Understanding Tax Codes and Working tax credits

HelterskelteringPenguin

Hi, I have just been reading something about Tax codes but don't quite understand how they work.
Basically mine suggests i can earn £8460 a year tax free, but i am working a part time job at a supermarket 2 days a week total gross earnings around £8000 per year, yet my pay slip still says i am paying normal tax!! would i get a tax rebate at the end of tax year?? or is the 'working tax credits' that i receive, there to compensate for tax i'm paying from wages?? all confusing.

these figures are rough as i dont have a wage slip in hand but roughly i get

£135 wage per week
£33 tax and NI deducted
= £102 payed into bank

Working Tax Credits around £69 per week

got 5 kids so also get around £220 per week CTC + CB on top

so would i get a tax rebate or is the WTC in replacement as i am earning under the tax code limit

I am sorry if i have not wrote this more detailed, just wondering how the taxcodes work thats all.

System

WTC is a benefit and although how much you receive is based on your household income it does not affect the tax code applied to your employment.

Regarding how much you receive after deductions are taken from your wages it looks to me as though your employer may have you on a BR (basic rate 20%) tax code which is incorrect if your job is your only source of PAYE income.

HelterskelteringPenguin

Pam17 wrote: »

WTC is a benefit and although how much you receive is based on your household income it does not affect the tax code applied to your employment.

Regarding how much you receive after deductions are taken from your wages it looks to me as though your employer may have you on a BR (basic rate 20%) tax code which is incorrect if your job is your only source of PAYE income.

yes it is my only job, how would i get the employer to alter this and would i be able to apply for tax refund or would i get a refund automatically??

System

You would be better contacting the tax office to ensure they actually know you have that job and so that they can ensure your employer is given the correct tax code to operate.

It is too late to do anything about correcting the tax code for 10/11 but at the end of the tax year you can ask HMRC for any refund due to you.

HelterskelteringPenguin

Thank you, i will give that a go.