Calculating tax under PAYE

CLAPTON

village_life wrote: »

I presume she ticked box B (though I made my comment for the purposes of a clear cut explanation :-)).... She has been doing a PHD course which is paid tax free, and with that shes done some additional demonstrating which is taxable income, but has only earnt a couple of hundred pounds so far for that this year..... therefore I just wanted to take it out of the equation while I get my head around the basics of how tax is calculated

if she ticked box B and she didn't supply a p45 then they would probably have put her on a non cumulative tax code (emergency code)

you really need to see her payslip showing the tax code and other details before any more progress can be made.

Chinkle

village_life wrote: »

Hi

assuming she has not worked since April this year (99% accurate), /QUOTE]

Surely she's worked or she's not - how can you be 99% accurate about such a thing.

Spirit_2

there is a website called www.listentotaxman

Google it it is very good and simple to use to work out net pay

CLAPTON

Spirit wrote: »

there is a website called www.listentotaxman

Google it it is very good and simple to use to work out net pay

have you used it to work out salary for situations where the person has only worked for part of the year?

how did you do that?

daymobrown

Sorry for the hijack.

I'm a new member who joined specifically to get a similar question answered :-

I was unemployed from April 2009 untill the 20th of June 2010.

On the 21st I started my new Job, paying 18K.

On the 24th I gave my employer my P45 from the Job Centre.

On the 29th of July I was paid for 6 weeks, the below.
Tax Code 647L
Total Gross £2045.00
Tax £118.80
NI 172.81

Question 1, Is this right?

Today I received my pay slip for my pay on the 26th.
Tax Code 647L
Total Gross £1500.00
Tax 192.00
NI 112.53

Question 2, Is this right?

Any help will be greatly appreciated.
Thanks, Damian.

CLAPTON

tax is cumulative so it's necessary to know the figures from your P45 or the total to date figures from your payslip

daymobrown

Thanks for the swift reply!

Pay Slip 1

Total Gross Pay TD 2754.25
Gross for Tax TD 2754.25
Tax paid TD 118.80
Earnings For NI TD 2045.00
National Insurance TD 172.81
Employer NI TD 201.09

Pay Slip 2

Total Gross Pay TD 4254.25
Gross for Tax TD 4254.25
Tax paid TD 310.80
Earnings For NI TD 3542.00
National Insurance TD 285.34
Employer NI TD 332.03

CLAPTON

basically it is correct

for 1st slip

total pay/income is 2754 for period april to july i.e. 4 tax months (includes pay and JSA which is taxable)
tax free allowance is 6475 x 4/12 = 2160
so you pay 20% tax on 594 i.e. £118.8

NI is based on your earning only of 2045
allowance is 476 so you pay 11% on 1569 i.e. £172


similarly for the second payslip

daymobrown

Good, thanks alot.