tax an ni amount...

postingalwaysposting

every month the amount of tax and ni that is deducted from my wages increases and increaes. even if i dont do any over time they still take more :rolleyes:. If i do do overtime i end up getting paid 25p per hour . its getting to the stage now that my sister who is taking home 4k per year more than me is getting taxed the same or a little less. How can this work? I want to phone them (will have to be next week now) but i dont know what i am talking about or even who to phone lol. btw i have never questioned anything like this before (as i always thought the tax people got it right) but this is getting stupid. thanks in advance

WHA

Give us some details from your payslip. We need:-

Tax code - should be something like 489L or 489L Wk1, or BR or 512T
Gross pay for week or month
Tax deducted for week or month
NI deducted for week or month

Gross pay for year to date
Tax deducted for year to date

Also,

Are you a director?
Have you any underpayments of tax from previous years being collected this year?
Do you have a company car? and if so, does the company provide all the fuel?
Any other benefits, i.e. gym membership, BUPA, etc.

If we have some more information, we can see whether the tax and NIC is correct, and if not, where the problem lies!

postingalwaysposting

latest pay slip (i have been working for this company since august)

tax code - 489L month 1
gross pay (month) £802.02
tax paid - £65.55
ni paid - £43.34

taxable pay to date - £4.016.03
tax to date - £277.59
ni to date £191.51

I am at the bottom of the store so have none of those, but my pension, unino and social comes out too but thats seperate to teh tax and ni.

When its wrote down like that it doesnt sound much but when i was at my previous job i was doing the same hours and my tax/ni never rose above £25.00?

ctm_2

It's the 'month 1' bit that is making you pay more tax.

The tax system works on a cumulative basis, so that over the whole year you pay the right amount and receive the correct amount of allowances etc.

The code you are on is non cumulative, you just get the monthly proportion, and no account is taken of previous amounts paid.

You need to contact your HMRC office and ask why you are on a month1 code, and what you need to do to get put back on a cumulative tax code.

jimclark1967

postingalwaysposting wrote:

latest pay slip (i have been working for this company since august)

tax code - 489L month 1
gross pay (month) £802.02
tax paid - £65.55
ni paid - £43.34

taxable pay to date - £4.016.03
tax to date - £277.59
ni to date £191.51

I am at the bottom of the store so have none of those, but my pension, unino and social comes out too but thats seperate to teh tax and ni.

When its wrote down like that it doesnt sound much but when i was at my previous job i was doing the same hours and my tax/ni never rose above £25.00?

Those figures look about right to me. Did you only work for part of a tax year at your previous job? In any case the NI paid should be the same if you earn the same each month. Your sister might be paying too little rather than you paying too much.

JC

postingalwaysposting

jimclark1967 wrote:

Those figures look about right to me. Did you only work for part of a tax year at your previous job? In any case the NI paid should be the same if you earn the same each month. Your sister might be paying too little rather than you paying too much.

JC

in my previous job i worked there for 3 years and it ended in march 05

no its fluctuated from £46.24 the highest and £30.78 the lowest (and these were the months i did no overtime

thanks then if nothing can be done i will just have to put up with it lol

highlighter

postingalwaysposting,

Take a look at this website, pop your salary in and it may give you a better idea of how much tax and ni you should pay

ctm_2

postingalwaysposting wrote:

in my previous job i worked there for 3 years and it ended in march 05

no its fluctuated from £46.24 the highest and £30.78 the lowest (and these were the months i did no overtime

thanks then if nothing can be done i will just have to put up with it lol

See my post above for the reason you may be paying too much, and how to rectify it.

postingalwaysposting

i saw that ctm i might phone them and check, they can only say no you are on the correct code after all

ctm_2

postingalwaysposting wrote:

i saw that ctm i might phone them and check, they can only say no you are on the correct code after all

If this is your only job and is the only job you have had this year, then no, you aren't on the right code. You aren't gaining the full benefit of your personal allowance and 10% rate of tax.

Is this the only job you have had this year, and what paperwork did you give them when you started. Did you hand in a p45, or sign a P46, or neither?

Ems!

postingalwaysposting

Haven't done the calcs as others have done them, BUT just want to reinforce what ctm is saying - if you are on a M1 code and didn't work between march 05-aug 05 you are losing out on months worth of personal allowance and 10% bracket.
You should defo phone tax office to get them to sort it out, you probably shouldn't be on a M1 code and will be due some tax back!!