New Income Tax Checker

jpalmerzt

Thank you

I stopped working in October and I have spoken to the Tax office regarding the Income Tax and they agreed I have overpaid. The National Insurance figures are the ones off the payslips and are as shown above. How exactly can you tell if you have overpaid if it's not calculated in the same way?

NI department cant assists as apparently they haven't got the figures yet for this year which is why I asked on here.

The 13677.39 was the correction according to the Income Tax as the previous employer reclaimed Tax and NI ect as they overpaid me

Thanks again for your help.

molerat

There are only limited circumstances where you can "overpay" NI and your situation does not fall into one of those categories. Quite simply in 2017-18 you have a monthly NI free allowance of £680 after which you pay 12% (up to £3750 after which you pay 2%). This is not worked out over the whole year, it is per pay packet.

jpalmerzt

That's cleared that up!

Many Thanks

datlex

Pension calculation neither allows for weekly or qualifying earnings.

#confused&proud

Hi,

I earn well under £46K per year however seem to be falling within the 40% tax bracket.

I received a bonus in April that could potentially explain this however in May & June my salary was OK and then dropped suddenly in July. HR explained that some of my salary still fall within the 40% bracket which makes absolutely no sense to me, could someone explain further?

Thanks,

molerat

The most likely answer is that, due to the way PAYE works, you would have overpaid tax in April because of the bonus, May and June paid that back and July would be your normal tax. If you post all the monthly figures up someone will check.

saving_junkie

What is "pension HMRC" box in the tool?

Stato71

Any chance of adding information about the Child Benefit tax repayment for those with salaries that it effects. The elements which impact how HMRC calculate the payback figure are a bit confusing with Pension and Gift aid and other things in the mix. It's not as straightforward as it first appears.

JohnMRG

Hello,
For many years, I have been aware that in order to calculate my PAYE correctly, I need to add £9 to what is usually quoted as my Personal Allowance.
For example, last tax year, my tax code was 1150L suggesting an allowance of £11,500, but to get my calculations right, it seems I should use the value £11,509.
This seems to have been the case as long as I can remember.
I have just always assumed this, but I have two questions:
1) Am I actually right here, or is something else going on that I'm not aware of?
2) If this IS right, why don't they quote the correct value (e.g. £11,509) :doh:

chrisbur

JohnMRG wrote: »

Hello,
For many years, I have been aware that in order to calculate my PAYE correctly, I need to add £9 to what is usually quoted as my Personal Allowance.
For example, last tax year, my tax code was 1150L suggesting an allowance of £11,500, but to get my calculations right, it seems I should use the value £11,509.
This seems to have been the case as long as I can remember.
I have just always assumed this, but I have two questions:
1) Am I actually right here, or is something else going on that I'm not aware of?
2) If this IS right, why don't they quote the correct value (e.g. £11,509) :doh:

Putting a 9 on the end of your tax code gives a close approximation of the figure used to calculate your tax deductions.The actual figure that is taken from tables A of the HMRC Pay Adjustment Tables for tax code 1150 is 11509.68 for weekly paid and 11509.08 for monthly paid. These tables can be seen here....
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/503683/Tax_Tables_A__2016-17__12_15.pdf

These tables cover ten possible tax allowances for each tax code; so 1150L covers all allowances from 11500 to 11509, and then a bit of adjustment so that the codes divide by 52 or 12 To avoid anyone loosing out the highest allowance is given to all.

This results in most people very slightly under-paying tax and if HMRC have no need to recalculate the tax due that is the end of it.

If however HMRC do need to recalculate for any reason eg. a self assessment is done, a tax refund is due, a backdated adjustment to code say for uniform cleaning, or any other reason then the correct tax allowance figure is used, not the table A figure.

Some people may have noticed this if they claimed an allowance for cleaning their uniform, often the rebate was slightly less than was expected as the additional code was added to their actual allowance so they lost that small tax reduction that PAYE gives them.