Do you know if my partner is paying too much Tax/NI

Dalkirst

Hi could anybody tell me if they know if she's paying too much tax/NI on her wages please?

She started a new job this summer.In her old job it was less hours but she seemed to get taxed alot less.She probably does about 4 or 5 more per week with the new job and the hourly rate is more.
Her tax code is 503L and NI code is A?

She has worked the new job for about 16 weeks now and earned in that time a taxable pay of £2830.65.She has had £229.51 tax taken off this and £149.66 NI.

Also we just got her last wage slip.She is paid every 2 weeks and they send weekly wage slips.On one as she had a weeks holiday it has been put on the previous weeks even though only one of the holiday days was on this week.Her pay before deductions on this week was £327.05 and she had £70.93 taken off for tax/NI.This seemd a bit steep to me but maybe i'm wrong.

I'm asking these questions because on her old job though of course the hourly rate was less(it was only just above the minimum wage) she got taxed alot less.

For instance i've got her P60 here for 05/06 and she earnt £7028.70 but was only deducted £217.58 in tax.

Sorry if that's confused anyone:o

Robert_Sterling

In 2005-06 your partner would have had nearly £5000 tax free and then nearly £2000 at 10% which would be £200. After that tax at 22%.
So her P60 is consistent.

Once she gets above £7000 per annum the tax is 22% and there is also NI to pay.

I would not be surprised if her tax is exactly right in 2006-07.

Bossyboots

Her deductions for this week are spot on.

It would be useful to know what the pay and deductions, together with her tax code on her P45 from her previous job was.

As Robert Sterling pointed out, once you go over the £7000 mark all income is taxed at 22% (until the next tax bracket) so a salary increase is not worth the same "in hand" value as the money already being earned. I notice this particularly with my overtime. I sometimes claim 50% as much overtime in a month as my actual contract hours but the extra I actually see in my pay packet seems miniscule compared to the amount I gete when I only do the contracted times. This is because the whole sum is taxed at 22% and then NI because I have used my allowances in my pay for my regular hours.

Dalkirst

Ok thanks both:)

Dalkirst

Just another quickie as i'm still not sure if she's paying too much still for the new job:)

Is it possible that she's on emergency tax with her new job as she never gave the new employer her P45?
She works part time doing home care but used to work in a care home and they didn't bother giving her the P45 when she left though she has now asked for it and they said they'll sort it out.But what i want to know is is it possible that the tax people think she only started work at the new job and are not aware that she worked somewhere else before that this tax year as they haven't got the P45 so are making her pay more tax?
When she gets the P45 from the old employer does she then give this to the new people or is it too late now...we are not sure how this works:)

For this tax year she worked at the old place up until 17th July(but for wage slips purposes this is end of July i am posting) and then from the new people 17th July to present.

The old place she earnt(in 16 weeks) £2523.20 and paid £99.45 in tax and £92.75 in NI
The new place she has earnt(in 18 weeks) £3190.55 and paid £255.87 in tax and £167.91 in NI.

I know i don't know anything about these things but there does seem to be a big difference between the two?!

Thanks

Bossyboots

I am trying to work this out for you, but one immediate answer to the low tax paid in the first job is that some of the weeks she worked there fell into the previous year's taxation and thus if she hadn't worked anywhere else in the tax year, she would have received her full tax allowance on that pay, resulting in there being a nil tax liability. She may well also have escaped NI for that period as well.

Dalkirst

Not quite sure what you mean but she has worked in the care home for several years so hasn't just started working or anything.
On another note when she worked there she used to get a letter from the IR saying she never paid enough NI(or was it tax i can't remember?) and they said she'd have to top it up to get the full state pension.Is this linked in anyway?
It used to be around £110-£120 and every November time though it did say she never had to pay it(though we did) it just meant she wouldn't get the full state pension and that she had so many years to pay it:)

ioscorpio

http://www.listentotaxman.com/

Dalkirst

Thanks for the link.I entered some of her weekly pay into them and they seem to be right.