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Have I paid to much tax? huh?
deckard3001
Posts: 23 Forumite
in Cutting tax
Hi, this should be a simple one for Tax boffins!
I've recently changed employers and my P45 doesn't look right to me.
My last week there was week 35 and my code is 522L.
My gross to date says £18041.83 and my tax paid is £3014.50.
I thought I had £5225 tax free, Paid 10% on the next £2230 (ie £223) and 22% on the remaining £32 370 (ie £2329.11).
This totals £2552.11 and the online calculators confirm this.
What is amiss to result in a £462.39 difference?
Any advise would be appreciated.
I've recently changed employers and my P45 doesn't look right to me.
My last week there was week 35 and my code is 522L.
My gross to date says £18041.83 and my tax paid is £3014.50.
I thought I had £5225 tax free, Paid 10% on the next £2230 (ie £223) and 22% on the remaining £32 370 (ie £2329.11).
This totals £2552.11 and the online calculators confirm this.
What is amiss to result in a £462.39 difference?
Any advise would be appreciated.
0
Comments
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How much did you earn in your last employer for this year ?I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0
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£18041.83 as above.0
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You'll have only used 32/52 of your tax code though. If you didn't do any more work inthe tax year you'd be due a refund.0
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deckard3001 wrote: »Hi, this should be a simple one for Tax boffins!
I've recently changed employers and my P45 doesn't look right to me.
My last week there was week 35 and my code is 522L.
My gross to date says £18041.83 and my tax paid is £3014.50.
I thought I had £5225 tax free, Paid 10% on the next £2230 (ie £223) and 22% on the remaining £32 370 (ie £2329.11).
This totals £2552.11 and the online calculators confirm this.
What is amiss to result in a £462.39 difference?
Any advise would be appreciated.
The figures you quote are for a full year but the P45 was issued on week 35. This means that for example the tax free figure at week 35 would be £5225 divided by 52 times 35 which is £3516.83. In the same way the bands for different rates of tax have to be adjusted from a year's figures to 35 weeks. If you want to check this find a pay calculator that can be set to work out weekly figures I used one on
http://www.listentotaxman.com/index.php?calc=1&year=2007&age=0&add=0&taxcode=522L&period=52&ingr=515.45&Submit=Calculate
divide your gross by 35 and put this in as a weekly figure, the tax figure you get can then be multiplied by 35 and will be close to what is on your P45.
If your allowances were not apportioned over the year like this you would start each year paying no tax then you would pay 10% of your wages for a few weeks then 22% of your wages and if you were lucky eventually pay 40% untill the end of the tax year.0 -
That makes perfect sense. Thanks.0
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