Work out tax half way through financial year

I_Love_Shoes

I have recently changed jobs and in my first month since they received my p45, the tax is crazy!
I am looking for some kind of tax calculator that works out the tax for part way through the year.
If not, can somebody on here help me with how much I should be getting taxed please.
Thanks

CLAPTON

give us the P45 figures

and give us your payslip figures including the tax codes

chrisbur

As CLAPTON says best way to check is to show the figures for P45 and payslip, but a fairly common problem on changing jobs is an overlap of the tax allowance. Check the month number on your P45 and the month number on your first payslip at the new job, if they are the same or the month number in your new job is lower than that on the P45 you have been given some tax allowance twice (once in your old job and once in the new job) This results in an underdeduction of tax which is corrected when the P45 is applied.

I_Love_Shoes

According to the P45 my total pay to date is £9371.20, tax to date £793. Month number 8.
810L tax code.
Earned £1111.46 first month in new job (November 12) before tax, £87 tax, £57.12 NI, total take home Nov 12 £967.34. Tax month 8.
Earned £1566.67 second month (Dec 12) before tax, £287.20 tax, £96 NI, total take home £1052.71. Tax month 9.
Half of this tax stuff is jibberish to me, but nearly 50% of decembers pay has gone! nearly £300 tax in one month seems too much.
Can somebody help please!

CLAPTON

I_Love_Shoes wrote: »

According to the P45 my total pay to date is £9371.20, tax to date £793. Month number 8.
810L tax code.
Earned £1111.46 first month in new job (November 12) before tax, £87 tax, £57.12 NI, total take home Nov 12 £967.34. Tax month 8.
Earned £1566.67 second month (Dec 12) before tax, £287.20 tax, £96 NI, total take home £1052.71. Tax month 9.
Half of this tax stuff is jibberish to me, but nearly 50% of decembers pay has gone! nearly £300 tax in one month seems too much.
Can somebody help please!

1. your P45 would have been correct for 8 complete months
2. your additional pay for Nov in the new job had too little tax deducted; you should have paid 20% on all of it i.e. 222 as your tax allowance was used by your previous job (i.e. as per P45)
3. my maths says your total deductions from decembers pay was about 33%
4. in my view you have still paid too little tax
5. what was the tax code on Nov pay and December payslip?

I_Love_Shoes

Too little????
November it is 810L M and December is 810L.
Is this taking into account the £8100 untaxed pay too?

CLAPTON

It would seem that to end Decemeber you have

1. earned 12,048

2. paid tax of 1,167

whereas you should have paid by month 9

(12,048 - 8105 x 9/12) x 20% = 1,193

your december payslip should show the totals to dates

(I'm assuming you have no pension deductions )

zygurat789

Tax month 8 runs from 6 November to 5 December.
Did your last pay from your previous employer and your first pay from your present employer both fall within this month? Did you hand over your P45 after you received your first pay from your present employer?

chrisbur

You definately have an overlap of payments between your old employer and your new employer, in effect both old and new employer gave you a tax allowance for month 8 which caused you to underpay tax which was then collected month 9. Still a slight differance which as CLAPTON says may be due to pension, should be clarified with cumulative totals. On your payslip may quote gross to date and taxable gross to date, it is taxable you need to give.

I_Love_Shoes

I havent paid a pension this year (first pension payment comes out end of Jan) so my only deductions are tax and NI.
I stopped working at the end of October, but received Octobers overtime in November from my last job, as well as 3 weeks pay from my new job. So I got paid twice in November.
When I work out the tax for my new jobs pay from November, £1111 for the month, £87 seems to be what the tax calculators are saying. I dont have the payslip from my last job to hand but I got paid £250ish after tax from that job in November. Surely I have paid tax twice this month and therefore should be owed some?

00ec25

code 810 means you get £8,105 pa tax free ie £675.42 pm. The key to understanding tax is that it works on a cumulative basis, so the total earnings to date, less total allowance to date, gives the total taxable pay to date. This is then taxed at 20%. A tax code 810L is how we know it's on a cumulative basis

However, where you change jobs, then if your new payroll dept do not get your P45 in time, then they must not operate the cumulative basis, instead they can operate a single month in isolation. This is why your Nov tax code is 810M (stands for month 1)

to show the maths of your case....

month 8 old employer total pay to date 9371.20 allowance to mth 8 (675.42x8) 5403.33 so taxable pay 3967.87 @20% = 973

you then started the new job in month 8 and the new employer used month 1 code so non cumulative ie taxable pay 1111.46 - 675.42 = 436.04@20% = 87

that is why you had the big jump in mth 9 tax paid - you should not have been given the 675.42 allowance by your new employer in mth 8 as you already had it from your old job. So in mth 9 the tax on that (675.42 x20% = £135) has been recovered on top of the tax you should pay on your mth 9 earnings (1566 per month means you would normally pay about 178 pm in tax)

so for mth 9 your total earnings to date are 12049.33, your allowance to mth 9 is 6078.75, meaning 5970.58 is taxable. 5970.58x20% = 1194.12. Cumulatively you have already paid tax of 973 +87 = 880.78 so in mth 9 you should have paid tax of 1194.12 - 880.78 = 313. (ie 178+ backtax of 135)

in reality in Dec you paid "only" 287, ie £26 underpaid, which is why we are saying that there must be some extra deductions going on, such as pension, which has reduced your actual taxable (not total) pay by approx £130 (130x20% = 26)