Pay difference Tax?

Dazed_and_C0nfused

la531983 said:

LightKnow said:

While I look into it and find my P60 

I want ask this too, So the tax band your in is based on base salary, but I wouldn't of thought doing overtime would impact this , if so say , my overtime some how make my total salary over 30k does that mean I be under higher tax banner, even tho it's not my base salary?

So here the thing if yearly salary is 25k e.g the difference on HMRC site shouldnt be like 6k extra  different that absurd, there no way I can work that much 

You pay tax based on the amount you earn in any given tax period (monthly if paid monthly). Going over £30k wont trigger a change of tax percentage anyway, that wouldnt happen until just over £50k (at time of typing)

Basic rate	£12,571 to £50,270	20%
Higher rate	£50,271 to £125,140	40%

I don't think the op has said what tax code they are on so it could be a bit more complicated if they are Scottish resident for tax purposes.

la531983

Dazed_and_C0nfused said:

la531983 said:

LightKnow said:

While I look into it and find my P60 

I want ask this too, So the tax band your in is based on base salary, but I wouldn't of thought doing overtime would impact this , if so say , my overtime some how make my total salary over 30k does that mean I be under higher tax banner, even tho it's not my base salary?

So here the thing if yearly salary is 25k e.g the difference on HMRC site shouldnt be like 6k extra  different that absurd, there no way I can work that much 

You pay tax based on the amount you earn in any given tax period (monthly if paid monthly). Going over £30k wont trigger a change of tax percentage anyway, that wouldnt happen until just over £50k (at time of typing)

Basic rate	£12,571 to £50,270	20%
Higher rate	£50,271 to £125,140	40%

I don't think the op has said what tax code they are on so it could be a bit more complicated if they are Scottish resident for tax purposes.

True, hes talking about a wage range of 25-just over 30k though, so I am assuming hes a basic rate taxpayer (in England/Wales/NI) on a normal tax code. Until he gives more details....

General_Grant

I don't think the OP understands that HMRC aren't really interested in their "base" salary but in what their taxable earnings are, whether theiy earned £10K as contracted salary and then £25K overtime, for example but rather £35K in total. (I'm ignoring pension deductions for simplicity.)

LightKnow

Sorry got tax band mixed up - yes my yearly salary is under 30k 

I do pay into works pension and share scheme 

My tax code is 1257L

Apologies if I don't know , genuinely thought Tax was more oriented as basic pay then take into account over time you know with simple breakdown 

I don't trust them even the slightest or there calculation. As every job I worked, they always managed to over tax me by decent chunk. Am working my A. SS of just so I can help my parents. I don't want them to pulling random figures with naff tax amounts . I don't have the mental brain power to be arguing with them like in past

400ixl

Your tax is based on your taxable income for the period, so not just your base. Your overtime is not tax free.

May explain why you thought you were getting over taxed when you possibly weren't.

chrisbur

LightKnow said:

My tax code is 1257L

 As every job I worked, they always managed to over tax me by decent chunk. 

Your tax deductions can be checked if you wish to put details of your latest payslip on here.
Taxable gross  ( If your pension is deducted before tax is calculated you will have two gross figure one lower than the other it is this lower figure that is required. )
Tax paid
Taxable gross to date
Tax paid to date
Week or month number (or date of payment advising if paid weekly every two weeks every four weeks or monthly)


This will allow a check that PAYE is being operated correctly by your employer though actual tax due may be affected by other things for example taxable interest on savings.  Have you had anything from HMRC regarding tax due on anything other than your job?

la531983

LightKnow said:

I don't trust them even the slightest or there calculation. As every job I worked, they always managed to over tax me by decent chunk. 

With all due respect I dont think you have a full understanding of how tax deductions work, as said whack a payslip up, or at least all the data from it typed into here, and someone can tell you if it looks right.

EnPointe

LightKnow said:

Sorry got tax band mixed up - yes my yearly salary is under 30k 

I do pay into works pension and share scheme 

My tax code is 1257L

Apologies if I don't know , genuinely thought Tax was more oriented as basic pay then take into account over time you know with simple breakdown 

I don't trust them even the slightest or there calculation. As every job I worked, they always managed to over tax me by decent chunk. Am working my A. SS of just so I can help my parents. I don't want them to pulling random figures with naff tax amounts . I don't have the mental brain power to be arguing with them like in past

On what basis  do you believe that you are over taxed ?

Do you  understand what a tax code is ?  and how  it operates ?

Do you understand what  the employee NI  contribution is ?

Do you understand what  elements of  your overall pay and compensation package  are taxable  and what  items  may be deducted at source ( i.e. before tax )  , potentially  reducing your tax and employee NI  contributions. 

For someone earning the  kinds of sums you  mention  it would be typical for your take home pay to be approximately 66- 70 %  of your gross pay  after the deduction of income tax, employee  NI and Employee Pension contributions (assuming typical levels of employee  pension contribution) . Paying into  sharesave etc would  further reduce  your take home pay with the promise of the  shares growth against  getting as as cash  ( hedging that the  price at maturity will be considerably higher than price today  and/or  the 'strike price' of the scheme )  or  if not that saved cash    

https://www.gov.uk/understanding-your-pay

https://barclayslifeskills.com/working-life/confidence-with-money/understanding-your-payslip/

and while  this last link refers  to NHS ESR payslips ( which the vastest majority of  currently employed NHS staff receive)    it  also explains  items which are common to ALL  UK payslips 

https://my.esr.nhs.uk/dashboard/documents/22528/656514626/Understanding+your+payslip.pdf/3b873efb-2f57-ffb8-af54-25d4af3b7e16?t=1663085464155