New Income Tax Checker

singhini

I just clicked onto the New Income Tax Checker 2017/2018 tool and I have a question: Why does it say the personal tax free allowance is £11,509 (I thought it was £9 less)?


https://www.moneysavingexpert.com/tax-calculator/

polymaff

singhini wrote: »

I just clicked onto the New Income Tax Checker 2017/2018 tool and I have a question: Why does it say the personal tax free allowance is £11,509 (I thought it was £9 less)?


https://www.moneysavingexpert.com/tax-calculator/

(Today) the site MSE copied this from makes assumptions about accounting year 2017/18 - 13 by four-weeks in the year, 364 days in the year.

That might explain

chrisbur

singhini wrote: »

I just clicked onto the New Income Tax Checker 2017/2018 tool and I have a question: Why does it say the personal tax free allowance is £11,509 (I thought it was £9 less)?


https://www.moneysavingexpert.com/tax-calculator/

The figure used is to match aprox the figure actually used in the tax tables to work out the PAYE due. Your tax code is arrived at by taking your allowance and removing the last number so an allowance of say £11509 and £11500 would both give a tax code of 1150L, this would result in the person with an allowance of £11509 paying a bit extra tax than they should. So everyone gets the top of the allowance and some pay a bit less but no-one pays more than they should.
In fact it is a bit more complicated than that as the figures are then adjusted a bit so that they can be equally divided by 52 weeks and 12 months so weekly paid get a total of £11509.68 and monthly get £11509.08 for their tax free allowance on code 1150L
You also get a little bit more of un-taxed income as tax is calculated on full pounds only so if say your taxable income less your tax allowance at the year end was £500.99 you would pay tax on the £500 but nothing on the 99p.

This only applies to the tax as worked out by PAYE when you are paid if for some reason HMRC had to calculate your tax due they would use the correct tax allowance figure though they still only tax on full pounds.

jpalmerzt

Need some help, please!

2017- 2018 Tax Year

Total Earnings - 13677.39
Tax Paid - 1392.60
Tax Due - 435

National Insurance - according to the figures I should have paid £661.61 - I have paid amount around 1000 plus.

NI Office said to use gross pay per month on each payslip - £486 then times the result by 12%

all the figures are wrong?

can anyone help with this, please

molerat

jpalmerzt wrote: »

Need some help, please!

2017- 2018 Tax Year

Total Earnings - 13677.39
Tax Paid - 1392.60
Tax Due - 435

National Insurance - according to the figures I should have paid £661.61 - I have paid amount around 1000 plus.

NI Office said to use gross pay per month on each payslip - £486 then times the result by 12%

all the figures are wrong?

can anyone help with this, please

NI is due per pay packet, if not paid a regular amount some times you could pay a lot and others nothing. You cannot work it out on the whole year pay. What were you paid each month ?

Tax all depends on your tax code. If you were paid irregular amounts with an M1 tax code you could have been over taxed.

RG2015

chrisbur wrote: »

The figure used is to match aprox the figure actually used in the tax tables to work out the PAYE due. Your tax code is arrived at by taking your allowance and removing the last number so an allowance of say £11509 and £11500 would both give a tax code of 1150L, this would result in the person with an allowance of £11509 paying a bit extra tax than they should. So everyone gets the top of the allowance and some pay a bit less but no-one pays more than they should.
In fact it is a bit more complicated than that as the figures are then adjusted a bit so that they can be equally divided by 52 weeks and 12 months so weekly paid get a total of £11509.68 and monthly get £11509.08 for their tax free allowance on code 1150L
You also get a little bit more of un-taxed income as tax is calculated on full pounds only so if say your taxable income less your tax allowance at the year end was £500.99 you would pay tax on the £500 but nothing on the 99p.

This only applies to the tax as worked out by PAYE when you are paid if for some reason HMRC had to calculate your tax due they would use the correct tax allowance figure though they still only tax on full pounds.

My son has a mixture of PAYE and freelance income and completes his tax form online. Does the explanation above account for him having to pay extra tax (over and above his PAYE deductions) when his actual freelance income was zero for the last tax year.

Dazed_and_confused

If it was no more than about £4 maximum then probably yes (the extra £9 allowance given during the year saves £1.80 for a basic rate payer and £3.60 for a 40% payer).

More than that there are likely to be other things involved.

RG2015

Dazed_and_confused wrote: »

If it was no more than about £4 maximum then probably yes (the extra £9 allowance given during the year saves £1.80 for a basic rate payer and £3.60 for a 40% payer).

More than that there are likely to be other things involved.

.

Thanks.

I think he said he had to pay an extra £6 or £7 which I found odd because his only income that year had been PAYE and I assume that his employer (large corporate) had deducted the correct amount.

jpalmerzt

Taxable Pay

April - 17 - £2004.33 - NI £175.28 - Tax £209
May 17 - £2211.78 - NI £202.06 - Tax £250.40
June 17 - £2376.06 - NI - £221.85 - Tax £283.40
July 17 - £1769.97 - NI - £47.03 - Tax £62.20
July 17 OT - £133.32 - NI £16.00 - Tax £26.60
Aug 17 - £1962.09 - NI - £171.84 - Tax £200.60
Sept 17 - £2732.98 - NI - £265.50 - Tax £354.80
Oct 17 - £1059.68 - NI - £53.17 - Tax £20.20
Total Net Pay - £11,490.28 - Total NI - £1252.73 - Total Tax - £1507.20

According to the tax office, they have recalculated the earning as my previous employer made an over payment to me which they claimed back the Tax and NI.

The new overall figure earned is £13677.39 and the total tax paid was 1392.60 which mean I am due a rebate of tax as I should of only paid £435.

I am trying to establish if I have overpaid NI?

Many Thanks

molerat

What happened after October ?

As I said NI, unlike tax, is on a per pay packet basis and not over the year. There is nothing to reclaim. The NI figures quoted do not agree with that wage but pension deductions (6.5% ?) could account for that.

The monthly tax deductions are correct for PAYE but if you have no income since October then there is some tax to reclaim.

Not sure I understand the £13677 as you earned £14250.