New Income Tax Checker

mikeyoung

Can "salary sacrifice" be added as an option? I bought a push bike through the governments "salary sacrifice" scheme and am not sure I am getting the right pay but am not sure how to check?

Chantelier

mrkbrrws wrote: »

For 2011/12, you have a personal allowance of £7,475 and the first £35,000 of taxable income is at basic rate.

A total income of over £42,475 would put you into 40% (on the excess only), so you should not be paying 40% tax based on the figures provided.

Thanks for this that explains that :T

Tunstallstoven

Hi there

A simple question I think, but I did not see it answered in the thread. Sorry in advance if it is a silly question!

As I understand things there rare two different rates (currently 10.4% and 12%) of NI dependent on whether you are "Contracted in" or "Contracted out".

Which one does the calculator use and is there provision to switch between the two?

Also, can I tell by looking at my payslip or P60 whether I am contracted in or out?

Cheers

Max

mimi_buzzard

Hi,
Under the advice of this website I finally used the online calculator to try and check my tax code. I have been on the code BRM1 for almost a year now and according to the calculator it means that I am not getting the normal allowance.

1) does anyone know how long BR codes are supposed to last for as I don't think I am still new to my job and surely it should have changed by now?!?

2) Shoud I investigate the 1 in my tax code? - i don't have any allowances or benefits in my pay and i am unmarried with a teachers pension.

I have tried phoning my tax office but always end up on hold for ages and give up. Does anyone know if this is worth persuing? I am a stressed out teacher not sure if this is worth the hassle...

Mimi

System

Mimi

If I have understood correctly, you have 2 sources of income.

1 - Your PAYE job
2 - Your teachers pension

Can you confirm if this is correct ?

If correct - is it the BRM1 tax code that is being used for the job or is it for the pension ?
What tax code is being used for the 2nd source of income ?

The "M1" suffix = month 1 basis and this would normally be changed by HMRC much sooner than seems the case for you. (But it may be correct)

mimi_buzzard

Hi BAA1

I do not get my pension as an income (I am only 27!) I am just paying into my teachers pension direct from my monthly salary. My only income is my PAYE job.

I am guessing that the BRM code is being applied to my job.

I have now been on the BRM code 9 months so just wondered if I should ask them if this is going to change soon?

System

Ah, okay, my mistake.

Then when you started at this teaching job you should have handed in a P45 from a previous employment or if no P45 you should have been asked to complete a P46 when you started the teaching job.

Anyway, you need to phone HMRC and tell them you only have this one job and you need to get your tax code corrected.

For this tax year you should be on tax code 747L which gives you £7475 tax free allowance.

HMRC will owe you a refund from last tax year too, but they may ask for info from your P60 (which should arrive from your employer soon)

The sooner you contact HMRC the better so that this current year's tax code is corrected.

mimi_buzzard

I did indeed hand in a P45.

I will get in contact and sort it out.

Thanks for all you help!

gazza26

I wonder if anyone can help me.

I have been trying to work out using the income checker the different tax amount I would pay when I adjusted pension amounts. I am quite borderline on the 40% tax rate so eager to get it right to ensure I will stay under the 40% tax line and hopefully ensure I, my non working wife, keep getting the child benefit next year.

So here's my problem I have checked on the income tax checker on here MSE and checking this against my payslips national insurance is correct but the tax seems to be £50-80 pounds out. I don't think there is anything complex with my pay I don't have any benefits - health - car etc. the only thing i have is that i pay £175.69 towards my pension per month. I'm on a tax code 747L.

I found a tax calculator within the HMCR site today onto which I put all the details from my payslip but it didn't take any account of the pension amount but the tax amount showing on my payslip matched.

I can't believe that tax checker is so wrong when it hasn't been in previous years that I have checked. Also with all these stories coming out of HMRC about people being taxed incorrectly I just wonder if I'm one of them.

Any advise from you well informed people would be much appreciated.

jem16

gazza26 wrote: »

the only thing i have is that i pay £175.69 towards my pension per month.

That will make the difference. If your pension payment come out of your gross salary, you will pay less tax as the pension payment is taken out and then you are taxed. Most of these checkers assume the pension payment is from your net salary.

Post up figures and we can check.

Also with all these stories coming out of HMRC about people being taxed incorrectly I just wonder if I'm one of them.

Your tax code is the normal 747L so you are not one of them.