Calculating Tax

ab7167

Someone has just mentioned to me that the rate of income tax went down in the budget? Is this correct? If so, how do I work out how much I'm going to be paid this month, as I assume it will go up (but should never make assumptions!) In addition, I was repaying money to HMRC via my tax code, so this has changed as well.

My basic salary is £30,700 pa, with 3% deduction for pension contributions. Tax code last year was 363L, now is 522L.

My last months payslip gave me net take home of 1788.64, but I'm totally confused as to how to work out what it will be this month! I guess the obvious answer is to wait until my payslip arrives, but I'm slightly on the control freak side and want to do next months budget sooner rather than later...

Any help (including maybe an explanation of how it is worked out - I am mathematically literate) would be very gratefully received, as I feel this really is something I should know..

Cheers,

Ali

WHA

Your personal allowance has increased slightly - as happens every year. Nothing else much has changed yet. Basic rate tax band is planned to reduce next year, not this year. Your April pay will be slightly more, but only by a few pounds.

tigtag02

Has the change come from the tax office? Why were you on the lower tax code last year?

A jump from 363L to 522L will be a little more than a few pounds but it wont be that substantial!

tigtag

jem16

ab7167 wrote: »

Someone has just mentioned to me that the rate of income tax went down in the budget? Is this correct? If so, how do I work out how much I'm going to be paid this month, as I assume it will go up (but should never make assumptions!) In addition, I was repaying money to HMRC via my tax code, so this has changed as well.

My basic salary is £30,700 pa, with 3% deduction for pension contributions. Tax code last year was 363L, now is 522L.

My last months payslip gave me net take home of 1788.64, but I'm totally confused as to how to work out what it will be this month! I guess the obvious answer is to wait until my payslip arrives, but I'm slightly on the control freak side and want to do next months budget sooner rather than later...

Any help (including maybe an explanation of how it is worked out - I am mathematically literate) would be very gratefully received, as I feel this really is something I should know..

Cheers,

Ali

Use this site and enter you gross income minus 3% for your pension.
http://www.listentotaxman.com/

computerbar

WHA is right
what you heard about the rate changing is from NEXT YEAR. The 10% band is going to finish and the basic rate will be decreased from 22% to 20%.

this year rates and allowances can be viewed on HMRC website.
http://www.hmrc.gov.uk/rates/it.htm

And your pay will increase about £35 per month based on your new code 522L.

ab7167

The tax code change was due to a benefit in kind I received but didn't pay tax on in the correct tax year, so they took the money owed over a later tax year by reducing my code for 1 year only. It is definitely correct, I've checked several times :-) I think I only owed them about £400, but I didn't have the lump sum at the time they asked for it so they took it PAYE instead.

Thanks for the help, should listen to the budget properly really!

Ali

tigtag02

ab7167 wrote: »

Thanks for the help, should listen to the budget properly really!

Ali

Not always that easy when all you can do is daydream about throttling GB