Should be paying more tax but still on 1250L

NKTZ21

Hello. New to the forum. I have a question. I have just started a job last year october where I am  earning enough to be in the higher tax bracket (goverment will take 40%  )
However, on checking my payslips I am still getting taxed at the normal rate. Someone told me thats because it will change in April this year. I do not want to be owing the tax man any money, can someone tell me if this is correct please? On my payslip it says my tax code 1250L -is this correct? I think I'm supposed to be on a different tax code.  I'm sure an accountant or tax specialist may be able to give me an answer, but I have to  pay for this service and i'm trying to save as much as I can so I can save for a deposit.
Any advice please?
Thank you

calcotti

If you only started in October it’s not the annual wage that matters at this point, it’s how much you will have earned in the 2020-21 tax year. Will that actually take you into the higher band?

Dazed_and_C0nfused

Why do you think a different tax code is necessary?

What adjustment is required?

How much have you earned for the tax year to date on your latest payslip?  And is that your only job in this tax year?

NKTZ21

calcotti said:

If you only started in October it’s not the annual wage that matters at this point, it’s how much you will have earned in the 2020-21 tax year. Will that actually take you into the higher band?

Hi. no not in the 2021 tax year, i was looking for my payslip but I cant find it. I started getting just over 7.5k per month in October in my bank account.

NKTZ21

Dazed_and_C0nfused said:

Why do you think a different tax code is necessary?

What adjustment is required?

How much have you earned for the tax year to date on your latest payslip?  And is that your only job in this tax year?

I read if I get over 125k per year I should be on a different tax code, i'm trying to read around until I can find a good person to look after my finances.  I'm not sure if any adjustment is required, I have to fill in a self assesment which i believe happens in April. I need to get someone recommend to look at this but its so hard to trust someone who will have my best interests in mind. I have looked on this site also for advice, they say you shouldn't go to a bank manager, rather someone independant, until I find someone,  I have come to this site for abit of knowledge.

Dazed_and_C0nfused

You may start paying higher rate tax in March but need payslip details to know for sure.

Was this your first (only) job in the current tax year?

Dazed_and_C0nfused

NKTZ21 said:

Dazed_and_C0nfused said:

Why do you think a different tax code is necessary?

What adjustment is required?

How much have you earned for the tax year to date on your latest payslip?  And is that your only job in this tax year?

I read if I get over 125k per year I should be on a different tax code, i'm trying to read around until I can find a good person to look after my finances.  I'm not sure if any adjustment is required, I have to fill in a self assesment which i believe happens in April. I need to get someone recommend to look at this but its so hard to trust someone who will have my best interests in mind. I have looked on this site also for advice, they say you shouldn't go to a bank manager, rather someone independant, until I find someone,  I have come to this site for abit of knowledge.

There are millions of reason for having a different tax code.

Earning over £100k is one reason.  You should read up on adjusted net income as that is crucial when earning over £100k.

sheramber

You can be due to pay 40% tax without having an income over £100k. Your code number automatically takes that into account.
if you net adjusted income is going to be over £100k then you can advise HMRC of that in your personal tax account- you need a Government Gateway account. 
They  will then amend your tax code accordingly.

tim_london

Tax year is 1 Apr - 31 Mar.  Did your income from Apr-Oct plus the income since them add up to over 100k before tax.  If not then your code is still correct.

Either way, sign up to govt's tax portal - https://www.access.service.gov.uk/login/signin/creds.  Here you can see their estimate of how much they think you will earn for the current tax year.  My experience is that they are frequently wrong especially when you start a new job, so make sure to correct it.

Note - if you are earning £125k but you are putting £25k into pension via salary sacrifice, then you should enter £100k as your expected income.  Your tax code should still be 1250L because you are earning under £100k.  

macman

If your salary increased to £7.5K per month in October, then by tax year end '21, you will have earned approx £45K in the new job. With the first 6 months of the tax year, on a lower salary, you won't be anywhere near the £100K point at which you start to lose your personal allowance: and you won't lose all of it until you hit £123K.
This assumes that you do not have additional taxable income from other sources.
If you want someone to do your self-assessment for you, then you need an accountant or book-keeper:a bank manager is not remotely suitable, or even able to.

NKTZ21

Dazed_and_C0nfused said:

You may start paying higher rate tax in March but need payslip details to know for sure.

Was this your first (only) job in the current tax year?

I had a part time retail job in July paying me £750 per month, then in October I started getting the 7k - I work in entertainment.