Expenses

Myboyoscar

Hi, Iv been working from home since the beginning. Iv recently applied for my expenses claim through the government. I work 25hrs a week. Iv noticed recently that Iv had tax taken of my wage. I don’t pay tax unless I do more hrs. Is this right? Should I not be given it back rather taken away?

unholyangel

How many hours you work has no bearing on tax. Someone who earns £500ph and only works 1 hour a week will be taxed the same as someone who is paid £10 per hour for 50 hours. 

What were the details from your most recent payslip? Tax code, pay period (should be a week or month number), total earnings to date and total tax to date? And what was your previous tax code (before it changed)?

Myboyoscar

My old tax code was 1162N new one is 1125N. My total tax gross for last year was £1136.64. My total gross pay so far is £1350.48 and tax paid to date £46.40. Hope this helps. Thanks

sheramber

A code of 1125 is lower than 1162 so you pay tax sooner.
 1162 allows you to earn £11620 a year  before paying tax.
1125 allows you to earn £11250 per year before you pay tax.
How is code number made up compared to the previous code number?

p00hsticks

The suffix N means that you've signed up to transfer 10% of your allowance over to your spouse.

1125N is what  I'd expect to see for someone who's done this, from having the usual 1250L tax code (for an allowance of £12500). It sounds like HMRC haven't adjusted your tax code for this year to apply any working from home allowance as of yet.

unholyangel

Myboyoscar said:

My old tax code was 1162N new one is 1125N. My total tax gross for last year was £1136.64. My total gross pay so far is £1350.48 and tax paid to date £46.40. Hope this helps. Thanks

Are you sure the tax codes are the right way round? 1125N was the standard code last year for someone who is transferring 10% of their allowance to their husband/wife. And it doesn't make sense for you transfer that allowance if the £1350 is your normal wage/you're paying tax every month (because you just end up paying whatever tax amount your spouse is saving). Plus working from home expenses would give 1156N 

While for this year your reduced personal allowance plus homeworking would give 1162N