it.

If you earn over £6035 in this tax year (April 08 to April 09) you will pay tax. How much depends on how much you earn. Basic rate is 20%, higher rate is 40%

I can only find 2 wage slips one from August n one from Sept. I don't think i picked up my Nov one yet lol.
I don't generally keep them, so i don't have any others lying about.

You should keep them. You might need them if you have paid too much tax and need to apply for a rebate.

But on my Sept wage slip it sasy under deductions
Nat Ins: £23.59.........Balance £45.90

What is this?

Then on my August payslip it says under deductions:
Tax £51.20- (as in a minus sign)
Nat Ins £22.31........................Balance £22.31

Then under that it says total deductions: £28.31-(minus sign again?)

Sounds like you normally pay tax of £51.20 each month. In September you paid no tax as all basic rate taxpayers got a rebate of £60.

Also on both of them they have a different tax code
on the August one it says 543L

That's correct. That's the normal tax code for most people. Personal allowance from April - September was £5435 so rax code of 543L

and on the Sept one it says 603L

That's correct too. In September the personal allowance went up to £6035 so tax code of 603L. This is why you got a rebate of £60 as well.

littlepinkstars44

jem16 wrote: »

Sounds like you normally pay tax of £51.20 each month.

but thats a whole quarter of my wages

jem wrote: »

If you earn over £6035 in this tax year (April 08 to April 09)

I won't earn that much. i only started this job in June 2008, and am only a 9 hour contract
so my basic wage is £198 a month

jem16

littlepinkstars44 wrote: »

but thats a whole quarter of my wages


I won't earn that much. i only started this job in June 2008, and am only a 9 hour contract
so my basic wage is £198 a month

You should not be paying any tax at all on £198 per month.

I suspect the minus sign that you mentioned in August's wage slip was you getting a tax refund of £51.20 as perhaps you were on a BR code (all taxed at 20% and nothing tax free ) when you started in June. By August you were repaid that tax.

September seems to be then correct as you paid no tax and only paid NI. However why is your Balance £45.90 if the only deduction listed is NI?

littlepinkstars44

jem16 wrote: »

September seems to be then correct as you paid no tax and only paid NI. However why is your Balance £45.90 if the only deduction listed is NI?

I don't know, i don't even know what tax is! lol

I remember my old manager i in Claires saw one of my payslips n said i was on the wrong code or something a few years ago. And she sorted stuff out and i got bak like £1000! lol that was gone the next day though as i went on a massive shopping spree weeee!

Too bad i don't keep them then

jem16

littlepinkstars44 wrote: »

I don't know, i don't even know what tax is! lol

Perhaps you should go in and ask at work.

Too bad i don't keep them then

Might be an idea to start doing so then. Perhaps you can look at your November payslip and see what it says.

littlepinkstars44

jem16 wrote: »

Perhaps you should go in and ask at work.



Might be an idea to start doing so then. Perhaps you can look at your November payslip and see what it says.

Yeah, i'm not working again till Tue night.
I think personel closes at 5, and i start at 6.
Thats why i always get them late, cause personel is always closed when i'm working.

I get paid next Friday again, so i'll have 2 to look at!

vyle

littlepinkstars44 wrote: »

ok so what is tax? and i dunno if i pay/ever have paid it.

I can only find 2 wage slips one from August and one from Sept. I don't think i picked up my Nov one yet lol.
I don't generally keep them, so i don't have any others lying about. (even though i've been workin since i was 16)

But on my Sept wage slip it sasy under deductions
Nat Ins: £23.59.........Balance £45.90

What is this?

Then on my August payslip it says under deductions:
Tax £51.20- (as in a minus sign)
Nat Ins £22.31........................Balance £22.31

Then under that it says total deductions: £28.31-(minus sign again?)

Also on both of them they have a different tax code
on the August one it says 543L
and on the Sept one it says 603L
what i this?

Um, this might be an odd question, but how do you not know what tax is? It's pretty important stuff.

If you earn as little as you say, then any tax showing on your slips should be a rebate. If tax shows as a minus sign, it means you're getting tax paid back to you.

Also, keep your pay slips as you'll need them if you want to claim tax back in the future, or claim benefits.

littlepinkstars44

vyle wrote: »

Um, this might be an odd question, but how do you not know what tax is? It's pretty important stuff.

If you earn as little as you say, then any tax showing on your slips should be a rebate. If tax shows as a minus sign, it means you're getting tax paid back to you.

Also, keep your pay slips as you'll need them if you want to claim tax back in the future, or claim benefits.

no one has ever told me what tax is, just that i had to pay it thats all.
yeah i'm only a 9 hour contract, so 198 is my basic, some weeks i can do between 10-12 hours, just depends is someone has phoned in sick or not as we've had our hours cut so are all just working our contract hours up till Jan.

Have been told that i might be promoted to a shift supervisor after christmas +new year.
If i do my rate will o up from £5.52 an hour to £5.65 an hour, so more pennies! yay

Mikeyorks

littlepinkstars44 wrote: »

no one has ever told me what tax is, just that i had to pay it thats all.

A definition - the easiest I could find - just for you :-

http://www.redgoldfish.co.uk/viewglossary.asp?gid=95

...... couldn't find a pink site to get it from .... you'll have to settle for red.

trevormax

If you're only earning £198 per month before any tax and NI is taken off, you should not be paying tax or NI at all as both are below the monthly thresholds.

Income tax monthly threshold is £502/month
NI monthly threshold is aroung £453/month