Tax rebate has arrived! But a little low?

garreh

I've just received a weekly payslip of £1,026 which includes last weeks pay of around £230.

This is a welcomed rebate but considering my gross income is £10,380 and I've paid £2,076 in tax -- does this seem right because I put these figures in the rebate calculator found here but it doesn't add up. Could this be because of the first 5 months tax code was 543L and changed to 603L from Sep onwards?

chrisbur

garreh wrote: »

I've just received a weekly payslip of £1,026 which includes last weeks pay of around £230.

This is a welcomed rebate but considering my gross income is £10,380 and I've paid £2,076 in tax -- does this seem right because I put these figures in the rebate calculator found here but it doesn't add up. Could this be because of the first 5 months tax code was 543L and changed to 603L from Sep onwards?

I am assuming that your net pay was £1026 which would mean that your tax rebate was about £810.
As at week 35 on tax code of 603L your freepay (what you can earn before tax is due) is about £4065. If you take that away from your £10380 that leaves £6315 on which tax is due, which at 20% is £1263. You had paid £2076 and had a rebate of about about £810 which means you have paid about £1266, which is about right. The difference is due to rounding and my estimating the rebate figure. If the actual figures are very different you can put up the actual figures and I will rework it.

As far as the rebate calculator is concerned it is not intended for working out tax due during the year, it only gives correct figures for earnings at the end of the tax year.

garreh

chrisbur wrote: »

As far as the rebate calculator is concerned it is not intended for working out tax due during the year, it only gives correct figures for earnings at the end of the tax year.

Ah that explains it! I've calculated it based on that and heres what I get...

Pay on Fri 5th Dec (weekly pay):

£1,026[COLOR=Red] [COLOR=Black]- £235[/COLOR] (weeks pay)[/COLOR] = [B]£791[/B] [B]rebated[/B]

Tax paid so far this year: £2,076

Should of paid:

£10,380[I][COLOR=Red] (gross so far)[/COLOR] [/I]- ((£6,035[I][COLOR=Red](allowance)[/COLOR][/I]/52)*34[COLOR=Red][I](week pay #)[/I][/COLOR]) = [B]£6434 taxable[/B]

Deduct 20% Basic rate:

£6,434 * 0.20 = [B]£1,286 (tax should of been paid)[/B]

Calculate rebate:

£2,076[COLOR=Red] (actual paid tax) [/COLOR]- £1,286 = [B]£790 rebate[/B]

Which is almost exactly the figure I got from my first calculation

Thanks for your insight!