Tax question with pay

chrisbur

Ray_Coman said:

Perhaps you should check whether the tax code is cumulative or non-cumulative.  That would be indicated by X or M1W1 after 876L.  If the code is non-cumulative it will be even less straightforward to determine the reason for the amount of tax deducted at source.  I would suggest that you consider completing the following: form: https://www.tax.service.gov.uk/shortforms/form/P2
https://comanandco.co.uk/

As far as the OPs original question is concerned the tax code is a bit of a red herring; though they ought to find out why they are not on 1250L.  They have advised earlier that the first payslip is cumulative and the second non-cumulative but the change to the tax code would not give anything near the difference to their pay that they are querying.  It is difficult to work out what the actual difference in the wages is that is being queried by the OP and it is possible that they are falling into the trap of expecting twice the net if they get twice the gross. As they are paid through an umbrella company this is going to be more noticeable than for someone who is paid by an employer.  As well as paying the full 20% tax 12% NI and possibly student loan on the extra there is also the employer's  NI and possibly the umbrella fees to be accounted for.

curtis122

Still do not know why I am on the tax code I am on and on non cumulative but trying to find out, but worked out why my YTD seemed high.
I got paid for the month I worked in March in April. I was looking at payslips where the dates 'worked' started from April but as I've just realised from going back over a few previous payslips, is that the tax year when the tax is taken into account is at the point when its being paid and not when its being earnt. So whenever I thought back to work I did in March or before and any money earnt and tax paid for this time, I associated it with last FY (seems so obvious now and feel so stupid for thinking its when its worked!) So my Gross pay for March which was paid in April was £3155.17 and the YTD on that payslip states £3155.17.

Jeremy535897

Log into your personal tax account and look at the code breakdown.

chrisbur

curtis122 said:

Still do not know why I am on the tax code I am on and on non cumulative but trying to find out, but worked out why my YTD seemed high.
I got paid for the month I worked in March in April. I was looking at payslips where the dates 'worked' started from April but as I've just realised from going back over a few previous payslips, is that the tax year when the tax is taken into account is at the point when its being paid and not when its being earnt. So whenever I thought back to work I did in March or before and any money earnt and tax paid for this time, I associated it with last FY (seems so obvious now and feel so stupid for thinking its when its worked!) So my Gross pay for March which was paid in April was £3155.17 and the YTD on that payslip states £3155.17.

It will be a lot simpler to understand your tax if you could list the following details for each payslip....
Taxable gross 
Tax paid
Tax code
Anything with the code eg cumulative non-cumulative X 0 1 month 1 mt1 or similar
Taxable gross to date
Tax paid to date
Month number or date paid.

Why you are on the tax code you are is something only HMRC will know, but is is fairly standard for them to apply a tax code reduction on a non-cumulative basis as it avoids the code being back dated to the start of the year and you getting hammered for tax when it is applied.