New Tax code 2014/15

f1racer

Hi everyone

I'm new here and not sure if this is the right place for this so here goes.

I may be a little late to the party on this but just got a huge shock in my payslip under the new 1000L tax code for Month 1 of 2014. Just under £100 less in my pay. A huge hit for us as we have to budget seriously like most people.

After a long discussion with HMRC it appears the tax code is correct due to the new Tax rate band and wondered if anyone else had been caught by this and why we are not all in the streets rioting.

chrisbur

f1racer wrote: »

Hi everyone

I'm new here and not sure if this is the right place for this so here goes.

I may be a little late to the party on this but just got a huge shock in my payslip under the new 1000L tax code for Month 1 of 2014. Just under £100 less in my pay. A huge hit for us as we have to budget seriously like most people.

After a long discussion with HMRC it appears the tax code is correct due to the new Tax rate band and wondered if anyone else had been caught by this and why we are not all in the streets rioting.

If you want an answer you have to give more details. For most the tax allowance has gone up which will result in paying less tax, why your tax has gone up can only be answered with more details. From this year's payslip your tax code, taxable gross and tax and from last payslip last year tax code, tax basis, taxable gross, tax paid, taxable gross to date and tax paid to date.

EDIT As a guess the probable answer is that the OP had lower average earnings last year than month 1 for this year and as a result paid some 40% tax on month 1 but none or at least less for last year. If we get the details asked for can then check for certain.
Edit2 Full monthly figures now seen and answer a bit more complicated than this full details in post 20 if anyone is interested.

CLAPTON

a few facts would help

what are the details?

most people will pay a little less tax

Funkyfreddy

f1racer wrote: »

Hi everyone

I'm new here and not sure if this is the right place for this so here goes.

I may be a little late to the party on this but just got a huge shock in my payslip under the new 1000L tax code for Month 1 of 2014. Just under £100 less in my pay. A huge hit for us as we have to budget seriously like most people.

After a long discussion with HMRC it appears the tax code is correct due to the new Tax rate band and wondered if anyone else had been caught by this and why we are not all in the streets rioting.

Devil is in the detail...people would need more info from you.

Income Tax Rates and Allowances are readily available on the HMRC website and elsewhere:

http://www.hmrc.gov.uk/rates/it.htm

Your code of 1000L which gives the £10,000 personal allowance before Tax is due on Taxable pay would suggest your code was probably (but not necessarily) 944L on your last payslip last tax year.

If so this would give you an extra £560 before tax is due over the year.

Are you sure your stated £100 less in pay is tax ?

FF

f1racer

Wow! thanks for repsonses - ok -

35k salary it has not changed gross PM £2929.71

Tax paid last month on £2929.71 on tax code 944l £323.30
Tax paid this month on £2929.71 on tax code 1000l £419.00

Take home pay last month £2332.37

Take home pay this month £2238.71

Pretty sure (although i do get things mixed up!) that i'm down a few quid this month...

thank you all for replies

f1racer

From tax month 12 payslip

Taxable pay 42,903.82
Tax Paid 6,979.60

I'm paye - no expenses or outstanding taxes to pay.

xylophone

Have you received a P2 Notice of Coding for the tax year 2014-15?

xylophone

http://www.thesalarycalculator.co.uk/salary.php Try your figures here?

chrisbur

f1racer wrote: »

From tax month 12 payslip

Taxable pay 42,903.82
Tax Paid 6,979.60

I'm paye - no expenses or outstanding taxes to pay.

Tax for last year is correct. Most likely answer now is that earlier in the year you had a larger than average salary for one or more months which pushed you well into the 40% band. Since then your earnings have gone down which has reduced your average salary and resulted in some tax you paid at 40% being converted to 20% in effect giving you a tax rebate.
Can you advise month by month what your taxable gross was for last year, it should show that towards the tax year end your average salary was going down.

f1racer

Hi , yes received several coding notices! but think lots of people did. but it did not affect my tax as they eventually sent the correct one (1000L) before new tax year.

Understand the 20% up to certain amount then 40% ranges and my take home has been the same for a while now. just rather shocked at at such a huge drop. HMRC would not comment on it other than to say it's the new rate. but seemed rather steep on a middle road salary was my opinion. I know we all have to contribute and i have no issue there but yikes!

f1racer

Mar - £2929 tax 323
Feb - £2929 tax 323
Jan - £2929 - tax 323
Dec - 2929 - tax 323
NOv - 2929 - tax 323
OCT - 2929 tax 323
Sep - 2929 tax 323
Aug - 2929 tax 323
Ah now it gets interesting

Overtime months
July - 4479 - tax 942.90
june - 4479 - tax 942.90
may 4479 - tax 942
April 2929 tax 323