Tax Payouts

Coco1234

Hi, my annual salary is £25,000

For my last pay slip (6 weeks, it goes back to monthly now) it states that my total earnings where £3044.87.
Taxable Pay £3044.87
Tax Paid £411.20
Employee Ni £196.90
Tax Code: 1185L

And that’s all it says. I received : £2436.77

That is all my pay slip says. I don’t know if this is any help. And I am still very confused but will go and speak to my employer today.

Thank you

chrisbur

Coco1234 wrote: »

Hi, my annual salary is £25,000

For my last pay slip (6 weeks, it goes back to monthly now) it states that my total earnings where £3044.87.
Taxable Pay £3044.87
Tax Paid £411.20
Employee Ni £196.90
Tax Code: 1185L

And that’s all it says. I received : £2436.77

That is all my pay slip says. I don’t know if this is any help. And I am still very confused but will go and speak to my employer today.

Thank you

The tax deducted is correct assuming that the tax code has been applied on a month 1 basis. This would be correct if you had made the following declaration on the starter checklist....
"This is now my only job but since last 6 April I have had another job, or received taxable
Jobseeker’s Allowance, Employment and Support Allowance or taxable Incapacity Benefit.
I do not receive a State or Occupational Pension."

If however you declared....
"This is my first job since last 6 April and I have not been receiving taxable Jobseeker’s
Allowance, Employment and Support Allowance, taxable Incapacity Benefit,
State or Occupational Pension"
....then the tax code should have been applied on a cumulative basis and no tax would have been paid.

Your tax code will eventually be changed to a cumulative basis (assuming there is nothing else affecting it), your employer may well be prepared to adjust for next payday if they used the wrong basis for your declaration but otherwise you will have to wait for HMRC to adjust. This should be done fairly soon but a phone call to them may speed this up.

Regarding the national insurance the normal deduction for a gross of 3044.87 would be about £281 so it appears that the employer has made some adjustment for it being two pay periods and I would say it appears about correct, though cannot say exactly without knowing the split. Certainly not far off enough to bother about.

Linton

Coco1234 wrote: »

Hi, my annual salary is £25,000

For my last pay slip (6 weeks, it goes back to monthly now) it states that my total earnings where £3044.87.
Taxable Pay £3044.87
Tax Paid £411.20
Employee Ni £196.90
Tax Code: 1185L

And that’s all it says. I received : £2436.77

That is all my pay slip says. I don’t know if this is any help. And I am still very confused but will go and speak to my employer today.

Thank you

The Income Tax is correct:


Gross income: £3044.87
Tax allowance on month 1 basis: £11850/12=£987.50
Tax paid at basic rate: (£3044.87-987.50)*0.2=£411.47

Once HMRC have issued a tax code to your employer you will be taxed on a cumulative basis and the tax will correct itself.

The NI I am less sure about. If they regarded the income as payment for 2 months the numbers seem to come out right.

chrisbur

Regarding the NI have just noticed that you give a slightly different NI figure in today's post to the figure you gave before. This figure is spot on for NI being worked out on half your earnings and then that NI figure being doubled. This gives you the two months worth of NI allowance so I can confirm that this is spot on.