Bi Weekly Pay - Tax Query

SK220385

Hi Guys,

I am new to the board, been reading for about a year and receive Martin's weekly email but never actually posted anything!

I am due to have a meeting this week to discuss a new job and need to understand my tax situation, I have tried to calculate my tax and what my net pay should be but I am still confused and wonder if I get taxed more as im paid every 2 weeks?

My current salary is £22,000 p.a, using the tax calculator here - www.listentotaxman.com with a tax code of 522L my salary works out to be-

Net after tax

Annual Monthly Weekly

£16,728 £1394,00 £321.69

Now as I get paid bi-weekly I would expect to take home 2 x my weekly pay which works out to £643.38, this is my take home after tax. I am confused though by the fact that surely my monthly figure after tax should be able to be divided by 2 which would be £697, so where am i losing this £53?

Also I have read that 522L can also be used as a Emergency tax code (http://www.hmrc.gov.uk/employers/rates_and_limits.htm#1c) but also can be the correct code if your under £65 and not married as I am, perhaps this is the reason Im losing this money?

Any help appriciated!

Thanks

SK

mrkbrrws

SK220385 wrote: »

Now as I get paid bi-weekly I would expect to take home 2 x my weekly pay which works out to £643.38, this is my take home after tax. I am confused though by the fact that surely my monthly figure after tax should be able to be divided by 2 which would be £697, so where am i losing this £53?

There are 4.33 weeks in a month, not 4. (52/12 = 4.33)

SK220385 wrote: »

Also I have read that 522L can also be used as a Emergency tax code (http://www.hmrc.gov.uk/employers/rates_and_limits.htm#1c) but also can be the correct code if your under £65 and not married as I am, perhaps this is the reason Im losing this money?

If your tax code is simply "522L" then this is the correct standard personal allowance code for under 65's. The emergency code looks something like "522LW1" or "522LM1".

noh

No you will not pay more tax if you are paid evey two weeks.
The reason that there is a difference between the monthly figure divided by two and the fortnightly figure is because a month is longer than four weeks.
There are 12 monthly periods in the year or 26 fortnightly periods.
So if paid monthly you would get 12 x £1394.00 = £16728.00
If paid fortnightly you would get 26 x £643.38 = £16727.88

Nigel

SK220385

Feel a bit silly now, that was quite obvious wasnt it?

Thanks for clearing that up, I believe I am on 22% tax, at what point (salary wise) does your tax amount go up, where can I find the bandings?

Cheers

noh

SK220385 wrote: »

Feel a bit silly now, that was quite obvious wasnt it?

Thanks for clearing that up, I believe I am on 22% tax, at what point (salary wise) does your tax amount go up, where can I find the bandings?

Cheers

http://www.hmrc.gov.uk/rates/it.htm