Tax free allowance - Why am I being taxed so much?

jameweights

My tax code is 1000L which I believe means I should have a 10,000 quid personal allowance before I pay tax. I have been paying 150 + quid of tax (inc ni) a month on about 1000 earnings (before tax).

Shouldn't I not be paying tax? The same happened last year too, am I due a rebate or have I got this whole personal allowance thing wrong.

Caz3121

it is not a case of being able to earn £10000 before you start paying tax, You are allowed £10,000 tax free int he year but it is spread so it is £10,000 divided by 12 giving you a monthly tax free amount
NI is different and it is payable for each week you earn over the NI threshold
If your income is £12,000 per year you would be paying £33,33 per month tax and £40.44 NI, what does your payslip show?

jameweights

Caz3121 wrote: »

it is not a case of being able to earn £10000 before you start paying tax, You are allowed £10,000 tax free int he year but it is spread so it is £10,000 divided by 12 giving you a monthly tax free amount
NI is different and it is payable for each week you earn over the NI threshold
If your income is £12,000 per year you would be paying £33,33 per month tax and £40.44 NI, what does your payslip show?

My most recent one shows 68 quid tax I think and 49 NI and has been the same for most months

Caz3121

jameweights wrote: »

My most recent one shows 68 quid tax I think and 49 NI and has been the same for most months

What is your gross on your current payslip?

chrisbur

If you want any help you need to give exact details from your payslips, so far you have given "I have been paying 150 + quid of tax (inc ni) a month on about 1000 earnings" and "My most recent one shows 68 quid tax I think and 49 NI and has been the same for most months"
From your last payslip give the taxable gross, tax paid, NI paid, tax code and basis, month number, taxable gross to date and tax paid to date.

jameweights

Thanks Guys I have the exact figures here now:

1149 pre tax

995.93 post tax

146.44 deductions

Tax code 1000l

NI A 63.64
Income tax 74.60

LittleVoice

jameweights wrote: »

Thanks Guys I have the exact figures here now:

1149 pre tax

995.93 post tax

146.44 deductions

Tax code 1000l

NI A 63.64
Income tax 74.60

Tax looks about right for £1,149 gross monthly pay.
£63.64 + £74.60 = £138.24. What is the rest of the "deductions" for?

For instance do you have a loan to repay?

However you need to give the information already requested, including gross pay to date etc and whether it is on a Month1 basis.

booksurr

jameweights wrote: »

Thanks Guys I have the exact figures here now:

1149 pre tax

995.93 post tax

146.44 deductions

Tax code 1000l

NI A 63.64
Income tax 74.60

sorry but that is not enough info. Tax works on a cumulative basis so as asked by chrisbur we need to know:
month number on payslip (eg June? or mth 3?)
total taxable pay year to date
total tax paid year to date

the figures above don't make sense: if your gross pay is 1,149 (so annual salary of 13,788) and your net pay is 995.93 the difference is 153.07 not 146.44

also the total of the tax and Ni figures you give is 138.24 not 153.07 or 146.44 so are there other deductions you have not mentioned?

do you have any pension contributions deducted from you pay, although as you show your NI as Class A then I doubt it

jameweights

I also pay 7.80 to simply health and 0.40 to law club.

Taxable pay to date 3019.06 total tax 141.80 tax period 03
my pay is usually 950 gross .. it does vary month by month dependant on overtime.

chrisbur

jameweights wrote: »

Thanks Guys I have the exact figures here now:

1149 pre tax

995.93 post tax

146.44 deductions

Tax code 1000l

NI A 63.64
Income tax 74.60

1149 less 146.44 gives 1002.56 not 995.93 can you clarify?

These tax and NI figures are not what you would expect for a taxable gross of £1149 on 1000L I would expect about £63 tax and £58 for NI.
Your tax to date is not what I would expect to see for a code of 1000L cumulative.

To fully understand what is going on I think that we need to see details of all your payslips so far this year so for months 1 and 2 give the full details that you gave for month 3, do not forget the cumulative figures these are very important.

Also
Check the tax codes (and anything that follows them on the payslips (eg wk1 noncumulative X 1 )
Confirm that these tax details are on payslips not just what you have been told your tax code is.
Are the payslips being computer generated or are they typed of handwritten.

booksurr

LittleVoice wrote: »

Tax looks about right for £1,149 gross monthly pay.

No, £74 tax and £63 NI are very wrong for a gross pay of 1149 and a tax code of 1000

1149 - 833 = 316 x 20 % = £63.20 tax
1149 - 663 = 486 x 12% = £58.32 NI

it appears the OP has additional deductions on top of tax and NI as the figures he gives simply do not add up . It is possible that he is getting taxable benefits given he has health club deductions? But even that does not explain his figures and it is possible month 3 income tax may have had an adjustment for prior periods hence we need to know each months' cumulative.

Obviously NI is not a cumulative basis, so paying £63 NI rather than £58 means there is an approx £39 of extra taxable income somewhere, if that figure is indeed correct