Why is it so difficult.....

Flightman_2

To work out your tax? :mad:

I was lucky enough to get a gross pay increase of £1912 this year. Of that, I'm taking home £876. I'm a higher rate tax payer. So I'm getting approx 45% of my pay rise in my pocket, and HMG gets the rest.

Entering my monthly payslip figs into an on-line tax calculator, everyone I've tried gives a different figure HMRC tax calculator says I'm owed £1500?!? Other sites say I'm not paying enough NI.

So can someone please advise me if this is correct before I ruin my Sunday?

Basic pay. 4144.55
Basic Supn B 185.13
Income tax 751.06
NI 318.33

Net pay 2890.03

Thanks in advance.

System

Assuming you are paid monthly, tax is calculated based on your gross taxable income together with your tax allowances.

To help you check if you are paying the correct tax, you would need to provide more info:

Tax Code
Gross annual taxable pay
Pay Month that you are trying to check
Tax paid to-date (for this tax year 6APR2011 - 5APR2012)

chrisbur

Flightman wrote: »

To work out your tax? :mad:

I was lucky enough to get a gross pay increase of £1912 this year. Of that, I'm taking home £876. I'm a higher rate tax payer. So I'm getting approx 45% of my pay rise in my pocket, and HMG gets the rest.

Entering my monthly payslip figs into an on-line tax calculator, everyone I've tried gives a different figure HMRC tax calculator says I'm owed £1500?!? Other sites say I'm not paying enough NI.

So can someone please advise me if this is correct before I ruin my Sunday?

Basic pay. 4144.55
Basic Supn B 185.13
Income tax 751.06
NI 318.33

Net pay 2890.03

Thanks in advance.

Assuming that your tax coder is 747L or very close to that and your pension is contracted out and deducted under the net pay scheme then the figures you quote are spot on.
The thing to remember with tax calculators is that they are not usually designed to work out tax or NI for anyone in a company pension scheme that is contracted out.
Not sure where you get your figures for only getting 45% as you are paying 40% tax and 2% NI on your extra.

AirlieBird

Flightman wrote: »

So I'm getting approx 45% of my pay rise in my pocket, and HMG gets the rest.

No, HMG gets 42% of it. 4.5% of it goes into your pension. Where the other 8-9% has gone is anyone's guess. It's possible your pension contributions have increased - to get to the figures you quote your pension contributions would have been 4%. Or you could be comparing 2011/12 take home pay to 2010/11 take home pay which would be muddied by changes in tax allowances and NI.

Flightman_2

Sounds like the figures are correct then. Thanks everyone