Need help figuring out why I'm paying so much tax

Mediocrates

Signed up for a Personal Tax Account, had a read, understood virtually nothing and am more confused than when I started.

I have just received my second weekly payslip; here's the details of my pay and tax:

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Week 1

37.5 hrs @ £8.50 = £318.75
5.5 hrs @ £10.63 = £58.47
Gross pay = £377.22

Income tax = £75.40
National Insurance = £26.43
Total deductions = £101.83

Net pay = £275.39

Tax code / Basis = 0T / NC
NI code = A

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Week 2

37.5 hrs @ £8.50 = £318.75
4.5 hrs @ £10.63 = £47.84
Gross pay = £366.59

Income tax = £50.60
National Insurance = £25.15
Total deductions = £75.75

Net pay = £290.84

Tax code / Basis = 587T / NC
NI code = A

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My tax code is now 180TX, so I'm guessing that'll be on Week 3's payslip, unless it changes again.

Are these deductions a bit high? They seem a bit high.

Is there any way to work out what my deductions should be or do I just have to phone HMRC?

telemarks

Feeding the numbers into the Tax code calculator here and they come out about right.
https://www.moneysavingexpert.com/tax-calculator/

Next week on code 180TX assuming w1 pay gives:

• Tax Paid £69
• National Insurance £26

I guess the real question is "are you on the right tax code now?", which is a Tax Office question. As a T code means:

When HMRC needs to review some items with the employee

https://www.gov.uk/employee-tax-codes/letters

And depending on your final Tax code, you possibly overpaid some tax in week1

00ec25

you have paid exactly the correct amount of tax based on those tax codes

however, you do not provide enough info to explain why HMRC have placed you on those tax codes, or whether HMRC would be correct if they did so..

chrisbur

What were you doing before this employment?
If employed what was your tax code, taxable pay and tax paid?

agrinnall

Is this a second job? Because it looks to me like that's what HMRC think it is.

Mediocrates

Thanks for the help, everyone!

It looks like it's the wrong tax code, as this is my only job and I'm entitled to £11,500 tax-free income. I guess I have to wait a few more weeks for my P45 to go through before I can call the tax office.

chrisbur

Have you received your final payment from your last job or is there another payment due?

badmemory

Did you receive payment from both old & new job in the same tax period?