Too much tax?

gnikassin

I think I've paid too much tax this month, but wanted to check if my working out it is right or if there might be any reason for this before I speak to my employer.

I started a new job on October 5th. My pay that month was £2139.92 and my PAYE was £251. This was £883 tax free and 20% on the rest which I understood to be correct from various tax calculators. My tax code that month was 1060L M1 which I understand is a temporary code.

This month, my pay will be £2318.29 but my PAYE is £463.80. This is 20% of the whole amount - so I haven't had the £883 tax free. This has impacted what I expected my take home pay to be significantly. All tax calculators seem to indicate I should have had PAYE at around £282. My tax code this month is 1060L which I believe is a very standard code.

My questions are, am I being stupid and have I completely misunderstood how tax works? Or am I right in thinking that I have been taxed to much? If I am right, is there any reason I may have been taxed too much? Could it be to do with temporary tax codes or the change in job? Or should I be expecting to get a refund at some point (which I believe would be the summer of the next tax year)

Additional information if it helps. I pay a student loan, £78 this month. NI this month was £197. I'm not eligible for the full pension at the moment, so I'm paying into NEST at £14 a month. No other deductions are taken.

Any help much appreciated!

CLAPTON

gnikassin wrote: »

I think I've paid too much tax this month, but wanted to check if my working out it is right or if there might be any reason for this before I speak to my employer.

I started a new job on October 5th. My pay that month was £2139.92 and my PAYE was £251. This was £883 tax free and 20% on the rest which I understood to be correct from various tax calculators. My tax code that month was 1060L M1 which I understand is a temporary code.

This month, my pay will be £2318.29 but my PAYE is £463.80. This is 20% of the whole amount - so I haven't had the £883 tax free. This has impacted what I expected my take home pay to be significantly. All tax calculators seem to indicate I should have had PAYE at around £282. My tax code this month is 1060L which I believe is a very standard code.

My questions are, am I being stupid and have I completely misunderstood how tax works? Or am I right in thinking that I have been taxed to much? If I am right, is there any reason I may have been taxed too much? Could it be to do with temporary tax codes or the change in job? Or should I be expecting to get a refund at some point (which I believe would be the summer of the next tax year)

Additional information if it helps. I pay a student loan, £78 this month. NI this month was £197. I'm not eligible for the full pension at the moment, so I'm paying into NEST at £14 a month. No other deductions are taken.

Any help much appreciated!

are you absolutely sure that your tax code is 1060L this month?

gnikassin

CLAPTON wrote: »

are you absolutely sure that your tax code is 1060L this month?

Yes. Looking at the payslip right now. I'm utterly confused by all of this! (not you, the situation!)

chrisbur

The most likely explanation is that you recieved your first payment from your new employer in the same tax month as the last payment from your old employer. Your old employer would have used your normal tax allowance and your new employer the emergency tax allowance; in effect giving you an extra tax allowance. When your full details were added to your new employment details this meant that there was no tax allowance left for this month.

To check for this have a look at your part 1A P45 to see what the tax month is on that and compare with your first payslip tax month; if they are the same then this is the explanation above, you will in effect be getting 13 payments in this tax year so as the tax allowance is divided into 12 parts one has to go without an allowance. If they are not the same we need to examine the figures will need full details from the P45 and your pay and tax year to date figures from both payslips along with month numbers.

gnikassin

chrisbur wrote: »

The most likely explanation is that you recieved your first payment from your new employer in the same tax month as the last payment from your old employer. Your old employer would have used your normal tax allowance and your new employer the emergency tax allowance; in effect giving you an extra tax allowance. When your full details were added to your new employment details this meant that there was no tax allowance left for this month.

To check for this have a look at your part 1A P45 to see what the tax month is on that and compare with your first payslip tax month; if they are the same then this is the explanation above, you will in effect be getting 13 payments in this tax year so as the tax allowance is divided into 12 parts one has to go without an allowance. If they are not the same we need to examine the figures will need full details from the P45 and your pay and tax year to date figures from both payslips along with month numbers.

Actually, this would make a lot of sense. Glad I asked now so I didn't ask a silly question to my employer!