Have I been over TAXED?

Suewre

Because they disregard the first 5035, and then tax you on the rest.

willgraham

Suewre wrote:

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

Do they tax you straight way or only until your earning crosses the £5,035 threshold.

willgraham

Can someone explain to me what BR is? and also BACS?

on my payslip it states my tax code is BR
and my pay method as BACS

Careful_ly

BR is base rate this means you have not been given any tax free allowances and tax has been taken at 22% on all your earning

BACS is the method by which your wages have been transferred to your bank, something like bank automated credit service

HTH

Savvy_Sue

willgraham wrote:

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

They don't.

As your tax code is BR, a phone call to the local tax office would probably help get this sorted. Ask your employer which office this is.

Spendless

willgraham wrote:

Can someone explain to me what BR is? and also BACS?

on my payslip it states my tax code is BR
and my pay method as BACS

When I had code BR, it was because it was thought I had 2 jobs (long story but I hadn't). I had to ring the tax office (the tax office where my employers h.o/wages dept was) and put everything in writing to them. I then received a refund.

willgraham

I just recieved my first paycheck of the new tax year today
but noticed that I'm still being over taxed on code BR!!!

why is this?

I thought because this is the start of the tax year, my tax code should have revert to the normal rate.

isasmurf

Have you ever completed a P46 for this employment?

Your employer can only use the tax code notified to them by HMRC. If HMRC haven't notified them then are forced to use BR. HMRC can only notify your employer of your tax code once your employer has request a tax code from them, which they can't do until you give them either a P45, or P46.

Get in touch with your Personnel department and ask them what you should do to get the correct tax code. If you get no joy there, then get in touch with your local tax office.