Tax Rate change - tax has risen

ew2712

Hi
I'm wondering if anyone can shed any light on why my Income tax has just dramatically gone up by 50%. :eek:

I was a contractor in my own ltd company until November 2010, when I got a permie job at BT in London.

I was put on the 647L tax code (same as when I was a contractor). This month the change has gone through to the 747L tax code, but the amount I'm paying has just gone up by £500.

I'm wondering if it has anything to do with how much salary I paid myself as a contractor, compared to how much I'm getting as a salary now.

Many thanks
Liz

CLAPTON

not many facts here
maybe give some details

pipscot

ew2712 wrote: »

Hi
I'm wondering if anyone can shed any light on why my Income tax has just dramatically gone up by 50%. :eek:

I was a contractor in my own ltd company until November 2010, when I got a permie job at BT in London.

I was put on the 647L tax code (same as when I was a contractor). This month the change has gone through to the 747L tax code, but the amount I'm paying has just gone up by £500.

I'm wondering if it has anything to do with how much salary I paid myself as a contractor, compared to how much I'm getting as a salary now.

Many thanks
Liz

If you put your salary details for April into an online PAYE tax calculator, it should tell you if you paid the correct amount of tax/NI this month.

No idea why you paid £500 less last month without further details of income levels, your contractor income etc.

ew2712

Thank you so much for the replies.

I've just used an online PAYE calculator and having just read my P60 I think I now understand, although had clearly not factored it into my take home pay.

I only paid myself basic salary whilst a contractor, so even though my salary hasn't changed since being with BT, I paid less tax based on a 20% threshold as opposed to 40% now..

Many thanks

Liz