PAYE Jump

gt568

Hey dudes...

Please bear with me, I'm a bit of a tax biff...

In my July payslip my PAYE deduction has jumped by just over 40 pounds. My income is broadly the same from June, about 15 pounds difference.

I can't figure out why my PAYE has gone up so much, can anyone shed any light on this?

Julys pay took me over 10k for the year if that makes any difference...?

Cheers.

purdyoaten

With no details of gross pay it is impossible to say. Can you provide gross pay details since April with tax code implemented?

chrisbur

gt568 wrote: »

Hey dudes...

Please bear with me, I'm a bit of a tax biff...

In my July payslip my PAYE deduction has jumped by just over 40 pounds. My income is broadly the same from June, about 15 pounds difference.

I can't figure out why my PAYE has gone up so much, can anyone shed any light on this?

Julys pay took me over 10k for the year if that makes any difference...?

Cheers.

It might be that your June tax was lower rather than July higher. You get a bonus in May pay a bit of 40% tax, June back to normal so get the 40% tax converted to 20% which lowers your tax for that month, July tax back to normal but looks high compared to June. Without the actual figures though this is just a guess could be other explanations.

gt568

Ok, figures as follows:

April
Gross - 3231.37
PAYE - 476.40

May
Gross - 3598.22
PAYE - 550.00

June
Gross - 3725.82
PAYE - 583.95

July
Gross - 3736.80
PAYE - 624.11

Tax code 1000L throughout.

Thoughts......??

I don't neccesarily think its worng, I'd just like to understand why there is40 sheets difference between June and July....

purdyoaten

Is the tax code the same for June and July?

gt568

purdyoaten wrote: »

Is the tax code the same for June and July?

Yes, been 1000L all year.

purdyoaten

gt568 wrote: »

Yes, been 1000L all year.

It has all to do with the amount earned to date and whether, when expanded for the full year, you are a higher rate taxpayer - earn over £42010 which is the point above which you start paying higher rate tax. At the end of May you had earned £6829 - on target for £40974 for the year - still a basic rate taxpayer.

At the end of June you had earned £10554 - on target for £42216 (now over £42010) and so a small bit of higher rate tax was paid in June.

At the end of July you had earned £14290 - your average has increased and you are on target for earnings of £42870 in the tax year - now £860 into higher rate tax.

Everything seems fine - you are just earning more!

gt568

Ok, I don't normally go into the higher tax bracket. Due to my location I'm currently getting paid a bonus monthly that will stop in mid september. When my income returns to its normal levels (april for instance) will my PAYE correspondingly drop?

Have I understood this correctly?

chrisbur

gt568 wrote: »

Ok, figures as follows:

April
Gross - 3231.37
PAYE - 476.40

May
Gross - 3598.22
PAYE - 550.00

June
Gross - 3725.82
PAYE - 583.95

July
Gross - 3736.80
PAYE - 624.11

Tax code 1000L throughout.

Thoughts......??

I don't neccesarily think its worng, I'd just like to understand why there is40 sheets difference between June and July....

On these figures you appear to be underpaying tax by varying amounts each month. Have you given the taxable gross figure for the above eg you might be in a pension that is deducted before tax is taken or some other tax free allowance. From your payslips can you give the taxable gross to date figure for each month and the tax paid to date.

gt568

chrisbur wrote: »

On these figures you appear to be underpaying tax by varying amounts each month. Have you given the taxable gross figure for the above eg you might be in a pension that is deducted before tax is taken or some other tax free allowance. From your payslips can you give the taxable gross to date figure for each month and the tax paid to date.

I'm in the armed forces, so our pension is wrapped up in that, though contributions aren't deducted per se. I can't give you thoose figures unfortunately as I only have electronic access to my wages slips at the minute and that data isn't in them.

purdyoaten

chrisbur wrote: »

On these figures you appear to be underpaying tax by varying amounts each month. Have you given the taxable gross figure for the above eg you might be in a pension that is deducted before tax is taken or some other tax free allowance. From your payslips can you give the taxable gross to date figure for each month and the tax paid to date.

Yes - I noted that they were out by £3 to £5 April and May - can only presume some Union fees or suchlike - I ignored it .... and hoped everyone else didn't notice.