Have I been over TAXED?

willgraham

just started work over 2 weeks ago after being unemployed for the past 18 months.

i recieved my first payslip today and was deducted £29.04 (from my wage of £132.24)

is'nt this alot
am I being over taxed?
I thought the first £4,500 was tax free? so why am I already being taxed

:mad:

do I have to contact them (the taxman) to claim my money back or what?

hilary1

willgraham wrote:

just started work over 2 weeks ago after being unemployed for the past 18 months.

i recieved my first payslip today and was deducted £29.04 (from my wage of £132.24)

is'nt this alot
am I being over taxed?
I thought the first £4,500 was tax free? so why am I already being taxed

:mad:

do I have to contact them (the taxman) to claim my money back or what?

You will have been classed as emergency tax if you didnt have a p45. But dont worry the new tax year for weekly paid employees starts next week and you should pay the same as everyone else from then (code 513L I think) unless notified by IRev. I would advise ringing the IRev and ask about claiming your tax back that you have paid this tax year as you wont automatically get it back in your wages now and you might as well be front of the tax queue.

CIS

You dont get to earn #5035, befroe you pay tax, the system doesn't quite work like this.

If you pay period was fortnightly, then your tax code would then be applied as 1/26th of the full rate to each pay period.

You would have tax applied o all income in that 2 week period over #193.

The first (#2150/26)= 83 over that amount would be taxed at 10%, then you would be in the 22% band.

Mr_Proctalgia

I too am in a similar position. I stopped work last March and took a year off, 6 weeks ago I started work again and was being taxed to death, upon enquiry I found out I was still paying for a company car and BUPA, I spoke to the tax peeps who were very helpful and explained things, I had all the last P45/P60 and asked why they had not changed my banding as not in receipt of P11D and they said they ignore that when not received and carry on with the last information received.

So why do we bother??? Still it is sorted now and I have a new notice of coding arrived a few days ago. Still waiting for a nice refund though.

nomoneytoday

You will be due a refund. The annual allowance for last year was £4895.

coffeeandfags

Im in the same boat as you, started 2 weeks ago after a long break to bring up kids.
Got my first payslip yesterday and only paid around £1.50 from £118. Apparantly, if you dont have a P45, your employer should fill out a P46 which means you dont pay emergency tax. My employers obviously did that, so im happy!!

willgraham

Thanks for all the input guys.

This whole tax system is still really confusing to say the least
someone correct me if I'm wrong on this

(going by this years tax allowance)
If I earn between £0- 2,150, I will be taxed 10%

If I earn between £2,151 - 33,300, I will be taxed 22%

If I earn upto £5,035 in a year, I won't be taxed because £5,035 is the annual Personal allowance

but if I earned in a year just over £5,035 say for example £5,036, I will be taxed at the whopping 22%

Suewre

If you earn up to 5035, no tax

The next 2150 (ie up to 7185) - 10% tax on the 2150

After that you pay 22% on the rest up to the next threshold

CIS

You will only be taxed on the excess earnings over £5035 p/a.

After you earn £5035, the next £2150 is taxed at 10% and then after that at 22%.

willgraham

If £5,035 is the annual tax allowance
then why do they tax you 10% when you're earning between £0- 2,150
or even 22% when earning between £2,150 - 5,035

Careful_ly

willgraham wrote:

just started work over 2 weeks ago after being unemployed for the past 18 months.

i recieved my first payslip today and was deducted £29.04 (from my wage of £132.24)

is'nt this alot
am I being over taxed?
I thought the first £4,500 was tax free? so why am I already being taxed

:mad:

do I have to contact them (the taxman) to claim my money back or what?

Don't forget that if you have been getting benefits while not working, unemployment or incapacity, that these count towards your allowances.
HTH