2 different amounts of tax paid when earnings & code the same

Nine_Lives

I'm sure this must be ok but hoping someone can clear up the question of why.
February - amount earned 1352.16
Tax Code - 870L
PAYE Tax = £73.60
NI = £86.40
Student Loan = £3.00

March - amount earned 1352.16
Tax Code - 870L
PAYE Tax = £125.20
NI = £86.40
Student Loan = £3.00

I know March has 3 more calendar days being the obvious difference, but does 3 days equate to £51.60 difference or is there another reason?

suso

What was the code and earnings to date in January ?

Nine_Lives

Somewhere around January/February she sent a letter off to the tax folk to say she's due money as she pays to register with the General Dental Council. They said they'd change her code - hence the change from Jan to Feb.

January's details:

amount earned - 1352.16
Tax Code - 839L
PAYE Tax = £130.40
NI = £86.40
Student Loan: £3.00

The total gross earnings to date for each month....

Jan = 13,521.60
Feb = 14,873.76
Mar = 16,225.92

dzug1

There was a refund (well reduced tax payment) in February because of the changed tax code - you were getting back the tax overpaid in earlier months, not just February

Dazed_and_confused

The February figures will have given credit in respect of the new tax code for the period from April 12 to Feb 13 ie 10 months arrears plus February itself. March becomes the new norm although from April the tax will probably go down again as a result of the increase in basic personal allowance - the code for 13/14 is likely to be at least 944L

suso

So the change in code was 31, (870 - 839), this means an increase in allowances of 310.

As they are a basic rate tax payer they will pay £62.00 less tax in a year, or just over 5.00 per month

The code was operated in month 11, so 11/12's of this 62 refund was given back to them in February, (approx 55.00 ) this is refunded by deducting less tax that month.

Looking at the figures this has happened and all is well.

And the figure for tax deducted throughout the year should be about £1503.20

SeekTruth

Nine_Lives wrote: »

Somewhere around January/February she sent a letter off to the tax folk to say she's due money as she pays to register with the General Dental Council. They said they'd change her code - hence the change from Jan to Feb.

January's details:

amount earned - 1352.16
Tax Code - 839L
PAYE Tax = £130.40
NI = £86.40
Student Loan: £3.00

The total gross earnings to date for each month....

Jan = 13,521.60
Feb = 14,873.76
Mar = 16,225.92

I'm ignoring the Student Loan, because I don't know how it's handled and I think it's small enough not to have a significant effect on the calculations.

January is 10th month of tax year. Code 839L means total year's allowance of £8399, so by end of January allowance = £6999 (10/12 of £8399). Total tax to date is 20% of (£13521.60 - £6999), equals £1304ish.

February is 11th month of tax year. Code 870L means total year's allowance of £8709, so by end of February allowance = £7983 (11/12 of £8709). Total tax to date is 20% of (14873.76 - 7983), equals £1378ish, which is £74ish higher than in January.

March is 12th month of tax year so by end of March the allowance is £8709. Total tax to date is 20% of (16225.92 - 8709), equals £1503ish, which is £125ish higher than in February.