Income Tax Calculator

anthonysmithmcr

Hi, I’ve just been put on nights at work and my pay has increased quite a lot and I’m trying to work out my pay for 24/25. I know I will go into the 40% tax bracket. 

Will the tax calculator on the site take that into account or will I get a tax bill for the extra I owe next year. 

Sorry to be a nuisance I’m a bit thick when it comes to all this. 

Thanks in advance

badmemory

If your tax code is correct there should be no problem but if you receive child benefit beware.

anthonysmithmcr

badmemory said:

If your tax code is correct there should be no problem but if you receive child benefit beware.

No, I don’t receive child benefit. So is the 40% calculated from my wage monthly?

chrisbur

Assuming you have a cumulative tax code which is the case with most people your tax due to date is calculated every payday.  So for example at month three your taxable pay for the three months is taken.  You get 3/12 th of your tax free allowance 3/12 of you 20% tax allowance and if that is all used you then get 3/12 of your 40% tax allowance and if that is all used you go on to 45% tax.  This calculation gives your tax due to date and from this is deducted the tax you have paid in months one and two which gives your tax figure for month three.
This means that if your earnings fluctuate so that you move into a higher band or into a lower band your tax automatically gets adjusted. 
Only time this does not happen is if you earnings mean you loose some of your personal allowance then a code adjustment would be needed as PAYE cannot handle that. 

EDIT
You mention tax calculators in original post.  Most of these are unreliable if your earnings vary; they usually work on the basis that what you get for a month is 1/12 of your annual salary.  Only one that I know of works in the same way as PAYE and is 100% accurate is here....
https://www.gov.uk/guidance/work-out-an-employees-income-tax