My PAYE tax has gone up quite a bit recently. Why?

11gaz11

Hi

I'm hoping someone can help me with this. So I am paid weekly and I have noticed that the last couple of weeks I have been paid my tax has shot up. I will post some figures and hopefully someone can help me and let me know why and if this will now continue at this rate from now on.

My tax code is: 1257L

So these are the figures for the last 5 payslips I have had:

21st March
Gross pay for PAYE £1,170.75
Deductions for this period PAYE £185.80
(Gross Earnings Year-to-date £47,767.25)

28th March
Gross pay for PAYE £1,244.84
Deductions for this period PAYE £200.60
(Gross Earnings Year-to-date £49,012.09)

4th April
Gross pay for PAYE £772.70
Deductions for this period PAYE £106.00
(Gross Earnings Year-to-date £49,784.79)

11th April
Gross pay for PAYE £1,311.75
Deductions for this period PAYE £282.60
(Gross Earnings Year-to-date £1,311.75)

18th April
Gross pay for PAYE £1,277.50
Deductions for this period PAYE £273.40
(Gross Earnings Year-to-date £2,589.29)

So as you can see from the figures on my last couple of wage slips, the tax has shot up a good £70+ compared to the last couple of wage slips in March even though the Gross pay for PAYE are all pretty similar amounts (give or take a few £'s).

Can someone explain to me in simple terms why this has gone up? I am assuming it is to do with the £50,000 threshold. My pay does vary i have hammered the overtime this last 6 months or so. Does that mean i will now pay this higher tax every week or will it level out should my weekly pay drop (e.g. i don't hammer the overtime as much)??? 

Hopefully I've put all the figures needed for someone to clear this up for me. If not let me know and i will add further info if needed.

Just want some clarification that's all as I've never had this happen before although I've not earned as much as i have before over this last 6 months either.

Thanks in advance to anyone that can give some clarification

Nomunnofun1

It will level out. Currently, with the two payslips to date, you are on course to earn £67314 in this tax year. This means that over £17000  would be taxed at 40% whereas you were a basic rate taxpayer in 2024/25. 

Because of that, no income in the first three payslips was chargeable at 40%. The payslip dated 11th April, however, was taxed:

£241.73 tax free
£725 at 20% - £145
£344 at 40% - £137.60

Total tax £282.60

El_Torro

Basically the PAYE system is expecting you to earn this much every week for the rest of the tax year, this is how it is designed to work. If you do less overtime in future weeks then things should balance out and you will be charged less tax to compensate. 

11gaz11

Nomunnofun1 said:

It will level out. Currently, with the two payslips to date, you are on course to earn £67314 in this tax year. This means that over £17000  would be taxed at 40% whereas you were a basic rate taxpayer in 2024/25. 

Ok that makes sense and kin of how i thought. How/when does it even out though? That's the bit i can't get my head around. Say i earned my basic rate of about £550 for the next month, would i still be paying the 40% against that each week?

Thanks for your input and help though

11gaz11

Tax code from this week is 1231L

Last week (and before that) it was 1257L

11gaz11

El_Torro said:

Basically the PAYE system is expecting you to earn this much every week for the rest of the tax year, this is how it is designed to work. If you do less overtime in future weeks then things should balance out and you will be charged less tax to compensate. 

Makes absolute sense. Never been in this situation before so wasn't 100% sure how all this worked. Thanks for clearing things up.

Nomunnofun1

11gaz11 said:

Tax code from this week is 1231L

Last week (and before that) it was 1257L

I finished my post after you replied - hope it helps.

Nomunnofun1

11gaz11 said:

Nomunnofun1 said:

It will level out. Currently, with the two payslips to date, you are on course to earn £67314 in this tax year. This means that over £17000  would be taxed at 40% whereas you were a basic rate taxpayer in 2024/25. 

Ok that makes sense and kin of how i thought. How/when does it even out though? That's the bit i can't get my head around. Say i earned my basic rate of about £550 for the next month, would i still be paying the 40% against that each week?

Thanks for your input and help though

If you earned £550 on payment dated 18th April you would have earned at total of £3139. 

At week 3 total tax due on that income would be

£725 tax free
£2175 at 20% - £435
£239 at 40% - £95.60

Total due to- £530.60
Paid up to week 2 - £558

You would pay no tax on the £550 and receive a refund of £27.40.

11gaz11

Nomunnofun1 said:

It will level out. Currently, with the two payslips to date, you are on course to earn £67314 in this tax year. This means that over £17000  would be taxed at 40% whereas you were a basic rate taxpayer in 2024/25. 

Because of that, no income in the first three payslips was chargeable at 40%. The payslip dated 11th April, however, was taxed:

£241.73 tax free
£725 at 20% - £145
£344 at 40% - £137.60

Total tax £282.60

Perfect. Thanks you so much for explaining.

11gaz11

Makes total sense now it's been broken down for me. Thanks for all the help, really appreciate it.

Nomunnofun1

11gaz11 said:

Nomunnofun1 said:

It will level out. Currently, with the two payslips to date, you are on course to earn £67314 in this tax year. This means that over £17000  would be taxed at 40% whereas you were a basic rate taxpayer in 2024/25. 

Because of that, no income in the first three payslips was chargeable at 40%. The payslip dated 11th April, however, was taxed:

£241.73 tax free
£725 at 20% - £145
£344 at 40% - £137.60

Total tax £282.60

Perfect. Thanks you so much for explaining.

I have also answered your other question regarding next payment of £550 - just not fast at typing on an iPhone!