Tax and National Insurance Claim back?

dasachmo

Hi guys,
I just started working and recieved my first pay packet... now theres 3 of my friends who have the same pay level as me and we were all discussing our payslips...

It appears that our tax is going up and up... the first pay had no tax and its been rising since. ( my tax code is 461L)
The thing that concerned me the most was i was paying a lot higher NI then the rest of my friends.. they were paying 170 and i was paying 205!.... can anyone enlighten me?

CLAPTON

how much was your gross pay?
was it weekly, monthly or what?
what period was it for ? ( i.e. monthly October/November) or week xx

can you check your tax code 461L is very non standard

prior to this job was did you do?
JSA, work, student etc ... was there any income?

michael1983l

Just call the tax office and ask for a review. They will tell you why your on a reduced tax code and return any monies owed to you if any via your next payslip.

dasachmo

welll, everyone i know on my grade is on that tax code so that seems normal. I was a student before i started working and i havent earnt anything as a student.
Im just suprised at how unusually high my NI is - its £49 more then all of my co workers! does it make a difference where you work? or how many prescriptions you've had previously?

fengirl_2

NIC is worked out on a monthly basis and would be the same for everyone on the same level of pay, unless someone was contracted out and therefore paid reduced contributions. Its nothing to do with prescriptions.
Code 461L is not a standard code. Have you not had a notice of coding from HMRC showing how this is made up? If not, you need to ring your tax office and ask them how this code is arrived at. Once you have this answer, we may be able to advise.
I think the reason your tax is going up is becasue you have not worked so far this year and so had some tax free allowances to use against your first month or so's pay. This has now caught up so the correct tax will be being deducted - however, you still need to check your code.

chrisbur

dasachmo wrote: »

welll, everyone i know on my grade is on that tax code so that seems normal. I was a student before i started working and i havent earnt anything as a student.
Im just suprised at how unusually high my NI is - its £49 more then all of my co workers! does it make a difference where you work? or how many prescriptions you've had previously?

As CLAPTON said more details definitely needed.

To have a code of 461L it would have to be issued by the tax office, and if this was the case from what you have said unless you are on a very high salary you would not be paying tax on your first payment.
Strangely 461L was the emergency code for 03/04.
Cannot comment on your NI figures as you have not given details of your earnings.

trevormax

the NI is based on your income and has nothing to do with your tax code. If you paid more NI than your colleagues then normally it is because you have earned more than them. The weekly threshold for NI is £110 or £476 each month. Anything earned above this amount is then taxed at 11% up to the higher threshold which is something like £880 pers week. If your circumstances and pay are exactly the same as your colleagues yet you have still paid more NI then it is likely your employer has messed up somewhere and you have paid too much or your colleagues have paid too little.

If, as you say you are all on the same reduced tax code then it will be for one or both of the following reasons:

1. Your employer has put you all on to the wrong tax code because as chrisbur said it is the 2003/04 tax code.
2. Your employer is providing you all with some kind of benefit in kind such as medical insurance. Whatever it is it is expensive as it is reducing your tax code by £1,860.

mcguireuk

althought you have said that the code has been reduced by £1860 this will have a smaller effect on the tax paid as on 20% of this will be deducted. so it will only effect you by £1860 8 0.20 = £372 per year.

dasachmo

OH, okay... well, my NI is 203.50 and everyone else is 178 which is a big difference in my pay!

we're all getting taxed the same but it appears that everyones tax code is 461L and thats supposed to be right.
can i appeal or claim back my NI?

chrisbur

dasachmo wrote: »

OH, okay... well, my NI is 203.50 and everyone else is 178 which is a big difference in my pay!

we're all getting taxed the same but it appears that everyones tax code is 461L and thats supposed to be right.
can i appeal or claim back my NI?

What gross is this paid on, and are you paid monthly?
In your first post you said that you had "....just started working and received my first pay packet" but then you said "....our tax is going up and up", suggesting that you have had more than one pay packet, can you clarify?

trevormax

Are you sure you and your colleagues are getting the same gross wages? If so then it sounds like your employer must have messed up somewhere along the lines. You might be able to tell who is paying the wrong amount of NI by checking the following two points:

1. Assuming you are being paid monthly, you earn the same as your friends and your employer has deducted the correct amount of NI from you then I calculate your gross wages to be about £2,321 based on NI of £203 paid.

2. Assuming you are being paid monthly, you earn the same as your friends and your employer has deducted the correct amount of NI from your friends, then I calculate your gross wages to be about £2.094 based on NI of £178 paid.

So if your gross monthly wages are £2,321 then your NI is correct and your friends are wrong. If your gross monthly wages are £2,094 then your NI is wrong and your friends is correct.

There is a webpage on the HMRC website for claiming back overpaid NI here http://www.hmrc.gov.uk/incometax/claim-ni-conts.htm

Regarding your tax code, do you receive any kind of benefit in kind from your employer. These can include things such as a company car, a low interest/interest free loan, low rent/free rent accomodation for non qualifying jobs, free medical insurance etc.

If you do not get any benefit in kind from your employer then I would suggest you contact HMRC to discuss your tax code and get a copy sent to you and your employer. You can also speak to your employer to find out why they have you on the wrong tax code. At the same time, you can ask them why you have overpaid NI (if that is the case).