I think I'm paying too much on deductions

newschmoo22

Hi,

I am looking for a service/calculator to work out whether I am paying too much tax/student loan, NI etc. I work in a sales position with a set basic wage and qtrly bonus, on the month that I receive the bonus I pay £0.60 in every £1.00 earnt through deductions - is this right? I earn over £35k per year but under £150k.

Any advice greatly appreciated!

BoGoF

Post up details of your last payslip.

Gross pay to date, tax to date and tax code.

jimmo

http://www.moneysavingexpert.com/tax-calculator/

chrisbur

I do not know of any one calculator that will definately do all you want but the following should do what you want assuming that you pay NI at the A rate.
http://www.hmrc.gov.uk/calcs/paye.htm for tax

http://listentotaxman.com/ for NI at A rate and student loan

The listen to taxman may do all three but cannot be certain on the details given.

Also worth checking your tax basis, are you on a month 1 code.

CLAPTON

if you want you know your month by month deductions then most of the tax calculators don't really offer that facility: they work ok for your yearly totals.

knowing your income is between 35k and 150k is no use if you want to know month by month deductions as these depend upon the phasing of your income (and also 100k is a significant figure too

chrisbur

CLAPTON wrote: »

if you want you know your month by month deductions then most of the tax calculators don't really offer that facility: they work ok for your yearly totals.

knowing your income is between 35k and 150k is no use if you want to know month by month deductions as these depend upon the phasing of your income (and also 100k is a significant figure too

The HMRC tax calculator does work for month by month calculations, it is the only one that does as far as I know.

cgjackets

very good site

newschmoo22

Thank you all - will have a look at the sites provided and will post pay slip details for info.

newschmoo22

Hi All,

As promised I have copied the information from my most recent pay slip.

Tax Code 161L
NI Code A
Month 10
Gross Pay 41929.60
Taxable Gross 41929.60
Income Tax 10398.66
Employees NI 3028.94

Basic Pay 2526.61
Commission 1763.78
Income Tax 1079.06
Employees NI 367.57
Student Loan 273
Total Deductions 1719.63

As another example:
Basic Pay 2462.58
Commission 6994.13
Income Tax 3044.26
Employees NI 407.81
Student Loan 738
Total Deductions 4190.07


On a usual month I would expect to see 1800 of the 2500, but this month working on the premis that I would usually see 1800 it would appear I have further deductions amounting to a further 1000 of the 1700 commisson - and in the second example the amount is greater - just seems a bit steep? Also looking at the previous tax codes on my payslips over the last two years I have had four in total, 345L, 159L, 647L M1 and the current 161L.

newschmoo22

BoGoF wrote: »

Post up details of your last payslip.

Gross pay to date, tax to date and tax code.

Hi BoGoF,

As promised I have copied the information from my most recent pay slip.

Tax Code 161L
NI Code A
Month 10
Gross Pay 41929.60
Taxable Gross 41929.60
Income Tax 10398.66
Employees NI 3028.94

Basic Pay 2526.61
Commission 1763.78
Income Tax 1079.06
Employees NI 367.57
Student Loan 273
Total Deductions 1719.63

As another example:
Basic Pay 2462.58
Commission 6994.13
Income Tax 3044.26
Employees NI 407.81
Student Loan 738
Total Deductions 4190.07


On a usual month I would expect to see 1800 of the 2500, but this month working on the premis that I would usually see 1800 it would appear I have further deductions amounting to a further 1000 of the 1700 commisson - and in the second example the amount is greater - just seems a bit steep? Also looking at the previous tax codes on my payslips over the last two years I have had four in total, 345L, 159L, 647L M1 and the current 161L.

chrisbur

Have had a quick look at the figures and they look about right as far as they can be checked (NI total cannot be checked exactly as need every months figures for that) apart from the NI in the third detail 407.81 looks a bit low. None of these payments show 60 pence in the pound being taken as deductions and your idea that you would get 1800 out of a monthly salary of 2500 is a bit adrift. On your tax code of 161L you would get 1686 a month.

Your earnings are taking you into the 40% tax band so on earnings over about 3050 a month you pay 40% tax 12% NI and 9% student loan but this drops to 40% tax 2% NI and 9% student loan on earnings over about 3540.

I assume that you know why your code is 161L you should have a coding notice that explains this, I would assume some taxable benefit from your employer or an adjustment for underpaid tax in a previous year.