Need some help with my wageslip this month >>

*Kat*

So...

I sold my shares (taxable, which is fine). Tax Code 747L. NIC : A

My usual wage is ~£500 per month, my taxable pay so far is £7254 (including this months wage).

I got paid this month £2178 (£1500 of this was share savings).

I got taxed : £304.80, NIC : £185, Student Loan : £124 (!!!!!!? I thought you didn't pay student loan until you earn £15k per year???!)

Anyway, does this seem right to you? I mean, I was expecting to pay tax over £7470 so my next wages until April I would pay 20% and the NIC. But it just seems a little high for what I got. I pretty much worked this entire month for nothing as my net pay was £1400, £100 less than what my shares were sold for.

Ugh.

MrsManda

For Student loans you pay 9% of everything you earn over £15,000 a year but if you're paid monthly this is spread over 12 months so you pay 9% of everything over £1250 to stop you getting a large bill at the end of the year.
If at the end of the financial year you've earned less than £15000 over the course of the year you can apply for a refund.
(I'd link to the repayment website but it's down at the moment)

*Kat*

This is such a mess I just want to cry!

MrsManda

It may not help you now but if you don't earn £15,000 over the year you'll be able to reclaim the student loan repayment and depending what you earn for the rest of the year you may also get an income tax rebate.

Student loan repayments and income tax payments are based on an annual figure but divided across the number of pay periods you have. So for income tax with a 747L tax code you can earn £7475 over the year without paying income tax but this is split across 12 months for you so each month you can earn ~£622 without paying tax with everything over it being taxed at 20%.

This may seem unfair when you get paid an unusual amount one month but it's to prevent you ending up with a large tax bill at the end of the year or having your last few pay dates being taxed at very high rates.
Your income tax liability will be recalculated after the end of the financial year and if you've overpaid any tax you'll receive a cheque.

zagfles

Income tax will sort itself out as the tax code is cumulative (ie doesn't have M1 at the end). If you earn less than £622 per month in the last 3 months of the year you'll get a tax refund in your pay.

*Kat*

Yeah, I guess it's just frustrating that they took such a large amount in one go, I was just expecting them to average it out over the next 3mths based on the final wages