Help Please. Paid too much tax in take home pay this month.

Sunny2good

Hi All,

A friend of mine got a bonus this month and has just approached me for some help to look into how much tax he paid this month. I have crossed checked with SalaryCalculator and listentotaxman and he seems to have paid too much Tax.

Could someone please help verify ?

His Salary: 33990
Taxcode: 755L M1

Monthly Salary: 2832.5
Bonus: 6761.59
Total Monthly: 9594.09

Deductions:

Tax Paid: 3012.76
Student Loan: 745
NI: 469.80
Season Ticket Loan: 199.20

Total Deductions: 4426.76

Net Pay: 9594.09 - 4426.76 = 5167.33

I am not sure how tax was calculated. Does it look like he has paid alot of tax this month to you?
If yes, how can it be claimed back.

Many Thanks,

Sunny

scottishlass

His bonus will have taken him over the higher rate tax allowance (£34,371) and so he will be taxed at that rate on the part of the bonus over that I believe.

CLAPTON

his tax code at 755M1 is probably incorrect as the 'M1' means he only get one month tax allowance rather than unused for the whole year


why is his tax code 755M1?

CLAPTON

scottishlass wrote: »

His bonus will have taken him over the higher rate tax allowance (£34,371) and so he will be taxed at that rate on the part of the bonus over that I believe.

he's probably not a 40% tax payer.

the 34370 is in addition to the tax free allowance

xylophone

http://www.hmrc.gov.uk/incometax/emergency-code.htm
He should contact HMRC.

chrisbur

My guess would be that the tax office made some adjustment to the tax code after the start of the tax year so applied the adjustment on a month 1 basis to avoid a large increase in tax for one month if it was backdated to the tax year start. If this is the case then should have been a tax advise all about it sent to the employee.

As we are so near to the tax year end it will not get sorted now so will have to wait untill after the year end. To check what the tax position is full details of taxable gross for year and tax paid would be needed along with details of why the tax code had been reduced.