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PAYE increased about £30 from last month

135

Comments

  • chrisbur
    chrisbur Posts: 4,295 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I am assuming that the code of 1160L was being used at least from month 7
    If month 7 code was different this could be the explanation depending on the code.
    For month 8 take the taxable pay to date figure from your payslip and deduct 32872
    For month 9 take the taxable pay to date figure from your payslip and deduct 36981
    The figure that you are deducting is the point for that month ( give or take ) when 40% tax would be due.
    Either or both answers might be negative.
    If both answers are the same or close then this check is not going to give the answer.
    If the figure for 9 is higher than the figure for 8 then you are crossing into the 40% tax band and more of your earnings are having 40% tax deducted.
    If the figure for 8 is higher than the figure for 9 then you are crossing out of the 40% tax band or at least getting close to crossing out of it.  What happens when you have been paying 40% tax and your earnings result in you moving towards the point where 40% tax is not due is that gradually some 40% tax is converted to 20% tax so lowering the tax due figure.  When there is no more 40% tax to convert to 20% tax this reduction stops and tax appears to go up, sometimes it takes a couple of paydays to adjust fully.


  • collinsca
    collinsca Posts: 256 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 22 January 2024 at 3:51PM
    1160L on both?
    Yes, 1160L on both
  • This is now page 3 of this thread and it has already been explained why this has happened.

    Unless you are prepared to provide the information @chrisbur requested in one of the first replies you will never get the specifics you want.
  • I had said my payslip doesnt align to the headings he gave so i am struggling to work out the data... so it's not a case of being unprepared to do so.

    @chrisbur - I will use your last post to calculate - many thanks for your time and help on this.
  • chrisbur
    chrisbur Posts: 4,295 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 22 January 2024 at 3:51PM
    collinsca said:
    1160L on both?
    Yes, 1160L on both
    Was it also 1160L for month 7
    If not what was the code for month 7


  • collinsca
    collinsca Posts: 256 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 22 January 2024 at 3:51PM
    chrisbur said:
    collinsca said:
    1160L on both?
    Yes, 1160L on both
    Was it also 1160L for month 7
    If not what was the code for month 7


    Yes it is same for month 7 :)
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 22 December 2023 at 3:58PM
    From the very first post - ‘about £49k’. The tax code is 1160L, not 1257L. 

    This would mean that any taxable earnings above 49309 would be taxable at 40% - not the normal 50270. The probability is that the op is a higher rate taxpayer 

    I suspect that there has been a salary increase since April.

    At month 9 the projected salary for the tax year has exceeded 49309 for the first time meaning that £150 is liable at 40% and not 20% - a difference of £30. 

    Can the op confirm that his annual salary exceeds £49309 per annum. (My calculations make the ‘taxable salary to date’ figure £37131 at Month 9)?

    Any thoughts chrisbur?
  • chrisbur
    chrisbur Posts: 4,295 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 22 January 2024 at 3:51PM
    From the very first post - ‘about £49k’. The tax code is 1160L, not 1257L. 

    This would mean that any taxable earnings above 49309 would be taxable at 40% - not the normal 50270. The probability is that the op is a higher rate taxpayer 

    I suspect that there has been a salary increase since April.

    At month 9 the projected salary for the tax year has exceeded 49309 for the first time meaning that £150 is liable at 40% and not 20% - a difference of £30. 

    Can the op confirm that his annual salary exceeds £49309 per annum. (My calculations make the ‘taxable salary to date’ figure £37131 at Month 9)?

    Any thoughts chrisbur?
    Yes my feeling is that the OP is almost certainly close to the point of the change over from 20% to 40% though unsure if they are crossing over ( month 9 has higher tax ) or coming back (month 8 has lower tax as some 40% tax converted to 20% but less or none left to affect month 9 ).  Hence my post which hopefully should allow them to check for this themselves. 

  • earlier in the year i was on 46,126.00
    then got a payrise of 2998.00 around July 
    to take it to 49,124.00

    thank you

    i will do the calculation posted by chrisbur over the next few days
  • collinsca said:
    earlier in the year i was on 46,126.00
    then got a payrise of 2998.00 around July 
    to take it to 49,124.00

    thank you

    i will do the calculation posted by chrisbur over the next few days
    There would have have been additional payments - perhaps a bonus since April? 
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