Wrong Tax Code ?

Milo23988

Hi Everyone

i hope this is the right section for this topic

i have just relocated to london from abroad and the way tax works here is a bit different from where i come from so i'd like to have just a little advice on my situation

I have just started a job where i am working on a variable shift from 3 to 5 days a week . This means that my annual pay is variable. I have recently received my payslip where my tax code is 1000L.
i've earned 1200 pounds and my deductions are of 290 pounds including NI. :eek:

I know my employer has communicated to HMRC that my yearly income is 15000 pounds and that's not true as i work 3 to 5 days a week , my income is not fixed .

I'd like to know if this tax code is correct for my current employment or if there would be one that is most appropriate for my current situation


Thanks!:)

milo

Derwent

1000L is the standard tax code for everyone, your tax code is not dictated by your earnings (unless you have other taxable benefits such as company car etc). It basically means you can earn £10,000 tax free, and pay tax on anything above that. So if you earned £1,200 in a month then you have £833.33 tax free and then pay tax on the remaining £366.67

Having said that, your deductions look very high - they'd usually be around £137 for someone with a gross monthly wage of £1,200 on the standard tax code.

chrisbur

Can you give the full details from this payslip as these figures you have given look a bit strange....
Taxable gross
Tax paid
NI paid
Any other deductions
Tax code
Tax basis
Month no
Taxable pay to date
Tax paid to date
Previous gross
Previous tax

Also advise if this was tour first payment in this employment.

Milo23988

Thanks for the reply Derwent! , it looks high yes

Chris :

Taxable gross: On my payslip there's a voice under "Year to date"
where Taxable Gross Pay says : 8.305.62
if you you mean the total payments for this month only before any deduction :1159.44
Tax paid 232.60
NI paid 59.57
Any other deductions
Tax code 1000L
Tax basis: not sure about this as there's no Tax Basis voice in my paylslip
Month no: i have been working in this job since may and since last month my tax code was 1000L (W1/M1). this is the first month under the 1000L tax code
Taxable pay to date
Tax paid to date; maybe this is Taxable Gross Pay under the Year to date section where it says : 8305.62
Previous gross: previoous gross was 1280.00 , i was under the 1000L (W1/M1) tax code
Previous tax: 89.00 and NI was 74.05

Thanks Chris if it makes easier i could pm you a copy of my payslip maybe ? let me know , Thanks again for your help

chrisbur

It is looking like you have had a month's tax allowance from old and new employer for the same month but to confirm I need a few more details. Tax paid to date usually appears after the taxable gross pay to date the 8305.62 figure. The month number is usually near the tax code but if not sure I just need the number of payments you have received so far from your current employer and the date that you were paid the last one, and if possible the first one.

Milo23988

Hi Chris, thanks for your help !

after the taxable gross pay i have:

Income tax : 660.20
employee nic : 250.29
employer nic : 287.83

so far i have received 5 payments from my current employer.

First one : 5th june 2014

Last one : 5th october 2014

if it helps, on the previous payslip (5th september) when i was on a 1000l (W1/M1) code figures looked like this:

taxable gross pay: 4,241.30

Income tax : 180.40
employee nic : 190.72
employer nic : 219.32

chrisbur

Does not appear to be a problem with the changeover from old to new employer and tax paid to date appears correct so next place to look is the separate payments from your new employer.
You have had five payments can you list the gross pay, tax and NI for each of these?

Milo23988

here:

5th june 2014:

1000L (W1/M1) tax code

gross: 895.05
income tax : 12.00
NI: 27.85

5th july

1000L (W1/M1) tax code

gross: 1143.75
income tax : 61.80
NI: 57.69

5th august

1000L (W1/M1) tax code

gross: 922.50
income tax :17.60
NI: 31.14

5th september

1000L (W1/M1) tax code

gross: 1280
income tax :89
NI:74.04

Last one (5th october) tax code changed to 1000L

gross:1159.44
income tax :232.60
NI: 59.57

thanks

chrisbur

Just to confirm some figures. These are all gross figures.

From your last job we have 1280
then five payments of 895.05 1143.75 922.50 1280.00 1159.44
which totals 6680.74

Yet from payslip for October we have a gross to date of 8305.62

This gives us an unaccounted gross of 1624.88

Have you had any payments of around this figure?

On your last payslip you had a previous gross figure of 1280 was there any figure in this space on the payslip before.

Milo23988

hey chris

i have been working 5 months on this job and 895.05 1143.75 922.50 1280.00 1159.44 are the gross figures i have been payed since the 5th of june (date of my first payslip on this job) .

mm.. i don't understand what you mean when you say that you have 1280 from my previous job ... is it from my previous job,the one i was doing before i started this? the last payment from my previous job was of 1240 pounds.

on the previous payslips the figures i have are the ones i wrote on the previous message and there's no other figure apart form these ones june895.05 july1143.75 august922.50 september1280.00 october 1159.44.

thanks

chrisbur

Milo23988 wrote: »

mm.. i don't understand what you mean when you say that you have 1280 from my previous job ... is it from my previous job,the one i was doing before i started this? the last payment from my previous job was of 1240 pounds.

We have a misunderstanding of previous gross, the figures I require are your gross earnings and tax paid in your employment before you started this job. That is gross to date and tax to date from your last payslip for old job, or from P45 if you have one.

These details are usually shown on your payslip under a heading of "Previous Gross/Tax" or something similar.