anyone help?

WaxiesDargle

Hi all.....(update to this thread at bottom)

At the moment I have a final salary pension of £21,319 and a salary from another job of £27,625.

I pay BR tax rate and NI on my £27,625 salary and 499L and no NI on my £21,319 pension

my total take home income after tax and NI is £3,138

However next month my pension rises to £24,483 when aged 55 due to RPI/CPI

I also get a salary increment at the same time which increases it to £28,470

could anyone please calculated how much my take home pay will be after tax? Maths was never my strong point

Thank you

Waxies

jem16

£1685.58 on salary and £1715.52 on pension. Total £3401.10.

You can easily work it out yourself using this site.

http://listentotaxman.com/index.php

WaxiesDargle

thanks a lot for your reply jem...it is really appreciated

WaxiesDargle

having phoned the tax office to let them know my pay increases i have eceived a PAYE coding notice

personal allowance.........................£7475
adjustment to tax band rate.........-£8692
tax is due on ...............................-£1217

they said that my tax code has been changed from 499L to K120

Tax is due in £1217

and between 6 April 2011 and the date my pension authority used the old tax code for the last time I have had the benefit of too much tax free amount and they have worked it out to be £564.67 but will check it at the end of the year and let me know..

Once my pension authority use my new code i will get a proportion of the new tax free amount


Could someone tell me how the figure -£8692 and the £564.67 is worked out...I got one pay rise last month and the other one I dont get til 20 September

thanks

jem16

WaxiesDargle wrote: »

Once my pension authority use my new code i will get a proportion of the new tax free amount

With a K code you are not getting any tax-free allowances.

Could someone tell me how the figure -£8692 and the £564.67 is worked out...I got one pay rise last month and the other one I dont get til 20 September

thanks

The -£8692 figures bothers me the most. This would signify that they think you have £8692 of income that is not being taxed through PAYE. You normally see this kind of deduction on a state benefit.

Do you have any state benefit that is being paid gross - i.e. like a state pension?

WaxiesDargle

Jem

no...i have two sources of income....my salary from my full time job and my pension from a previous employment (final salary)

I am soon to be 55 so no state pension

jem16

WaxiesDargle wrote: »

Jem

no...i have two sources of income....my salary from my full time job and my pension from a previous employment (final salary)

Tax code for your salary is BR - is that correct?

Tax code for the pension was 499L - correct? What is it that reduced the pension tax code from 747L to 499L?

What does the P2 coding notice say about the £8692 figure? The other possible reason for it is that your 2 incomes take you into the higher rate tax band possibly by around that figure. Can you give me the amount of each income?

WaxiesDargle

jem

it was reduced to 499 to take the additional tax when I went into the 40% bracket. My salary is BR (see my first post on this thread for my income)

thanks

WaxiesDargle

the coding letter just says

adjustment to tax band rates....-£8692

jem16

WaxiesDargle wrote: »

jem

it was reduced to 499 to take the additional tax when I went into the 40% bracket. My salary is BR (see my first post on this thread for my income)

thanks

OK - same thing is happening now. Your two incomes come to £52,953. Take off the £42,475 which is the start of higher rate tax and it comes to £10,478. However that is not for the whole year so £8692 is probably correct.

So basically your tax code is being reduced to take the extra tax due at 40% that would not happen otherwise.

WaxiesDargle

thanks very much jem thats cleared it up for me with ref to the £8692

although I'm still not sure what the £564 figure is