New Income Tax Checker

Mikeyorks

kink wrote: »

Anyone explain why the "0" is on wage sliip?

It doesn't signify anything.

Some people are on a non cumulative code and will have a '1' following the 647. Your employer, instead of placing a space where the '1' does not apply .......... appears to have opted for a '0' instead?

kittymel1

would it be possible to include company car, fuel card etc. or seperate tool for company car verses private car for work

Sasdad

Paul_Herring wrote: »

Run that by me one more time... how on earth can your state pension be more than your personal allowance?

(And 'negative personal allowances' are taken into account on this calculator - that's what the K tax codes are for.)

If your total net income, including your state pension is more than £29230 p/a and your state pension is more than £6475 p/a, then you will have a negative tax code. The reason being, your personal allowance is reduced by your state pension. My state pension is £7575, so minus £6475, I have a negative personal allowance of £1100- and a tax code of K11.

The overall effect is that you pay more than 20% tax on your income.

This has been confirmed by the HMRC.

Paul_Herring

If your total net income[...]

My assumption was the total net income was only the state pension.

The reason being, your personal allowance is reduced by your state pension. My state pension is £7575, so minus £6475, I have a negative personal allowance of £1100- and a tax code of K11.

If you're getting a state pension, your tax free allowance is not £6,475, it's £9,490

sylviesinc

Tax allowance increases to £9490 at age 65 but women get state pension at 60.

maustinsj

Sasdad wrote: »

The overall effect is that you pay more than 20% tax on your income.

No, you won't. You'll still pay 20% on your taxable income since you will never get less than the basic Personal Allowance of £6475 (the personal age allowance you get at 65 is reduced depending by how much your total income goes over a set figure). Personal Allowance is not the same as a tax code.

Your other pension(s) may get a K code, but this is to ensure that the excess state pension is also taxed properly so that overall, your income above £6475 is taxed at 20%, since the State Pension is never taxed at source (unlike other pensions/employment income).

If you add up the total tax paid on all of your income, take off the PA then do the percentages, it'll be 20%. If it's more, it means that your pension provider has made a mistake. You'll get a refund after you send in your tax return.

ajm1984_2

Can anyone help explain things to me? I used the tax calculator for 08/09 and it said that with a gross pay of 8658.30 I should pay £524 income tax for that year. But my P60 says I was deducted £1127.40 tax that year. So I sent the tax office my P60 and asked them to review my tax for that year, and they have just written back saying that I did not over spend. - does this mean the tax checker is wrong?

It may be more muddled by the fact that in oct that tax year I changed jobs that were paid different wages (went from earning £21k to £18k). Does this explain why I'm not really owed money? I'm just really confused! Can anyone help?

mrkbrrws

AJM, the simple explanation is that you would pay about £524 Income Tax on an income of £8,658 for the whole year, but you earned it in 6 months and had a previous employment. You can't take one job by itself, it is the total income for the tax year that matters.

If you add together your gross pay from both employments and put that into the calculator it should give the correct answer, but bear in mind that you will have to check the total tax deducted from both employments against the result.

mitsumike

Can anyone tell me if "total"income" in HMRC speak includes the State Pension as well as any other pension income. i.e. Do they use the state pension for a second time after already deducting it from the HPA? Thanks>

zygurat789

All pensions are included in total income.
What do you mean by HPA?