Tax calculator- how is it so wrong?

mitten_2

I was looking on the tax calculator which someone had put on the cutting tax forum and I just don't understand how the tax office have got my tax so wrong, or am i just being really stupid and missing something here?

On £6913.15 gross pay and tax code 503L i paid £837.46 but the calculator said my tax would have been £188.30. Same with NIC, i paid £512 and the calculator said £205.

Am i being really stupid or is my tax really rather wrong?

kelloggs36

You should be paying only 10% tax on your residual earnings over 5035 per annum. You don't hit the 22% bracket on those earnings, so the calculator is right. I would ring your tax office - do you have any perks which are taxable? It could be that you have things which are given a value, and then you are taxed accordingly. Alternatively, it could be that you are paying for an underpayment for the past? Ring them urgently and check. It could be that you are due a nice refund!!

mitten_2

kelloggs36 wrote: »

You should be paying only 10% tax on your residual earnings over 5035 per annum. You don't hit the 22% bracket on those earnings, so the calculator is right. I would ring your tax office - do you have any perks which are taxable? It could be that you have things which are given a value, and then you are taxed accordingly. Alternatively, it could be that you are paying for an underpayment for the past? Ring them urgently and check. It could be that you are due a nice refund!!

I certainly hope i am due some tax back it would be nice. I don't think there's anything else i have been given which is taxable. Can NI be claimed back if it has been over paid?

Would you suggest calling the tax office now or waiting until my p60 comes and sending a copy of that with a letter asking for repayment.

xxx

CLAPTON

As i said on your previous thread i think you ought to write to HMRC giving full details of both your employments and ask them to check the tax and NI. I would wait until the end of the tax year as its so close now.


does your payslip have something like... Gross to date, tax to Date or equivalent? is so what are the numbers and also does it have a week/month /period number on it?

mitten_2

CLAPTON wrote: »

As i said on your previous thread i think you ought to write to HMRC giving full details of both your employments and ask them to check the tax and NI. I would wait until the end of the tax year as its so close now.


does your payslip have something like... Gross to date, tax to Date or equivalent? is so what are the numbers and also does it have a week/month /period number on it?

In the last tax year i have only had one job for eleven of the months and it's only in the last month that i have taken my second job.

On my payslip It says:
Gross pay 6913.15
Taxable Pay: 6913.15
Tax: 837.46
N.I 512.43
Employer's N.I 629.54
Pension 0.00

(do you know that employer's N.I is? it this the amount of NI my employer pays on my behalf?)

milkydrink

Are you saying you currently have 2 jobs??

mitten_2

kimevans wrote: »

Are you saying you currently have 2 jobs??

Yeah, kind of. My first job is for a healthcare agency and i work that only in the uni holidays sometimes up to 5 days a week, sometimes 0 days a week- whatever i can get. My second job (which i only started a couple of weeks ago) is a 15 hour a week job for during term time. I only have two jobs because they're both low earners.

milkydrink

Right, well your tax allowance is being used up by your main job.

You don't get tax allowance on both jobs ONLY on your total income.

So if you earn £6,000 at one job, you will only pay a tiny bit of tax & NI on it. But if you earn another £2,000 at a second job, you will pat tax & NI on it all, as if you had earned £8,000 in one job.

mitten_2

i am more interested in why i have paid so much tax in my first job (the one i stated the figures from) as this is the one with my 403L tax allowance so i *think* the tax i have paid is a lot according to the tax calculator.

milkydrink

Yes I see.

Is 403L a typo, did you mean to put 503L?

When you say 11 months I assume that nowhere on your payslip says BASIC RATE or BR (this is like the old emergency tax, this would cause you to pay too much). It is common to pay to much tax when you first start a job, till your details catch up, but not 11 months, you would see this anyway with BASIC RATE or BR being there.

You can write to them on the 5th April anyway & it wont take long to get back.

mitten_2

kimevans wrote: »

Yes I see.

Is 403L a typo, did you mean to put 503L?

When you say 11 months I assume that nowhere on your payslip says BASIC RATE or BR (this is like the old emergency tax, this would cause you to pay too much). It is common to pay to much tax when you first start a job, till your details catch up, but not 11 months, you would see this anyway with BASIC RATE or BR being there.

You can write to them on the 5th April anyway & it wont take long to get back.

yeah, sorry i meant 503L.

I was thinking that since in the months that i worked for this company the tax people calculated from my first few months earnings that if i carried on earning at the same rate then i would have been over my allowance and so othey started to tax my wages. But with it being acency work and since it's not been 4 months since i worked then i haven't earned as much as the tax people predicted i would. I'm not sure if that makes sense,