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lemon26

Apologies, I've not done enough research!

Thank you to those who took their time to answer my questions.

zygurat789

And your pension contributions were?

lemon26

Pension contributions were nil - I'm in the military pension scheme which is non-contributory and they don't say how much they put away for us so I don't knwo what impact that would have on tax.

TM1976

lemon26 wrote: »

Good morning, apologies if this is in the wrong board!

I've just been going over my payslips for last year or two and filing them away and I've noticed something on my March 09 payslip and corresponding P60 from 5 Apr 09.

On my paslip it says gross pay YTD £40734.84 and taxable pay YTD £38522.79 and my tax code is 603L - thought this meant that I got the first £6030ish tax free so shouldn't my taxable pay be £34704 or so? Also, it has NIable pay YTD as £38585.31 - would thsi be correct too? On the corresponding P60 that tax I've paid based on the £38522.79 figure is £6496.60 - is this correct?

Finally, in my Mar 10 payslip I have a gross pay YTD of £38434.45 and taxable pay YTD of £36683.82 on the tax code 674L - again, is this the correct amount of pay I should be taxed on? I'd have thought it should have been £ 30208 or so? Also, NIable pay YTD is shown as £36749.53.

Forgive me if I'm being thick but it doesn't appear to me that I'm getting my tax-free allowance actually tax free. Any thoughts on if I'm correct or otherwise? Thanks, L

The amount you have paid for 08/09 appears to be correct as per http://listentotaxman.com/index.php providing your tax code was correct. (ie the personal allowance is factored into the calculation).

I think the reason you have a higher gross pay than gross taxable is because you have some non taxable alowances paid to you as a part of your pay.

p00hsticks

lemon26 wrote: »

On my paslip it says gross pay YTD £40734.84 and taxable pay YTD £38522.79 and my tax code is 603L - thought this meant that I got the first £6030ish tax free so shouldn't my taxable pay be £34704 or so?

I think you're mis-understanding the term 'taxable pay' - my understanding is that it's the element of your pay that is potentially liable for tax. Your tax allowance will then be set against that sum when calculating the actual tax to be deducted.

Certain items - such as pension contributions if you made them - are eligible to be deducted out of your your gross salary before any tax calculation is carried out, which explains why there can be a difference between your gross pay and your taxable pay.

At it's simplest, with no such deductions, your gross pay and taxable pay would be the same, regardless of your tax code.

John_Pierpoint

Let us know, when you have worked it out, what part of your pay in "non taxable".

For example my son, who was a tax payer throughout, got some sort of non taxable bursary, when he was "a post graduate", and still studying.

lemon26

Thanks again! To the best of the information that I have available my basic pay is taxable, my specialist pay is taxable and my home-to-duty pay is taxable so, in short, everything I earn is taxable. I don't make any pension contributions and never have done.

Please correct me if I'm wrong but I thought that you paid no tax on your tax allowance (ie: no tax on first £6470 of earnings, then 20% and 40% tax thereafter) or am I just not getting it? I'm taxed on all the interest in my bank and savings accounts too.

When I go to the website mentioned above and put in my gross pay for 09/10 it comes up with taxable pay of £31959.45 which is about £4500 less that that shown on my end-of-year payslip and corresponding P60 - that's what made me wonder!

Thanks again, L

chrisbur

lemon26 wrote: »

Thanks again! To the best of the information that I have available my basic pay is taxable, my specialist pay is taxable and my home-to-duty pay is taxable so, in short, everything I earn is taxable. I don't make any pension contributions and never have done.

Please correct me if I'm wrong but I thought that you paid no tax on your tax allowance (ie: no tax on first £6470 of earnings, then 20% and 40% tax thereafter) or am I just not getting it? I'm taxed on all the interest in my bank and savings accounts too.

When I go to the website mentioned above and put in my gross pay for 09/10 it comes up with taxable pay of £31959.45 which is about £4500 less that that shown on my end-of-year payslip and corresponding P60 - that's what made me wonder!

Thanks again, L

The figure shown on listen to taxman as "total taxable" is not the same as the figure shown on your payslip as "taxable pay"
"Taxable pay" is the amount of your pay that is liable for tax, it means that you have some pay which is exempt from tax. Your pay office would be the best people to ask about this, they should be able to tell you what it is. From this "taxable pay" is then deducted your tax allowance and it is this figure that gives the "total taxable that listen to the taxman refers to. So to check your tax you need to enter your "taxable pay" figure into listen to taxman.
As far as NI is concerned to check this you would need to give all the monthly figures as NI is worked seperately for each month.

John_Pierpoint

It seems these payments to members of the forces are tax free:

Various allowances paid to members of HM forces, for example: operational allowance for members serving in combat zones, such as Afghanistan; mess allowance and travel to and from leave expenses; and council tax relief payments.

Source: "Which?"