Tax has DOUBLED

kerhlkk

Dont know if im posting in the right place ? Anyway ive just received my monthly wage slip & the tax deducted is over twice as much as last month. I know this has been because of the budget & the 10% tax change, but what I want to know is can anything be done about this ? Starting to feel that going to work is pointless to say the least, im doing the same work as last month but have taken home less pay even though my hourly rate has gone up, it just doesnt seem right !

:mad:

laurenzo99

you need to give a bit more info as to how much tax and how much pay....

kerhlkk

Ok here goes, I work 25 hours per week and my rate was 8.50 per hour & paid aprox 47 pounds per month on 850 pounds wage. Now my rate has gone up to 8.92 per hour & my tax is 87 pounds on 892 pounds wage. So last month I brought home 812 pounds & thought that with my rise I would get a better pay this month. Not so I brought home 756 pounds ? So I received a pay rise but have had a fall in my take home pay. I am a single mum of one 6 year old, the reason for working the hours I do is that I dont start until 10am and finish at 3pm allowing me to take my daughter to school & collect her afterwards.

Frugaldom

I agree, it is totally ridiculous! To get a 5% payrise and then take home £56 LESS each month for working the same hours is a disgrace. My DS has just discovered same thing but I suspect he'll fall short of any proposed 'compensation' package because he's only 19. I do relief work, so it could be 20 hours a week or it could be none. Last week I did 6 hours (£42.30 gross) and got £33.90 I know that £4.20 less isn't much but it is still DOUBLE THE TAX and amounts to a couple of hundred pounds per year, which does NOT help when it looks like the household electricity bills could increase by another 35% and food prices are increasing. I daren't even think of what will happen by the time I need to retire because there's certainly no room for making pension payments!

Kerhlkk it would be very interesting to hear how your financial situation would be if you went down the benefits route. Is there any way of finding out? Also, make sure you claim any working tax and child tax credits you are entitled to, plus child care. (Can't believe I'm actually saying that, but it's the state the country seems to be in at the moment.)

nicko33

The calculator at www.listentotaxman.com says

2007-08 monthly gross £920, tax £84.5, NI £53.63
2008-09 monthly gross £966, tax £102.68, NI £56.25

and that if you'd been on the 08-09 money in 07-08, then the tax changes would leave you £5.80/month worse off (a)

I based that on 25 hours * hourly rate * 52 weeks
So I guessed you only worked 48 weeks and have unpaid holiday (?)
That brings it back to £850/month

so..
2007-08 monthly gross £850, tax £68.91, NI £45.83
2008-09 monthly gross £892, tax £87.82, NI £48.07 (£7.29/mth worse(a))

So the £87 tax looks "right"
Was there some benefit you were receiving in 07-08 that has discontinued
which was reducing the £68.91 tax to £47 ?
What was/is your 07-08 and 08-09 tax codes?

Mikeyorks

kerhlkk wrote: »

& the tax deducted is over twice as much as last month.

Then your month 12 tax was out of pattern? On £850pm last year - you should have been paying close to £70pm in tax. Not the £47 you claim.

Killed the rest of my post as Nicko got in before me. But your comparisons are wrong (Code number changed for other than rise in personal allowances? / Month 12 out of pattern with Month 1 etc etc)

Mikeyorks

nykmedia wrote: »

Last week I did 6 hours (£42.30 gross) and got £33.90 I know that £4.20 less isn't much but it is still DOUBLE THE TAX

No tax or NI due on that amount. So you've either got significant deductions in your Coding (2nd job?) .... or there's something material you've left out?

clearvisor

I have a oap pension of just £105-48 weekly
works pension monthly was £276-09 Tax was £55-95 CODE K24
Now this month my pension £262-00 same tax code,
paid more tax, sorry pay slip not to hand,
im told if your over 65 you shouldn't be in K24 banding, has any one any info on this please? thanks

Frugaldom

Mikeyorks wrote: »

No tax or NI due on that amount. So you've either got significant deductions in your Coding (2nd job?) .... or there's something material you've left out?

Apologies, I should have stated that this is classed as second job, hence the reason I get taxed on whatever I earn from it.

Mikeyorks

Puzzled then ..... as you should be paying 20% rather than the 22% from previous. And be (mildly) better off for the same hours?

Mikeyorks

clearvisor wrote: »

I have a oap pension of just £105-48 weekly
works pension monthly was £276-09 Tax was £55-95 CODE K24
Now this month my pension £262-00 same tax code,

Seems to add up to around £8800 per year? If that's your sole income and you're over 65 .... then no tax should be due. As the Chancellor gave you a substantial rise in personal allowances to £9030 wef from 6th April. So - allowances exceed income = no tax due?

A 'K' code indicates that your allowances are negative. K24 isn't a band ... it simply indicates your deductions (normally State Pension) exceed your allowances ... by £240 in this case. And your works payroll people add £240 to your works pension ... to get your overall tax right.

Sounds suspiciously as though the K24 is from last year (allowances £5225 minus State Pension {and a bit of interest?} = minus £240) ...... if you've just recently gone past 65? You should have had an enquiry form (P161) from HMRC. If not, sounds as though they don't have your d.o.b and they haven't given you the increased personal allowance? Check your Coding notice (P2) ... that will tell you. Then contact them.