Personal Allowance question

Britta_Ekland

thanks Chris - the only thing i didn't understand was were the £15600 figure come from as i totalled up £11000 as my gross figure by end october. Calculated from 10th Sep - end October

chrisbur

Britta_Ekland wrote: »

thanks Chris - the only thing i didn't understand was were the £15600 figure come from as i totalled up £11000 as my gross figure by end october. Calculated from 10th Sep - end October

Sorry got a bit confused here, you advised
"....gross pay for next month should be £11,100 (but minus the £3000 advance) so £8100 gross"
The advance does not come from gross pay it must be deducted from net pay what I was after was your gross pay for next month to add it to your gross pay owing for last month, did not realise you had already done that.
Your gross for next month figure includes the £4500 owing for last month, is that correct?
Will recalculate this evening.

Britta_Ekland

yes thanks chris it does include the £4500.

many thanks
Britta

chrisbur

Same assumptions as before

starting gross is £11100.00
Tax allowance for month 7 on 1060L cumulative is £6188.63
£11100.00 less £6188.63 is a taxable pay of £4911.37 which gives tax of £982.20
National insurance is £362.61 on £4500.00 and £404.61 on £6600.00 to give a total of £767.22

So we have gross £11100.00 less tax £982.20 less NI £767.22 less advance of wages of £3000.00 gives a net pay of £6350.58 or thereabouts.

As before if treated as one pay period your net will be higher.

Britta_Ekland

Thanks Chris so much for working this out for me!

So my main question is answered even though I haven't worked this financial year until now I still have some tax in first pay packet. I thought my allowance would mean no tax in my first pay.

Caz3121

chrisbur wrote: »

Tax allowance for month 7 on 1060L cumulative is £6188.63

Britta_Ekland wrote: »

So my main question is answered even though I haven't worked this financial year until now I still have some tax in first pay packet. I thought my allowance would mean no tax in my first pay.

you will have 7 month's worth of tax allowance, rather than paying tax on everything over £833 which is the usual months tax free allowance

If you had received a calculation last month on your £4,500 there would have been no tax then but tax would have kicked in from this month

Britta_Ekland

Thanks Caz!

Britta_Ekland

hi finally got paid and received £3991 was not expecting that and the tax code is 1060ML
can anyne explain why such heavy tax and can i claim back. I finish this contract end December
thanks

chrisbur

Britta_Ekland wrote: »

hi finally got paid and received £3991 was not expecting that and the tax code is 1060ML
can anyne explain why such heavy tax and can i claim back. I finish this contract end December
thanks

Sounds like you have been put onto a month 1 code, did you check with the payroll dept, that they had your P46 with option A selected so that a cumulative tax code should be used as I suggested in posts 19 and 21.

Can you give the full figures gross, tax, NI, deduction of advance and net to check exactly how this was calculated?

Britta_Ekland

Tax Code1060LM1


Pay Method: BACS
Month No:
AMOUNTS
Previous Month Pay 4,500.00
Basic Pay 6,500.00
Gross Pay 11,000.00
Taxable Pay 11,000.00
Income tax -3,516.25
NI Contribution -492.56
Advance Deduction -3,000.00
Net Payment 3,991.19