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

Dekota

You have become a higher rate tax payer. You have to pay 50% of your income to the taxman.

chrisbur

Th1984 wrote: »

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.

Now that does sound strange.
Can you give full details, Gross tax NI tax code and advise if first payment for this tax year or last payment of last tax year? If last tax year what is total gross and tax for year?

sleepless_saver

You are probably earning about £49000. Even with the reduction in the 40% threshhold, it's not clear why your tax take has gone up so much. Something else must have changed or there is a mistake.

Put the figures into https://www.listentotaxman.com and see how they tie up with your pay slips. Let us know the results.

Th1984

@chrisbur

Took me a while to dig out payslip, here goes

Gross pay 6381.22
Bonus. 511
Childcare vouchers -20
Share plan -60
Pension -382.87

Taxable 6429.35


Tax paid 1740.76
EE NIC 366.30
Proff fees/dental 36.40

Net 4285.89

Month 01
Tax code 816L

Have always thought NI was lower than it should be but these figures have been consistent over the last 5 years.

chrisbur

Th1984 wrote: »

@chrisbur

Took me a while to dig out payslip, here goes

Gross pay 6381.22
Bonus. 511
Childcare vouchers -20
Share plan -60
Pension -382.87

Taxable 6429.35


Tax paid 1740.76
EE NIC 366.30
Proff fees/dental 36.40

Net 4285.89

Month 01
Tax code 816L

Have always thought NI was lower than it should be but these figures have been consistent over the last 5 years.

Looks to me as if you are in a contracted out pension scheme, and pay NI at the D rate so will be paying at a lower rate than the OP who as far as I can tell from the limited figures given so far is paying at the A rate (not-contracted out) Your NI rate letter usually shows on your payslip near the NI amount.
Essentially you pay into a pension at work which takes over from the state second pension so you pay a lower NI rate.

Th1984

Thanks for that nugget, have always wondered why I lt I was getting a great deal and consistently underestimated my pay packet, sorry to op for hijacking the than but I have learnt something new today!

scootw1

Dekota wrote: »

You have become a higher rate tax payer. You have to pay 50% of your income to the taxman.

Rubbish. It would be higher rate of income ABOVE the threshold,

scootw1

Th1984 wrote: »

@chrisbur

Took me a while to dig out payslip, here goes

Gross pay 6381.22
Bonus. 511
Childcare vouchers -20
Share plan -60
Pension -382.87

Taxable 6429.35


Tax paid 1740.76
EE NIC 366.30
Proff fees/dental 36.40

Net 4285.89

Month 01
Tax code 816L

Have always thought NI was lower than it should be but these figures have been consistent over the last 5 years.

Do you work for public sector? If you do, pensions contributions went up by 1% this April

Th1984

Private sector, funded db pension scheme.

chrisbur

nogginhead wrote: »

Put simply, you are now helping to repay the debt that this country has.

All of this has been discussed over the past 18 months by Osbourne

Everybody is now having to pay more into the system than they have in the past including welfare recipients, young families and the pensioners.

And you think that this is the end? - This is only the beginning!
From this week they are looking for another £10m to be shaved off welfare benefits, more contributions from the employee for pension provision as well as a further reduction in state funded support for those who are working.

Welcome to the real world!

You may well be correct that many (not all I think) are now helping to repay the country's debt; but I believe that you are wrong to say that is the reason behind this apparent increase in tax on the OP's earning.

You are making the same assumption that the OP made in their original question, why have I paid more tax in April than in March?
But there is another way to look at it, why have I paid less tax in March than in April?

The OP has not yet given the full information that has been asked of them so that a definate answer can be given; but they have given some details from which a likely answer can be found.
They advise that their tax and NI for these months were
March Deductions:
- Tax = 788.60
- Nat Ins = 373.09

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

If we take the April figures and assume that the NI rate is the A band then we get a gross of about £4558 for these tax and NI figures, put the figures into listen to taxman to check them.
Then put the same figure in for last tax year 11/12 and you get an NI figure that is the same as the OP's for 11/12 within a few pence but a tax figure of £990.70. This suggests that the OP should be about £14 better off this year on the same gross, but the OP quotes £788.60 as their tax figure.
So we are looking for an explanation not why is the tax so high for this year but why was it so law for last year.
There are two possible explanations that I can think of.
One there was some error in the OP's pay for the month before which is being corrected.
Two and I believe the most likely, the OP's pay for March was lower than their average pay. They are a 40% tax payer so if they had higher earnings earlier in the year say a bonus then their earnings fell to a lower level some tax that they originally paid at 40% would then only be due at 20% so any payment they recieved that was less than their average would have some of this tax reduction from 40% to 20% included in it and produce a tax figure that was lower than normal, and would explain the lower than expected tax figure for March.

If the OP would care to give the full details asked for ie. total taxable gross and tax paid for last year along with taxable gross and tax paid for February March and April we can check for certain what has happened, but untill then I am 99% sure that the above is the explaination.