Understanding my payslip and tax paid

Pauleb80

Hi there, I was hoping someone could help me understand my recent payslip and how my tax has been calculated as I appear to have paid more tax than I was expecting based on what the online salary calculators predict. I appreciate you'll need some specifics from me to be able to advise, if you can let me know what info is needed I'll happily provide. Thanks in advance for any help.

chrisbur

Pauleb80 wrote: »

Hi there, I was hoping someone could help me understand my recent payslip and how my tax has been calculated as I appear to have paid more tax than I was expecting based on what the online salary calculators predict. I appreciate you'll need some specifics from me to be able to advise, if you can let me know what info is needed I'll happily provide. Thanks in advance for any help.

To start with from your payslip the taxable gross, tax paid, tax code/basis, taxable pay to date, tax paid to date and the week or month number. If week/month number not showing the date of payment.

Pauleb80

5250
1133
1174L
5250
1133
1

Salary calculators all suggest tax should be c. 1045 pcm so on that basis the looks like I've paid 88 too much. Thanks

LilElvis

Pauleb80 wrote: »

5250
1133
1174L
5250
1133
1

Salary calculators all suggest tax should be c. 1045 pcm so on that basis the looks like I've paid 88 too much. Thanks

I don't know what calculators you've been using but putting those details into the HMRC one gives a tax figure of £1,133.37 so it looks absolutely correct.

https://www.tax.service.gov.uk/estimate-paye-take-home-pay/your-pay

chrisbur

The best calculator is this one....
http://payecalculator.hmrc.gov.uk/PAYE1.aspx

Put the figures in here, use 0.00 for previous figures and it gives exactly £1133.00.

You will find that if you earn the same each month your tax will go up to £1133.40 next month and will stay at that for a while with an occasional £1133.00. This is because tax is only calculated on the full pounds of the part of your pay tax is paid on, but the full un-rounded figure is carried forward each month. In this way you end up paying round about the £1133.37 that is the estimate given on the .GOV site.

dawyldthing

Use listentotaxman" you don't say if there's a pension contribution as that will reduce take home pay

Pauleb80

Thanks, yes there is also a 4% pension contribution which I assume is why the tax calculator has shown a different amount.

dawyldthing

Pauleb80 wrote: »

Thanks, yes there is also a 4% pension contribution which I assume is why the tax calculator has shown a different amount.

Yeah if it's the nest it's just gone up to 2.4% from 0.8% after £500 a month roughly but if you're under a different pension might be that though

chrisbur

Pauleb80 wrote: »

Thanks, yes there is also a 4% pension contribution which I assume is why the tax calculator has shown a different amount.

The tax is correct for a taxable gross of £5250
If your pension is deducted from the gross to arrive at the taxable gross (ie. gross is £5468.75 and pension of £218.75 ) then no problems. If though your pension is deducted from your net pay and the pension provider claims the tax then hopefully you are aware that you will have to reclaim part of the tax as you are paying tax at 40%.
https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Pauleb80

Thanks, all very confusing. Just dug out paperwork for my pension, it says it's a group personal pension plan. Paperwork says 'company will deduct employee contributions equating to 5% of gross salary after tax relief and pay them to the pension provider monthly.' I have no idea what that means other than I'm making a monthly pension payment of 210.

Dazed_and_confused

You need to speak to your employer about this to find out exactly how your pension works.

You are being taxed on £5,250 so if your actual pay for the month was about £5,460-5,470 then you have received tax relief through your salary for the pension payment i.em you are only paying tax on £5,250 not the £5,460-5,470.

But if the pension is deducted from your net pay then you would normally get tax relief added to your pension fund by the pension provider.

And if you salary sacrifice it could be different from either of these methods.