Confused by Decembers pay

Takeaway_Addict

Red-Squirrel wrote: »

Bah humbug nobody needs the forum police thanks!

Said you....as you tried to police it......:)

Merry Christmas!

GambledLife

Soooooo I got my pay slip today and here were the figures:

I still think that PAYE tax is far to high might have to call HMRC to understand it, what do people think?

Salary: 3497.08
Bonus: 6000
Salary sacrifice (pension 5%): 174.85

PAYE Tax: 2776.20
NI: 488.50
Student Loan: 701

Net pay: 5356.53
Tax code: 1132L M1

Lorian

Very quickly:

Gross is £9497.08 less
Deductions £174.854

Making Taxable Pay £8378.47

Tax Free per month (based on code) 943.75

Tax @ 20% £575 (from tax free up to £34500/12)
Tax @ 40% £2201.39 (band up to above what you got)
Total Tax £2776.39

Looks right to me.

Consider increasing pension contributions, ideally under salary sacrifice to limit tax liability. You'd pay no tax on the £6K if you push into pension before tax year end. Would need including in the right one of the three contribution boxes on the tax return.

all assuming you are paid 12 times a year

GambledLife

That sucks I usually only pay 475.50 in tax I figured I'd pay three times as much or maybe a bit more but that's 5.8 times the usual monthly tax

Lorian

I'd overlooked the fact you don't appear to normally be a higher rate tax payer on your normal salary. So while I stand by my calculation for that month if you get no more bonuses and no pay rise before April then you should expect a slight reduction in tax over normal in the next 4 pay packets to offset some you have paid this month.

GambledLife

I really appreciate you helping me make sense of these figures, I find this stuff difficult to understand.