Is the tax I'm paying correct

JamesN1984

Hi There

I've tried googling but thought I would post here as its blagging my head!

I work in the NHS, doing a part time admin job earning £880 a month after deductions.
my only deduction on this wage slip now its the new financial year is my pension contributions.

I also work on the bank doing 8ish hours a week regular overtime netting (this month anyway) £350 after deductions.

I notice on my bank wage slip, i have been deducted nearly £100 (PAYE £57 and NI £42.87)

I was under the assumption that I wouldn't pay tax until I hit the £12,570 threshold and then I would start paying tax.


I've 

checked my online tax account and they have my payroll number from my main job, but they have no details of my payroll number for my bank shifts. Would this make a difference?

Is the above correct? based on the above, I'm not sure if this is correct or not.




Many Thanks
James

DE_612183

you'd need to check your tax codes but it looks like you are getting your full allowance applied to your NHS job and then paying full tax on the bank one.

The 12570 is pro-rata over 12 months - so approx 1050 a month

JamesN1984

DE_612183 said:

you'd need to check your tax codes but it looks like you are getting your full allowance applied to your NHS job and then paying full tax on the bank one.

The 12570 is pro-rata over 12 months - so approx 1050 a month

This is what I assume has been happening. I have emailed my payroll department. Would i be able to reclaim the tax paid? 

Penguin_

Tax is worked out over the year so your tax free allowance per month is £12570 / 12 = £1047.50.

You have earned £1333.62 this month so you are £286.12 above the threshold for tax.

£286.12 x 20% tax = £57.22 so looks about right.

You can't get payroll to claim this back but if you were to earn less than £1047.50 next month you would potentially get a rebate.

Albermarle

JamesN1984 said:

DE_612183 said:

you'd need to check your tax codes but it looks like you are getting your full allowance applied to your NHS job and then paying full tax on the bank one.

The 12570 is pro-rata over 12 months - so approx 1050 a month

This is what I assume has been happening. I have emailed my payroll department. Would i be able to reclaim the tax paid? 

Once your tax codes are correct, if HMRC owe you some tax they will automatically take less tax in the following months to correct it.
However if it looks like you will pay some tax this tax year based on your current income, you will pay some tax before you have actually earned £12570. As the previous poster said the personal allowance will be divided over 12 months.

Dazed_and_C0nfused

JamesN1984 said:

DE_612183 said:

you'd need to check your tax codes but it looks like you are getting your full allowance applied to your NHS job and then paying full tax on the bank one.

The 12570 is pro-rata over 12 months - so approx 1050 a month

This is what I assume has been happening. I have emailed my payroll department. Would i be able to reclaim the tax paid? 

Why could you reclaim it?

The screenshot you included showed monthly taxable pay of £1333.62.

If you second the standard tax code of 1257L the tax due on that would be £57.

And you have paid £57.

If you earn less than £1,048 in your next pay you would get a refund via your payslip but for April it all looks correct.

You are currently earning £16k/year so can expect to be paying some tax!

JamesN1984

Super thanks all, just wanted to check what I was paying is right. Appreciate the advice!

chrisbur

Just to clarify can you confirm that the details you give for taxable income  ie 1333.62 are the result of combining your two jobs and this figure agrees with the earnings figure on your online tax account.
If that is the case then all would appear to be fine.

PAYE is designed to even out your tax payments through the year as much as is possible.  If you got your full annual allowance at the start of the year then when that ran out you would have 20% deducted from your monthly wage.

JamesN1984

chrisbur said:

Just to clarify can you confirm that the details you give for taxable income  ie 1333.62 are the result of combining your two jobs and this figure agrees with the earnings figure on your online tax account.
If that is the case then all would appear to be fine.

PAYE is designed to even out your tax payments through the year as much as is possible.  If you got your full annual allowance at the start of the year then when that ran out you would have 20% deducted from your monthly wage.

This is what I was questioning, as I now have a new personal allowance of £12,570 or whatever it is but I've started paying tax straight away, but as you say maybe its evening it out throughout the year.

I just thought paying £100 tax on £450 odd earnings seemed a lot especially at the start of the financial year.

eskbanker

JamesN1984 said:
as you say maybe its evening it out throughout the year

No 'maybe' involved - PAYE does allocate your allowance evenly over the year.

JamesN1984 said:
I just thought paying £100 tax on £450 odd earnings seemed a lot especially at the start of the financial year.

You've paid £57 tax on earnings of £1,333.62, plus £42.87 National Insurance, which is separate from income tax....

tightauldgit

JamesN1984 said:

chrisbur said:

Just to clarify can you confirm that the details you give for taxable income  ie 1333.62 are the result of combining your two jobs and this figure agrees with the earnings figure on your online tax account.
If that is the case then all would appear to be fine.

PAYE is designed to even out your tax payments through the year as much as is possible.  If you got your full annual allowance at the start of the year then when that ran out you would have 20% deducted from your monthly wage.

This is what I was questioning, as I now have a new personal allowance of £12,570 or whatever it is but I've started paying tax straight away, but as you say maybe its evening it out throughout the year.

I just thought paying £100 tax on £450 odd earnings seemed a lot especially at the start of the financial year.

No that's not how tax works. You don't pay nothing on the first 12,570 you earn and then full tax on the next lot. Your annual allowance is allocated to each pay period and you pay based on that. At the end of the year if you have over or underpaid they'll adjust it.