Paying correct tax?

musashi10

Hi there.

I'm afraid that tax and NI issues really confuse me and I am not sure if I am being paid correctly. I was wondering if anyone with payments knowledge could possible help.

My contract is for 6 months pro rato £25,000.

How much should I recieve do you think after deductions (inc the tax free allowance)?
What is the correct tax code?
How much NI should I be paying?

for starters my total recieved for a month was £1900 and I'm sure that £25,000 divided by 6 is more than that? And after deductions I only got £1375 which seems quite low.

any help would be greatly appreciated.

Many thanks

TM1976

£25,000 is the annual salary, pro rata means that you are getting 6 months of that, so for 6 months work you should get £12,500, divided by 6 that is £2,083 a month.

If you are getting £1,900 per month the annual value of the contract is £22,800 not £25,000.

On http://listentotaxman.com/index.php this comes out at £1,471.35 per month so it's possible there is something slightly wrong with the taxed amount. What is the tax code on your payslip?

musashi10

Thanks

says tax code BR C

Breakdown as follows

Total pay £1923.08
Income tax £384.6
NI £163.14

TM1976

You aren't getting your personal allowance. You can earn £6,475 in a year before you pay tax. If this is your only jobyou need your employer to fill out a P46 and get your tax code amended.

musashi10

Thanks a lot.

What is the correct tax code do you think?
How would I get the money back?
And am I still correct in thinking that the total pay figure is still incorrect?

Thanks for all your help

musashi10

hmmm when I used that website link, not sure if I was doing something wrong but it came out as £1,597.85/month?

CLAPTON

the tax code ought to be 647L

you need to talk to your employer and fill in a P46
once your tax code is correct then you will automatically receive any back tax (assuming your contract started after april 2010)

musashi10

Thanks.


My contract started on march 15th 2010, does this make a difference?

TM1976

musashi10 wrote: »

hmmm when I used that website link, not sure if I was doing something wrong but it came out as £1,597.85/month?

I entered £1,900 per month, it you entered £25,000 pa that's probably where the difference is.

TM1976

musashi10 wrote: »

Thanks.


My contract started on march 15th 2010, does this make a difference?

If you were paid in the last tax year (5 April 2010 or before) you may have to claim some overpaid tax for that year.

musashi10

Yes I was employed previously from Apr to Nov the last tax year.

How do I go about claiming any tax back? And how would I know how much to claim?

And what is the correct figure to calculate the tax on? £25,000/annum or £1,900/month?

And thanks for your help, i'm useless at these things.