Paying too much tax ?

rapunzel_

Hi All,

Just want to know if I am paying too much tax. I started a new job Jan 2019 and I am on the same tax code as my previous job.

In my new and current job I get 18000 annually which works out as 1500 per month before tax.

I got my first pay check at the end of Jan and I had been taxed 335.88. This consisted of ‘PAYE Tax’ and ‘National Insurance’.

I have been looking at websites to see how much tax would come off 18000 per year and it seems even at the most none of them said 18000 would get taxed that much per month.

Not sure if it will change after April?

I would be greatful if people would be able to give me an idea if they think approx 339 tax a month is correct based on 18000 a year.

Thanks in advance,

00ec25

what are the letters/numbers at the end of your tax code, particularly does it say 1185M1

please provide the exact figures for tax and NI in Jan since they are calculated differently.

or just use a calculator...
https://www.uktaxcalculators.co.uk/payslip-calculator.php

rapunzel_

Thank you for you response.
Tax Code: 1172L
Deductions
PAYE: 240
NI: 95.88

p00hsticks

On £1500 a month you'll pay 12% NI on the amount over £702 - so that's around £96

and, assuming you have the standard tax allowance of £11,850 for this year and that you're in England, you'll usually pay 20% on the amount over £988 - so that's just over £102.



So I think you should usually be getting around £200 deducted.



So it sounds a bit much too me - but if you moved straight from one job to another it could be because for this month you;ve not had the £988 January allowance for your new job as it as used for your old one.

Did you move straight from one job to the other?

If so, check to see if your last payslip from your old employer and the first from the new one are for the same month numbernas that might explain it

rapunzel_

Hi,

Thank you so much for your reply.

In January I got paid on 4/1/19 and 18/1/19 from my old job as this was fortnightly pay - last pay check from old job was 18/1/19. I got paid for my new job on 31/1/19.

So I would have had 3 pays in January 2 from old job and 1 from new.

Does this mean tax deducted might be less at the end of this month?

I'm just worried cause its quite a big difference. Looking online it looks like I should be taking home 1299 per month when I am only taking 1164.

Thank you,

Dazed_and_confused

Yes. You had to pay more tax on the first payment from the new job because you had already used your tax code allowances due for the month to 05:02:2019 with your old job.

If you look at the details on your latest payslip (new job) and know what your taxable pay is going to be in the month to 05:03:2019 you can use this calculator to work out what tax should be deducted.

http://payecalculator.hmrc.gov.uk/PAYE0.aspx

Dazed_and_confused

I have been looking at websites to see how much tax would come off 18000 per year and it seems even at the most none of them said 18000 would get taxed that much per month.

This is really where you have gone wrong.

In the month to 05:02:2019 you almost certainly weren't earning £18,000.

You were earning whatever you were paid on 18:01:2019 plus what you were paid on 31:01:2019 (annualised).

I think you'll find your tax will be more in line with your expectations when you are paid at the end of February.