my income tax allowance

Trow

Blinko - look at your payslips - if they have the code (tax code) 474L then your tax free allowance is already taken into account.  If for any reason you see BR instead then you are not receiving your tax free allowance.  You may have a different code that is a combination of (usually) 3 numbers then a letter, or a letter then 3 numbers.  If it is BR or something else other than 474L, post here and I am sure that I or someone else can help you further.

blinko

hi thanks yep thats correct my tax code is 474L but when i worked out my tax it was actually 17.5%
eg i earned 949 this month and it went down to 787 does this mean im getting my taxed at a lower rate by accident or is this due to them spreading out my allowance of 4165 over the year ?

thanks for your help aswell my payslip looks like this
tax period 7, tax code 474L 0, NI CAT - A

Total pay £971.68
(tax this period 106.51)
(NI Ees 63.43)
total deductions - 169.94

Taxable 6857.89
Tax 757.88
NI Ees 450.19 (can anyone explain whats the difference between these two NI thingys???)
NI Ers 523.87

net pay 801.74

sarahlouise210

NI ees is the amount of national insurance you pay as an employee... NI ers is the national insurance your employer has to contribute for you

Rafter

Calculations all look correct.

You might find this 'payslip checker' from Ditita userful:

http://yahoo.digita.com/taxcentral/home/employment/payslipcalculator/default.asp

Your effective tax rate is made up of a number of different things.

You pay national insurance on the total pay.

Income tax is then calculated on your total pay as well.

You pay nothing on the first £4,745 in any year (£385 per month). You then pay 10% tax on the next £1960 (£163 per month) and you then pay 22% (standard rate income tax) on the balance up to the higher earnings limit when you start paying 40% tax.

Checking your payslip yourself isn't easy as a result!

Good luck with college and getting a better job though and tell your friend to go and talk to citizens advise or local social security office so she is claiming all the benefits and tax credits to which she is entitled.

R.

blinko

thanks for all your help guys much apprecciated