Income Tax YTD / Tax Bands

sgx.saint

Dazed_and_confused wrote: »

You need to make a note of the cumulative totals after your December payslip and then complete the calculation fields again using the next pay date, cumulative pay and tax and expected pay on the next pay day.

That should give you the tax due to be deducted from the next payment.

So I need to wait to be paid again and use the details off my next payslip?

Dazed_and_confused

Aren't the details you posted the second screenshot of the expected details from your December payslip??

Previous employment pay and tax plus the December pay and tax (refund) would give you the cumulative totals which your employer would base your January tax deduction on.

Or am I missing something??

sgx.saint

No, not missing anything, I'm just having a hard time translating that calculation to a monthly level.

Also, that calculation says tax refund of £1200 due but I'm pretty sure I've not had anywhere near that in December pay as I was still taxed, albeit not as much as I normally would.

Are tax adjustments done over the remaining months?

Dazed_and_confused

No, once a cumulative tax code is used for the first time then any adjustment is made at the first pay day.

There are instances when excessive higher rate tax might need refunding in later payslips but that all depends on future months earnings.

The first payment should bring things upto date at that moment in time.

For your December payment your employer had got the P45, which matches the previous details shown on your screenshot?

Plus you expect to be paid the amount on the same screenshot?

And your employer is using tax code S1185L?

If you know that then do you have sight of your December payslip?

sgx.saint

Dazed_and_confused wrote: »

No, once a cumulative tax code is used for the first time then any adjustment is made at the first pay day.

There are instances when excessive higher rate tax might need refunding in later payslips but that all depends on future months earnings.

The first payment should bring things upto date at that moment in time.

For your December payment your employer had got the P45, which matches the previous details shown on your screenshot?

Plus you expect to be paid the amount on the same screenshot?

And your employer is using tax code S1185L?

If you know that then do you have sight of your December payslip?

Thanks.

Yep. P45 was in place for my December pay and I was taxed less (which I assumed was the tax balancing out).

I have my December payslip and used the details off that along with my P45 to enter those values into the calculator.

Tax code is S1185L and that's confirmed on my December payslip.

I've done a rough calculation and I believe I will earn around £38K gross this year so below the higher tax rate.

So my monthly salary of £4583 (55K per annum) will only be taxed at the 21% rate until April at which point a proportion will be taxed at the higher rate.

So I guess I can just calculate 21% tax on a gross monthly salary of £4583?

Dazed_and_confused

Looking at the screenshot again, are you certain you have entered the correct figures?

The tax figure looks quite high relative to the salary. Although that may be because the wrong code was used in your first payment at the new company?

Dazed_and_confused

Scrap all that. If you have your December payslip you don't need to use that calculator. Your payslip shows the correct values.

You need the calculator for your January pay. Which will be the cumulative figures upto and including December (pay and tax) for the "previous" boxes and then your expected January taxable pay for the pay that month.

The paydate would presumably be after 5 January 2019 but before 6 February 2019.

And no, 21% is wrong. Some will be tax free (months worth of Personal Allowance) with parts of the balance being taxed at 19%, 20% and 21%.

sgx.saint

Dazed_and_confused wrote: »

Scrap all that. If you have your December payslip you don't need to use that calculator. Your payslip shows the correct values.

You need the calculator for your January pay. Which will be the cumulative figures upto and including December (pay and tax) for the "previous" boxes and then your expected January taxable pay for the pay that month.

The paydate would presumably be after 5 January 2019 but before 6 February 2019.

And no, 21% is wrong. Some will be tax free (months worth of Personal Allowance) with parts of the balance being taxed at 19%, 20% and 21%.

Thanks.

My new employer December payslip only has details of pay within my employment so like before I just add the details from my P45?

Looking at the calculation then the only thing that needs changed is the pay date?

Dazed_and_confused

Yes, the "previous" figures should be,

pay from old employer plus all pay from new employer upto and including December pay

tax from old employer plus tax deducted by new employer upto and including December pay (or deduct tax refund if total tax with new employer is a refund).

Then plug in your expected January pay and January pay date and calculate the tax

I think you'll find it will be around £744 if your taxable pay is £4,583.

Expect this to jump by the best part of £200 come the end of April pay (assuming tax code S1250L and still having taxable pay of £4,583).

sgx.saint

Thanks for all your help.

As I've not entered the higher rate bands this financial year - I assume I won't need to claim any tax relief back in regard to workplace pension payments?