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Am I paying too much tax?? UPDATE & QUERY
Comments
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Very simplistically if you are due higher rate relief on £3,220 that could well be £644.
A tax code adjustment of £1,610 for someone paying higher rate tax under PAYE on at least £1,610 will save £644 in tax (£1,610 x 40%).
It has nothing whatsoever to do with being for 6 months, you're just not following the maths (for those particular figures).0 -
Dazed_and_C0nfused said:Very simplistically if you are due higher rate relief on £3,220 that could well be £644.
A tax code adjustment of £1,610 for someone paying higher rate tax under PAYE on at least £1,610 will save £644 in tax (£1,610 x 40%).
It has nothing whatsoever to do with being for 6 months, you're just not following the maths (for those particular figures).0 -
You can't do anything to change an individual pension tax relief figure in your tax code.
You need to ensure all elements of the tax code calculation are as accurate as possible and then HMRC will calculate the appropriate tax code entry.
The most important things are your estimated earnings from all employments/pensions you will have in the current tax year (the taxable pay figure you expect to see on your P60 in due course).
And the gross amount of any relief at source pension contributions.
If you have other entries such as job expenses, company car or other benefits or professional subscriptions make sure they are all upto date.0 -
Dazed and Confused - thanks again for your info previously. I have been working this matter through with HMRC and in Dec I received a cheque for issues over the previous number of years. I have had some resolution to the current year but I will still be owed money back from 22/23 come the end of the financial year.
I am in the process of potentially looking to purchase a property and was hoping that you could check my figures below based on your advice before to make sure I am calculating my take home salary correctly. I am also looking to confirm that as a result of my pension contributions that I am below the higher rate tax threshold so that my wife can maintain child benefits.
As you previously identified my pension is relief at source & I am looking to confirm all of this so that HMRC have the accurate info from the start of the year 23/24 and as such that will help to ensure that my monthly tax is correct and I'll hopefully not have to go through the process that I have this year to re-coup tax paid but not due.
Salary for tax - £61,672
Taxable Benefits - £1,890
Total Taxable Income - £63,562
Gross Pension Contribution - £13,500
Income Tax Due (my workings) - £10,240 (based on below)
NICS (my workings) - £4,790
Annual Take Home Salary - £35,842 per annum or £2,987 per month
So my workings as per your previous advice is the following:
Taxable income of £63,562
After deducting personal allowance (£12,570) = £50,992
Basic rate band (£37,700) + relief at source pension contributions (£13,500) = £51,200 @ 20%
Total Tax for the year = £10,240
I hope you don't mind taking a look at this and checking my figures are accurate. You did a great job back in Sept, so think I have finally grasped how it all works but keen to get you to double check.0 -
Bear777 said:Dazed and Confused - thanks again for your info previously. I have been working this matter through with HMRC and in Dec I received a cheque for issues over the previous number of years. I have had some resolution to the current year but I will still be owed money back from 22/23 come the end of the financial year.
I am in the process of potentially looking to purchase a property and was hoping that you could check my figures below based on your advice before to make sure I am calculating my take home salary correctly. I am also looking to confirm that as a result of my pension contributions that I am below the higher rate tax threshold so that my wife can maintain child benefits.
As you previously identified my pension is relief at source & I am looking to confirm all of this so that HMRC have the accurate info from the start of the year 23/24 and as such that will help to ensure that my monthly tax is correct and I'll hopefully not have to go through the process that I have this year to re-coup tax paid but not due.
Salary for tax - £61,672
Taxable Benefits - £1,890
Total Taxable Income - £63,562
Gross Pension Contribution - £13,500
Income Tax Due (my workings) - £10,240 (based on below)
NICS (my workings) - £4,790
Annual Take Home Salary - £35,842 per annum or £2,987 per month
So my workings as per your previous advice is the following:
Taxable income of £63,562
After deducting personal allowance (£12,570) = £50,992
Basic rate band (£37,700) + relief at source pension contributions (£13,500) = £51,200 @ 20%
Total Tax for the year = £10,240
I hope you don't mind taking a look at this and checking my figures are accurate. You did a great job back in Sept, so think I have finally grasped how it all works but keen to get you to double check.0 -
[Deleted User] said:Bear777 said:Dazed and Confused - thanks again for your info previously. I have been working this matter through with HMRC and in Dec I received a cheque for issues over the previous number of years. I have had some resolution to the current year but I will still be owed money back from 22/23 come the end of the financial year.
I am in the process of potentially looking to purchase a property and was hoping that you could check my figures below based on your advice before to make sure I am calculating my take home salary correctly. I am also looking to confirm that as a result of my pension contributions that I am below the higher rate tax threshold so that my wife can maintain child benefits.
As you previously identified my pension is relief at source & I am looking to confirm all of this so that HMRC have the accurate info from the start of the year 23/24 and as such that will help to ensure that my monthly tax is correct and I'll hopefully not have to go through the process that I have this year to re-coup tax paid but not due.
Salary for tax - £61,672
Taxable Benefits - £1,890
Total Taxable Income - £63,562
Gross Pension Contribution - £13,500
Income Tax Due (my workings) - £10,240 (based on below)
NICS (my workings) - £4,790
Annual Take Home Salary - £35,842 per annum or £2,987 per month
So my workings as per your previous advice is the following:
Taxable income of £63,562
After deducting personal allowance (£12,570) = £50,992
Basic rate band (£37,700) + relief at source pension contributions (£13,500) = £51,200 @ 20%
Total Tax for the year = £10,240
I hope you don't mind taking a look at this and checking my figures are accurate. You did a great job back in Sept, so think I have finally grasped how it all works but keen to get you to double check.
So are my figures right then based on above and it is bringing me in under the 40% tax rate??
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Bear777 said:[Deleted User] said:Bear777 said:Dazed and Confused - thanks again for your info previously. I have been working this matter through with HMRC and in Dec I received a cheque for issues over the previous number of years. I have had some resolution to the current year but I will still be owed money back from 22/23 come the end of the financial year.
I am in the process of potentially looking to purchase a property and was hoping that you could check my figures below based on your advice before to make sure I am calculating my take home salary correctly. I am also looking to confirm that as a result of my pension contributions that I am below the higher rate tax threshold so that my wife can maintain child benefits.
As you previously identified my pension is relief at source & I am looking to confirm all of this so that HMRC have the accurate info from the start of the year 23/24 and as such that will help to ensure that my monthly tax is correct and I'll hopefully not have to go through the process that I have this year to re-coup tax paid but not due.
Salary for tax - £61,672
Taxable Benefits - £1,890
Total Taxable Income - £63,562
Gross Pension Contribution - £13,500
Income Tax Due (my workings) - £10,240 (based on below)
NICS (my workings) - £4,790
Annual Take Home Salary - £35,842 per annum or £2,987 per month
So my workings as per your previous advice is the following:
Taxable income of £63,562
After deducting personal allowance (£12,570) = £50,992
Basic rate band (£37,700) + relief at source pension contributions (£13,500) = £51,200 @ 20%
Total Tax for the year = £10,240
I hope you don't mind taking a look at this and checking my figures are accurate. You did a great job back in Sept, so think I have finally grasped how it all works but keen to get you to double check.
So are my figures right then based on above and it is bringing me in under the 40% tax rate??
And if you had no other taxable income you would also be one eligibile for Marriage Allowance which could possibly save you £252.0
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