Tax Question

ClassicZach

Just almost finished my first year in a full time job and im quite confused over how tax works....i got told you get £10,600 tax free then i get taxed on anything over this but i have been taxed every month around £80-£100 like is this normal or am i missing something??

Thanks Zach

Darksparkle

ClassicZach wrote: »

Just almost finished my first year in a full time job and im quite confused over how tax works....i got told you get £10,600 tax free then i get taxed on anything over this but i have been taxed every month around £80-£100 like is this normal or am i missing something??

Thanks Zach

May help to know what you earn.

The tax free allowance of £10,600 is split between each month, so you get a monthly tax free allowance of £883.33. Anything more than this is then taxed at the appropriate rate.

So say you earn £1350 per month, you'd pay £93 in tax approx.

There would also be NI on top of that.

ClassicZach

I work in retail so i have a base contract then a fair bit of overtime each month but i would say i do come out with around £1,100 a month before tax/NI

so does that mean i am being taxed on the £216.67??

Darksparkle

ClassicZach wrote: »

I work in retail so i have a base contract then a fair bit of overtime each month but i would say i do come out with around £1,100 a month before tax/NI

so does that mean i am being taxed on the £216.67??

If you earn £1100 per month you'd pay £43 in tax and £51 nic.

ClassicZach

ahhh yeah i see now thanks!!

Darksparkle

If you are being taxed £80-£100 then something does sound wrong.

ClassicZach

well i made this month £1226.48 and im being taxed £82 i tried to work it out but i keep getting it at like 23% ish

Darksparkle

ClassicZach wrote: »

well i made this month £1226.48 and im being taxed £82 i tried to work it out but i keep getting it at like 23% ish

Tax only or tax & NIC?

ClassicZach

i think it was tax only, but i got taxed £82 and then NIC £72.78 if that helps

Darksparkle

ClassicZach wrote: »

i think it was tax only, but i got taxed £82 and then NIC £72.78 if that helps

Tax would depend on total pay to date, tax paid to date and tax code operated.

NIC is looked at in each pay period.

NIC is too high for £1226.48 per month. Should only be £66.54.

Sounds like you are paid 4 weekly, not monthly. Then the NIC would match exactly.

ClassicZach

ah fair enough then as long as its all ok i think, it is every 4 weeks i never really asked to be honest. at least im not being charged too much! :P