Help With The Dark Art of Tax

SeaCutter

Can anyone help me with understanding tax please!?
I have recently been told I am a higher tax payer and therefore choldcare voucher allowance has gone down and I dont understand why.

I earn £43903 which includes car and medical benefits but pay £233.33 per month to a company pension scheme with a salary sacrifice.

I thought the tax relief on this would have brought me back under the high tax threshold.

Does anyone know!?

thanks
A confused SeaCutter

zygurat789

SeaCutter wrote: »

Can anyone help me with understanding tax please!?
I have recently been told I am a higher tax payer and therefore choldcare voucher allowance has gone down and I dont understand why.

I earn £43903 which includes car and medical benefits but pay £233.33 per month to a company pension scheme with a salary sacrifice.

I thought the tax relief on this would have brought me back under the high tax threshold.

Does anyone know!?

thanks
A confused SeaCutter

The crucial thing is, is the £43,902 before or after salary sacrifice?

SeaCutter

Hi,
That is my gross salary including benefits so i assume before salary sacrifice?
thanks

SeaCutter

@blondebubbles

Hi, my code is 625L
thanks

notanewuser

Assuming you're talking about 2014/15 you'd need to "lose" another £3k per year of gross salary to be a lower rate tax payer, hence getting stung on the childcare vouchers.

(£43903 - £2800 salary sacrifice - £6259 tax free allowance = £34844. £31865 of this will taxed at 20% with the remaining £3k taxed at 40%)

Skint_yet_Again

SeaCutter wrote: »

Hi, my code is 625L

As we are now in a new tax year ... is that your tax code for 2013-14 up to 5 April 2014 or is it your new 2014-15 tax code from 6 April 2014 ?

The basic personal allowance last year was 9440 basic tax code 944L ....but has now increased to 10000 - basic tax code 1000L - do you know why your code is lower / what deductions are included ? This may affect higher rate calculations

notanewuser

Skint_yet_Again wrote: »

As we are now in a new tax year ... is that your tax code for 2013-14 up to 5 April 2014 or is it your new 2014-15 tax code from 6 April 2014 ?

The basic personal allowance last year was 9440 basic tax code 944L ....but has now increased to 10000 - basic tax code 1000L - do you know why your code is lower / what deductions are included ? This may affect higher rate calculations

They have a company car and medical benefits - says so in the first post.

Skint_yet_Again

notanewuser wrote: »

They have a company car and medical benefits - says so in the first post.

But surely if we are adding the benefits to the gross pay then we should be giving the full personal allowance otherwise aren't we including BIK twice ?

notanewuser wrote: »

(£43903 - £2800 salary sacrifice - £6259 tax free allowance = £34844. £31865 of this will taxed at 20% with the remaining £3k taxed at 40%)

Please correct me if I'm wrong. Thanks

notanewuser

Skint_yet_Again wrote: »

But surely if we are adding the benefits to the gross pay then we should be giving the full personal allowance otherwise aren't we including BIK twice ?




Please correct me if I'm wrong. Thanks

The OP hasn't given enough information to know for sure.

Skint_yet_Again

Which is why I asked OP about tax code as they have stated that the benefits are included in the salary figure given.

SeaCutter wrote: »

I earn £43903 which includes car and medical benefits but pay £233.33 per month to a company pension scheme with a salary sacrifice.

A confused SeaCutter

notanewuser wrote: »

Assuming you're talking about 2014/15 you'd need to "lose" another £3k per year of gross salary to be a lower rate tax payer, hence getting stung on the childcare vouchers.

(£43903 - £2800 salary sacrifice - £6259 tax free allowance = £34844. £31865 of this will taxed at 20% with the remaining £3k taxed at 40%)

OP - how much is your car and medical benefit and is this deducted from your tax code?

xylophone

Any help here?

http://www.thesalarycalculator.co.uk/about.php


http://www.scottishlife.co.uk/scotlife/Web/Site/Adviser/TechnicalCentralArea/FAQsArea/Questions_and_Answers.asp