Appear to have been over-taxed after salary increase - Month 1 tax code or something esle?

Dazed_and_C0nfused

Da_Crojanz said:

Dazed_and_C0nfused said:

Da_Crojanz said:

The issue isn't that the code is wrong it's more that the tax being charged is more than the code suggests it would be (according to salary calculators which I know aren't infallible but are correct almost to the penny on everything else and haven't done me wrong before).

I got a letter to say the switch to 1058L code was due to the health insurance and it gave me a total on extra tax I'd owe for the year which was under £100 (would need to dig out the letter). According to calculators that code means I should pay £620 a month tax on my salary but I pay £680.

Thanks for all the replies, will require some number crunching! I know you can input information on this kind of thing on government gateway, would that help or just muddy the waters further?

Have you applied the week1/month1 basis when using the calculators?

If not you won't have got the correct answer.

This is a simple but accurate calculator and you can do a single pay day on it using the week1/month1 option.

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

When I applied that it actually had me paying even less tax than the online calculators, though I didn't understand the question "previous tax not deducted due to regulatory limit".

The plot thickens though - went through my payslips and not only does my tax code seem to change almost monthly, but it is also on M1 most months. This is a terrible mess really, glad I've finally clicked.

I think a mix of the healthcare, pay rises in February and bonuses is causing it.

Are you including the pay and tax from previous pay days in this tax year?

Da_Crojanz

Dazed_and_C0nfused said:

Da_Crojanz said:

Dazed_and_C0nfused said:

Da_Crojanz said:

The issue isn't that the code is wrong it's more that the tax being charged is more than the code suggests it would be (according to salary calculators which I know aren't infallible but are correct almost to the penny on everything else and haven't done me wrong before).

I got a letter to say the switch to 1058L code was due to the health insurance and it gave me a total on extra tax I'd owe for the year which was under £100 (would need to dig out the letter). According to calculators that code means I should pay £620 a month tax on my salary but I pay £680.

Thanks for all the replies, will require some number crunching! I know you can input information on this kind of thing on government gateway, would that help or just muddy the waters further?

Have you applied the week1/month1 basis when using the calculators?

If not you won't have got the correct answer.

This is a simple but accurate calculator and you can do a single pay day on it using the week1/month1 option.

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

When I applied that it actually had me paying even less tax than the online calculators, though I didn't understand the question "previous tax not deducted due to regulatory limit".

The plot thickens though - went through my payslips and not only does my tax code seem to change almost monthly, but it is also on M1 most months. This is a terrible mess really, glad I've finally clicked.

I think a mix of the healthcare, pay rises in February and bonuses is causing it.

Are you including the pay and tax from previous pay days in this tax year?

No as it says not to do that if you’re referring to a M1 code (the pay packet is in effect held in isolation and previous months not relevant).

p00hsticks

Da_Crojanz said:

molerat said:

though I didn't understand the question "previous tax not deducted due to regulatory limit".

They cannot deduct more than 50% of your pay so if that was the case you would have an underpayment amount to put in that box.

Googled similar issues on the forum and saw you'd replied on a few - I think for whatever reason I'm ending up on M1 almost all the time and have been for several years. I take it I can only get anything back for this year or can I claim for previous years?

Claim for what exactly ?

If you have ended up overpaying tax at the end of the year the HMRC should (eventually) realise that and offer you a refund. 

If you end up overpaying then they may well attempt to get what you owe by adjusting your tax code for the current year.

Have you set up access to your personal tax account ?

If so then it should show if you have refunds for previous years and give you the opportunity to provide details of a bank account for them to transfer them into - I think they also write to you to let you know the refund is there and if you don't provide details they will eventually send you a cheque (so check that HMRC have your correct address for communications).

sheramber

if you want someone to check it for you tell us

How much was total taxable income for the month of August-

As  your August pay will include all your back pay from February the tax due this month will not be the  same amount next month when  your total taxable amount will be smaller.

Da_Crojanz

Thanks again all, hoping to get to the bottom of this! Total taxable income for August was 3880, the extra backdated money was on my July pay though not August.

I think to further clarify the issue. I got a 3.4K pay raise at end of July but it seems from this month that only translates to an extra £110 in my pocket per month. This doesn’t seem right at all.

On 43k in June I got 2376 in my pocket and on 46.5k today I got 2486. HR told me the cost of private healthcare hasn’t gone up since.

I’ve done various tax calculators on my new and old salary and they add up on the old one but not on the new one. One thing I’m considering is that my private health care may be being taxed at 40% not 20%. I can’t work out if this is correct or not especially considering tax brackets  in Scotland are quite complex.

Dazed_and_C0nfused

With all due respect you aren't going to get to the bottom of this on a forum like this unless you provide all the details from your payslips.

When you are on a non cumulative tax code if is usually very straightforward as all that is considered is the pay in that particular pay period and the tax code.

Da_Crojanz

Dazed_and_C0nfused said:

With all due respect you aren't going to get to the bottom of this on a forum like this unless you provide all the details from your payslips.

When you are on a non cumulative tax code if is usually very straightforward as all that is considered is the pay in that particular pay period and the tax code.

Yeah and the pay is £60 below what appears to be the standard for the tax code.

Dont expect a full answer but just wanted to know if people had experiences similar, if there was any point in contacting HMRC or if I should just write it off as money lost.

Dazed_and_C0nfused

Da_Crojanz said:

Dazed_and_C0nfused said:

With all due respect you aren't going to get to the bottom of this on a forum like this unless you provide all the details from your payslips.

When you are on a non cumulative tax code if is usually very straightforward as all that is considered is the pay in that particular pay period and the tax code.

Yeah and the pay is £60 below what appears to be the standard for the tax code.

Dont expect a full answer but just wanted to know if people had experiences similar, if there was any point in contacting HMRC or if I should just write it off as money lost.

Neither seems the right option.

It's not an issue for HMRC and why would you write it off, why not work out what has happened, I suspect you have a basic misunderstanding somewhere but without the figures it's all guess work.

Da_Crojanz

Dazed_and_C0nfused said:

Da_Crojanz said:

Dazed_and_C0nfused said:

With all due respect you aren't going to get to the bottom of this on a forum like this unless you provide all the details from your payslips.

When you are on a non cumulative tax code if is usually very straightforward as all that is considered is the pay in that particular pay period and the tax code.

Yeah and the pay is £60 below what appears to be the standard for the tax code.

Dont expect a full answer but just wanted to know if people had experiences similar, if there was any point in contacting HMRC or if I should just write it off as money lost.

Neither seems the right option.

It's not an issue for HMRC and why would you write it off, why not work out what has happened, I suspect you have a basic misunderstanding somewhere but without the figures it's all guess work.

No need to patronise (though what should I expect in this forum…)

I got a 3.5k pay raise, from that I get £110 a month in my pocket or £1320, less than 35% of the gross pay. That isn’t correct and if HMRC have made an error or is their issue. I’ve been over taxed in the past and got rebates.

isasmurf

Da_Crojanz said:

Thanks again all, hoping to get to the bottom of this! Total taxable income for August was 3880, the extra backdated money was on my July pay though not August.

I think to further clarify the issue. I got a 3.4K pay raise at end of July but it seems from this month that only translates to an extra £110 in my pocket per month. This doesn’t seem right at all.

On 43k in June I got 2376 in my pocket and on 46.5k today I got 2486. HR told me the cost of private healthcare hasn’t gone up since.

I’ve done various tax calculators on my new and old salary and they add up on the old one but not on the new one. One thing I’m considering is that my private health care may be being taxed at 40% not 20%. I can’t work out if this is correct or not especially considering tax brackets  in Scotland are quite complex.

A monthly taxable wage of £3,880 will put you in the higher rate tax band in Scotland so any taxable benefit in kind will be taxed at 40%.

Applying your personal allowance of 1058 a single month's calculation would be
£0 to £881.67 @ 0%
£881.68 to £1, 061.17 @19% = £34.23
£1,061.18 to £1,974.83 @20% = £182.60
£1,974.84 to £3,472.67 @21% = £314.55
£3,472.67 to £3,880 @40% = £162.94
Total tax £694.31 + BIK @ 40%