Heart thudding... about to cry - please help?

shelley81_2

Hello

I'm a long time lurker on the MSE boards, but this has made me post! You guys all know what you're talking about!

I have just received my pay slip for the month and I'm down by close to £200 due to an increase in my tax & NI... can anyone help?

I am paid £32,700ish and paid periodically. My tax code this year is 635L, I pay pension of approx £220 per period and I received a subsidised loan from my employer this period for travel which comprises of a £619 subsidy & the repayable portion is £413 - totalling £1032. I have paid £481 PAYE & £252 NI.

Looking at my payslip for last period I was on tax code 609L, paid the same gross amount (minus the £1032 loan) but only paid £363 PAYE & £194 NI. The code isn't that different is it?

I don't know how I'm going to pay all of my bills this month.:mad: Also, if this continues I won't be able to cope!

PLEASE HEELLPPPPP!!

PlutoinCapricorn

I am self-employed and have never been involved with such loans and pensions, but just wanted to say that I know what a horrible shock such unexpected events can give one. Are you paid each month? Could you have paid too little tax in the past and HMRC have realised this and are collecting it via your PAYE Code?

PlutoinCapricorn

You may be aware that employers deduct tax based on your tax code which is supplied to them by HMRC. HMRC set the code based on what they know about your affairs, so you and your employer need to keep them in the picture.

Are you talking about pament for March or April? It is possible that NI rates have gone up for the new tax year.

I would try not to panic, but take the payslip to the HR department tomorrow and ask them for an explanation. I do know that many people question the deduction amounts, but there is often a reason.

shelley81_2

Hello Pluto

Thank you for replying.

Yes, I'm paid monthly. It's possible the scenario you mention could be true, but an extra £200 per month? :eek: I'm just so scared in case this is a sign of things to come - I'll not be able to afford to keep my house... oh dear.
Edit: It's for April

I'll call payroll tomorrow and see what this is about...

Thanks again for replying.

PlutoinCapricorn

There are 2 main possibilities: personal allowances thus tax codes change as from April 6th, or HMRC has made some kind of end of year adjustment.

Your employer cannot change your tax coding, only HMRC can do that, and the employer must tax you based on the code. But they should certainly be able to explain everything to you.

Let's hope that this is a one-off.

shelley81_2

Thanks again! Yes, I do hope this is a one off... crikey. Calm now....wait for tomorrow...

System

If your tax code in your March pay was 609L this equates to you having a tax free personal allowance of £6095 or £507.92 per month.

For April a tax code of 635L equates to a tax free personal allowance of £6355 or £529.59 per month. On £32000 per annum you are not liable for tax at 40% so everything above your tax free allowance is taxable at 20%.

Therefore I would expect to see you pay less tax in April than you did in March. There must be something else involved rather than just a change in tax code.

What was your code prior to March?

shelley81_2

Hi Pam

Thank you for your input. My tax code has been 609L since September 08 and before that it was 549L and so on.

I'm so confused as I thought the same as you, as usually my tax goes down a little whenever my tax code is changed.

Perhaps it is some sort of year end adjustment as PlutoinCapricorn has suggested?

System

shelley81 wrote: »

Hello Pluto

Thank you for replying.

Yes, I'm paid monthly. It's possible the scenario you mention could be true, but an extra £200 per month? :eek: I'm just so scared in case this is a sign of things to come - I'll not be able to afford to keep my house... oh dear.
Edit: It's for April

I'll call payroll tomorrow and see what this is about...

Thanks again for replying.

What date do you usually get paid if your latest payslip is for April because it seems very early?

shelley81_2

I get paid every 4 weeks and tomorrow is payday - Iusually get my payslip in the post the day before.

blue_monkey_2

It is year end, do you get a P11D from this employer?

I am wondering if you have had to pay tax on your travel expenses, there is more information here http://www.hmrc.gov.uk/employers/fagp11d-03.shtml but 20% of £1032 is around £200.

Have you worked at the same employer all of this time?