Another Tax Question

willz_2

This is my first post so I'll start by saying hello everyone first, Hello:hello:

So i got my payslip this month and my tax code has changed from 522L to 543L which i understand is normal, but should i have been taxed and extra £42 over last month? I'm only on minimum wages and thats quite alot to lose when your trying to pay stuff off (2 more months and im completely debt free, yay) I earn only £10750 PA so is this normal?

cheers

will

lagi

Hello too...

I am in a similar position, previous code was 525L now 546L and i am paying about £100 more tax.

Single man who earns about £25K i thought i would have been slightly better off.
Someone please tell me they have made a mistake!!!

jem16

willz wrote: »

This is my first post so I'll start by saying hello everyone first, Hello:hello:

Hello and welcome to the boards.

So i got my payslip this month and my tax code has changed from 522L to 543L which i understand is normal,

Yes it is normal. Your tax-free allowance has gone from £5225 last year to £5435 this year.

but should i have been taxed and extra £42 over last month? I'm only on minimum wages and thats quite alot to lose when your trying to pay stuff off (2 more months and im completely debt free, yay) I earn only £10750 PA so is this normal?

This is to do with the abolition of the 10% tax band. You are now paying 20% on all taxable income above your personal allowance whereas last year you had 10% on the first £2130 above the £5225.

It does sound rather a big difference though.

jem16

lagi wrote: »

Hello too...

I am in a similar position, previous code was 525L now 546L and i am paying about £100 more tax.

Single man who earns about £25K i thought i would have been slightly better off.
Someone please tell me they have made a mistake!!!

At £25k you should be better off by around £16pm.

Has anything else changed on this month's pay?

terryw

jem16 wrote: »

Hello and welcome to the boards.



Yes it is normal. Your tax-free allowance has gone from £5225 last year to £5435 this year.



This is to do with the abolition of the 10% tax band. You are now paying 20% on all taxable income above your personal allowance whereas last year you had 10% on the first £2130 above the £5225.

It does sound rather a big difference though.

Yeah strikes me too as a big difference. Anyone got any tax tables handy to check this? I know the low paid have been hit, but I did not thin someone on £25000 would lose out as well

terryw

lagi

Great to be getting some feedback so quick, thanks.

Am looking at 2 consecutive wages slips, have earnt about £30 extra than last months but tax has risen by £120 more and N.I. by 40p.

Overall and getting an extra £30 too i am down by £98.49.

jem16

terryw wrote: »

Yeah strikes me too as a big difference. Anyone got any tax tables handy to check this? I know the low paid have been hit, but I did not thin someone on £25000 would lose out as well

terryw

http://www.listentotaxman.com/

This calculator puts someone on £25k as £16 approx better off.

jem16

lagi wrote: »

Great to be getting some feedback so quick, thanks.

Am looking at 2 consecutive wages slips, have earnt about £30 extra than last months but tax has risen by £120 more and N.I. by 40p.

Overall and getting an extra £30 too i am down by £98.49.

Perhaps you had a tax rebate last month? you certainly should not be paying £120 more in tax.

Try putting in some figures into this calculator for last month and this month and see what you get.


http://www.listentotaxman.com/

lagi

put figures in taxman and seems about right, tried again with previous wage slips and it was under.......

Wouldn't have thought i have been underpaying all the time, if so i want it back again.

jem16

lagi wrote: »

put figures in taxman and seems about right, tried again with previous wage slips and it was under.......

Perhaps you had overpaid tax at some point during the year and you were now getting it back? Did you change jobs during the last tax year? Or did you just start working last year but not for the whole year?

Wouldn't have thought i have been underpaying all the time, if so i want it back again.

As it's a new tax year you are likely to be paying to correct amount now.

lagi

jem16 wrote: »

Did you change jobs during the last tax year?

Yes i did, looks like i may need to change again.