It appears I am paying too much tax, what next?

Cashew

Hello

I just checked how much tax I should be paying on this site:
http://www.listentotaxman.com/

and it appears I am paying too much tax.

I get paid £2099 per month gross and pay:
Tax: £419.80
NI Cat A: 181.10
and receive £1498.51 net.

According to that calculator I should be paying:
Tax: £329.22
NI: £180.84
and receive £1,588.94 net.

Thats £90 a month. Does this look like I am paying too much tax or have I missed something?

If I am paying too much, what can I do?

Thanks.

CLAPTON

and you tax code is....?

LisaContractorUmbrella

Your tax code denotes how much you can earn in a year before you pay tax. The standard code this year is 543L which equates to £5435 per year. However, if your tax code is lower than this your tax free pay will be lower and therefore the tax you pay will be higher.

Ike1

Hi - my tax code is correct at 543L but the "Listen to Taxman" calculator quotes my monthly wage at being £90 higher than the amount that I actually receive each month.

I've put in the correct deductions for pension etc. What's going on? Is the site wrong or am I being underpaid?

Ike

CLAPTON

if you post up all the figures on your payslip then it might be possible to see... maybe you underpaid tax last month

Cashew

CLAPTON wrote: »

and you tax code is....?

Sorry, my tax code is BR 0

BR
This code is an abbreviation of "Basic Rate". It is applied by HMRC to employees who are liable to pay income tax at the basic rate, i.e. 20%. You may be given this tax code if you have two jobs - in one of the jobs you have a suffix code so that you receive your "tax-free pay"; in the other you must pay tax at 20% on all of the earnings. If you have two pensions, the state pension and an occupational pension, this code may be used to deduct tax from your occupational pension.

Your employer is also allowed to allocate this code for new employees in certain circumstances if HMRC has not yet provided an official tax code.

If you have this code, your employer is required to deduct tax at 20% from all of your earnings. You do not have any "tax-free pay".

Example: Your weekly earnings are £300. Your employer deducts £60 tax, i.e. 20% of £300.

http://www.paypershop.com/faq/taxmean.html

I only have one job, does it look like I am being taxed incorrectly?

Thanks

fengirl_2

if you are on BR and this is your only job, then you are on the wrong tax code. Ask your employer for a form P46, sign to say this is your only job and he should put you on 543L cumulative which will mean a refund will come in your next pay packet.

Cashew

Thanks.

Have written a letter to my tax office and send a copy of last years p60 and a copy of a couple of pay slips.

Hopefully I will get the rebate soon!

molly1973jade

Cashew ring the tax office also for this year to get your code sorted out for the 08/09 year that is if your still on br and with the same employer as it could take a couple of months to deal with you repayment claim for the previous year