Anyone out there savvy on tax codes??

shelleywa

Hi,

I need some help regarding tax, please - I'm getting very confused!

Basically, I want to start a modern apprenticeship. I have a budget and know the minimum amount I have to be bringing home each month to pay the rent and bills etc. (roughly £725 pcm)

So that I can start applying for modern apprenticeships, I need to know what gross anual income I would have to be earning in order to bring home enough net pay to pay my bills etc. But in order to get an accurate idea of what my gross minus net would be(I've been using this - http://www.freelanceuk.com/money/paye_calculator_results.shtml ), I need to know what my tax code would be, right? (please correct me if I am wrong - this thing is sending me round and round in circles!)

So how do I work that out??

Any help would be very much appreciated.

Thanks! :-)

sammyjammy

Try https://www.listentotaxman.co.uk

It works out your tax code on there for you.

Mudd14

If you have normal tax free allowance which you should if, a) you have no recieved benefits in kind from previous years, and b) your first/only job in this tax year, your tax code will be 647L

This means each month you can earn £539.92 before you pay tax at 20% (I wont go into higher tax brackets as you have specified you expect to be earning around 750 net)

NIC is around 9.8% so I would add 30% onto £750 to be sure, so £975 gross would leave you with about £750 net

DCFC79

You able to tell me what the tax code 328L M1 is for

Mudd14

erm you should have notification from the tax office as to why your code is that. Tax codes are made of all sorts personal to the individual so i would ring HMRC and ask if your unsure.

DCFC79

Mudd14 wrote: »

erm you should have notification from the tax office as to why your code is that. Tax codes are made of all sorts personal to the individual so i would ring HMRC and ask if your unsure.

i thought i was meant to have had a letter but ive had no notification of the change, its only been the last payslip that the code has changed

thanks mudd,

bigheadxx

This is an emergency tax code M1 meaning month 1, 328L the amount of the basic allowance left this tax year.

http://www.hmrc.gov.uk/incometax/emergency-code.htm

DCFC79

bigheadxx wrote: »

This is an emergency tax code M1 meaning month 1, 328L the amount of the basic allowance left this tax year.

http://www.hmrc.gov.uk/incometax/emergency-code.htm

ive just spoken to the nice tax people and its now sorted, the tax code apparently due to allowances form the employer