Overpaid Tax Please HELP!

LFC7894

Hi All,

Please could clarify if i have overpaid tax and Student loan repayment (post 2012)

I have started a new job on the 4th of September. However, as I missed the companies pay cut off date, I have not got paid till today. I was also due a 2k welcome bonus in the september payslip, which has been paid in today's payslip.

tax code 1150l
gross salary is 28k
total pay 6373.33 (which is correct)

Now this is the bit I want to question:

PAYE 1607.26
NI 561.49
Student Loan 416!!

Total deductions 2584.75 (is this not too high)???

Thanks in advance for all your help

Linton

Various things could have happened but its hard to say precisely what since we dont know your tax position prior to September. One problem could be that you were paid an amount equal to about 1.5 months salary + £2000 in one month. The way PAYE works is that it assumes that you will now be paid at this rate until the end of the tax year and so you need to pay some Higher Rate Tax. Everything should sort itself out next time you are paid at least as far as income tax is concerned.

Looking at student loan it would seem that with a monthly income of £6373 the amount of loan repayment is roughly correct. Whether this sorts itself out in the same way as PAYE I dont know.

PS from here it would seem that you would need to apply to the SLC if you wanted a refund at the end of the tax year.

chrisbur

Y4MLN wrote: »

Hi All,

Please could clarify if i have overpaid tax and Student loan repayment (post 2012)

I have started a new job on the 4th of September. However, as I missed the companies pay cut off date, I have not got paid till today. I was also due a 2k welcome bonus in the september payslip, which has been paid in today's payslip.

tax code 1150l
gross salary is 28k
total pay 6373.33 (which is correct)

Now this is the bit I want to question:

PAYE 1607.26
NI 561.49
Student Loan 416!!

Total deductions 2584.75 (is this not too high)???

Thanks in advance for all your help

This does seem a little strange, though more details may explain it.
Regarding tax £1607.26 is a strange figure. I would not expect to see a pence figure like this.(Edit Slap-dash quick calculation here turns out figure is spot on for 1150L non-cumulative when I check it properly.) Roughly it is the equivalent of tax due if this was done on a non-cumulative tax code giving one months tax allowance. This suggests possibly that they do not yet have your P45 applied.
National Insurance appears to be a little under what it should be but may be accounted for by me using the wrong split for the two months.

To get a better idea of what is happening from the payslip can you advise the year to date taxable gross and year to date tax paid, any previous pay and tax figures that are showing and the tax basis (usually follows the tax code)
What is the split for the two months I have assumed 2333.33 and 4040.00?
What are the figures on the part 1A of your P45 ie tax code, any X after it, gross and tax figures and which sections are they in?

sheramber

The OP shows his code number as 1150 I, maybe month 1 basis?

chrisbur

sheramber wrote: »

The OP shows his code number as 1150 I, maybe month 1 basis?

Have checked figures properly instead of doing a quick check and can confirm that the figure quoted is exactly the result of applying the non-cumulative tax code as if it was one month's salary.

How close this is to the correct tax position will depend on the P45 figures.

molerat

For an M1 code tax is spot on, student loan plan 2 spot on but I can't figure out the NI - I get £420.86 ?

edit : NI comes close if spread across 2 months !

LFC7894

So i have managed to located my p45 details are as follows.

Left job on 11/08/17
Started new job on the 04/09/2017
total pay to date 3177.26
total tax to date 0.00
tax on leaving 1121l

chrisbur

Y4MLN wrote: »

So i have managed to located my p45 details are as follows.

Left job on 11/08/17
Started new job on the 04/09/2017
total pay to date 3177.26
total tax to date 0.00
tax on leaving 1121l

Hopefully you have now handed in parts two and three of your P45 so that it can be applied next payday.
If it had been applied last payday and we assume that your tax code of 1121L still applies and no taxable benefits; then your pay would have been calculated on month 7 (payments made between Oct 5 and Nov 7)
Total gross 6373 + 3177 to give 9550
Tax allowance 7/12 of 11219 = 6544
Tax due on 9550 - 6544 = 3006/5 = 601
Figures simplified a little.

You are about £1000 overpaying at the moment and this will be corrected next month assuming you have given in your P45
Your tax code of 1121L is a bit under the basic 1150L Do you know if this difference is something that applies to your new job or not?