I reckon iv'e paid too much Income Tax

osman_digna

Hi, i recently started a new job, and have been given the tax code,747L.
Upon receiving my first pay slip, i notice that i have been deducted Income Tax.
Surely my Employer is wrong to deduct Tax when the first £7,470 is the amount you are able to earn before you start paying it?
I have tried contacting the Inland Revenue several times on the phone today, but when you finally get through nobody bothers to answer your call.

System

Divide the £7475 by 12 because it is apportioned equally for each month's pay so that the allowance is spread across the tax year.

CLAPTON

you are allowed to earn 7475 before tax in the whole tax year

however, the allowance is allocated by a month by month basis so you take home salary stays the same each month

so in the first month they allow you 7475/12 (=623 ) before any tax which is charged at 20%
then the same for subsequent months