Help With My Tax Please - 647L

Grezz69

Im currently working with a new company who have as of yet got to set up a payroll system so its all done on a transfer from the owners account to my bank account.

now im earning £234 a week, and getting taxed on that bringing it down to £196 per week.

i started work on the 24th of August and got paid from that day monthly.

yet ive just come out of education and had to go on dole. when i got this job i recieved the tax code 647L. so i know that means i shouldnt get taxed on 6470 of my income. yet im still getting taxed £38 a week tax.

is this correct?

ive asked the manager who is currently doing the accounts and he said that he has had to give everyone the same tax code for now to cover the company for any tax benefit fraud etc. so he said if you can provide me with some evidence that i shouldnt be paying this much tax then he will recalculate it for me.

any help in this would be greatly appreciated.

im due next week to get £784 for a months work after tax. before tax its 936 a month roughly

should i still be getting taxed, or should i be getting taxed this much. ive found out some things online .

if somone could work this out for me and show me how it would be excellent.

im on £11,960 per year and its calculated as a montly basis, not a hourly one

and i started on the 24th of august this year with the tax code 647L yet got put onto the same code as everyone else due to my manager doing the tax from a online tax calculator.

i get £234 weekly which is reduced to £196 after tax.

I personally dont think this is correct.

thanks in advance!

Lokolo

Your £6475 is split across X, where X is the amount of times you will be getting paid.

As you are earning weekly, your £6475 is split over 52 weeks, which is £125.51 a week.

This is how much you can earn each week before paying tax.

Anything over this is taxed 20%.

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It is not worked out as pay no tax until you reach £6475, then taxed.

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http://listentotaxman.com/index.php?c=1&yr=2009&age=0&add=0&code=&pension=0&time=52&ingr=234&vw[]=yr&vw[]=mth&vw[]=wk

It shows a layout of what you earn weekly, monthly and yearly based on £234 a week.

dzug1

Your tax code is correct. It is not related to when you started work and is what everyone normally gets put on. It means that in a full year you have an allowance of 6475 - it does not mean you start out paying no tax and when you reach 6475 suddenly start paying it - it's spread out over the year.

What is less certain is whether it's being applied correctly - I don't fully understand your figures. Does that £38 reduction include national insurance as well as tax?

Lokolo

dzug1 wrote: »

Your tax code is correct. It is not related to when you started work and is what everyone normally gets put on. It means that in a full year you have an allowance of 6475 - it does not mean you start out paying no tax and when you reach 6475 suddenly start paying it - it's spread out over the year.

What is less certain is whether it's being applied correctly - I don't fully understand your figures. Does that £38 reduction include national insurance as well as tax?

Yes it does, I put £234 into listentaxman and it came out as £198 after everything.

noh

Looks like you are being taxed on a week 1 basis.
When you started the job did you give your employer a P45 or if not did you complete a P46?
For the 5 months of this financial year your allowance would be around £2697 you should not be paying tax until your cumulative income exceeds that.

http://www.hmrc.gov.uk/paye/employees/start-leave/tax-codes.htm

Grezz69

no he didnt want a P45 or ask for a P46 to be filled in. its a bit haphazzard

im paid on a montly basis however, i get paid on the last day of every year.

i emailed my manager about the tax and basically explained how im on the wrong tax code and paying too much tax and recieved this reply.

so how much tax should i be paying then due to this?

"And I’m not sure you’re paid to the end of the tax year. You’re paid in our fiscal year. This would mean that everyone who started on a different date to you would pay a differing amount of tax because they had a different amount of time left to the IR year end. It goes off ours so you pay the same rate as everyone else. I’ll double check that though – again"

trevormax

It's difficult to say what tax you should be paying as it would depend on what benefits or income you have received since 6th April 2009. You should have had something from the job cente when you finished claiming JSA (think it would be a P45IB or something along those lines). This should be given to your employer who would then use it to ensure you are on a cumulative tax code and paying the correct amount of tax.

It does look like you are on a week1 code which does not take into account any unused personal allowances from previous weeks.

Grezz69

and yes im told that does include national insurance. also ive been told until the company payroll system sets up i will not be getting a wage slip..is this not illegal?

Grezz69

i did ask the manager about bringing in my form from the dole office. and he said not to, he just wanted my bank account details.

trevormax

I'm a bit worried at that. I'm just wondering if your manager is paying your tax and NI. Did he even take your NI number?

Also, to be paying your tax and NI, he would surely need something from you be it the P45 or a completed P46 to allow HMRC to set up your tax record properly.

Grezz69

he took my NI number but thats it. my bank details and my address. no P45 or P46. he is telling me now that im paying the right ammount of tax and that its a flat rate we all should be paying the same. and i asked again about a pay slip and he said ill get one in about 4 months when we get a payroll system in. do you think i should contact somone about this?