new tax code means I'm £180 a month worse off

mathewckent

Hi

Can some body help me understand how my new tax code from April 2012 onwards means that I'm now £180 a month worse off than what I was in March 2012?

Up until March my tax code was 747L but from 1 April it is now 820L. I've just received my payslip for the month of April and I'm £180 worse off now.

My interpretation of the new tax code was that my personal allowance has increased which means that I can earn a higher amount of money before I start paying tax.

I'm really shocked and confused. Can someone enlighten me?

Many thanks!

Icequeen99

mathewckent wrote: »

Hi

Can some body help me understand how my new tax code from April 2012 onwards means that I'm now £180 a month worse off than what I was in March 2012?

Up until March my tax code was 747L but from 1 April it is now 820L. I've just received my payslip for the month of April and I'm £180 worse off now.

My interpretation of the new tax code was that my personal allowance has increased which means that I can earn a higher amount of money before I start paying tax.

I'm really shocked and confused. Can someone enlighten me?

Many thanks!

The tax code change does mean you can earn more before you pay tax. So there must be something else on the payslip. Can you post the all of the figures from your March one and your new one?

IQ

mathewckent

Thanks IQ.

March Deductions:
- Tax = 788.60
- Nat Ins = 373.09

April Deductions:
- Tax = 979.96
- Nat Ins = 369.25

Stephen_Leak

mathewckent wrote: »

Thanks IQ.

March Deductions:
- Tax = 788.60
- Nat Ins = 373.09

April Deductions:
- Tax = 979.96
- Nat Ins = 369.25

Which part of the word "all" do you not understand?

fabforty

How much do you earn p.a.? Perhaps you have moved into a new tax bracket.

Blackpool_Saver

must have earned more or a new deduction, can understand people not wanting to disclose income though...

shop-to-drop

How much did you earn last year? Did you work the whole of last tax year or did you start working after April 2011?

Icequeen99

Those figures by themselves are not helpful.

You need to post all of the figures on the pay notices if you want someone to help you.

IQ

chrisbur

mathewckent wrote: »

Thanks IQ.

March Deductions:
- Tax = 788.60
- Nat Ins = 373.09

April Deductions:
- Tax = 979.96
- Nat Ins = 369.25

Your April figures are consistent with a taxable gross of about £4557 and the NI for March is consistent with a gross figure similar to that. If these figures are about correct this suggests to me that your average earnings for last year were somewhat higher than your earnings in March so you were getting some 40% tax converted to 20% tax so lowering the actual tax due for that month.
If you can give the exact figures that I asked for in your other post a better check can be made.

Th1984

The national insurance sounds very high,

I have paid 600 more in income tax this month than your example and have paid less n.i.

shop-to-drop

Have your pension payments changed at all?