Paying 50% income tax!

24

Comments

  • chrisbur
    chrisbur Posts: 4,048 Forumite
    Name Dropper First Anniversary First Post
    PawelKrk wrote: »
    I see many question, so I will answer in order. Im working for 24.7 Recruitment Services Agency, I'm not sure if its a big company or not. The amount I get paid is correct.

    1 week:
    Taxable income - 330
    Income tax paid - 165
    National insurance paid - 20.16
    I get paid 144.84

    2 week:
    Taxable income - 281.88
    Income tax paid - 140.94
    National insurance paid - 14.38
    I get paid 126.56

    Im not sure if my company used correct tax code, I have updated it in HMRC about 5 days before I should get first payslip in new tax year. The main office of company is outside London, we have an agent who is coming to our warehouse from time to time but when i talked to him he seemed to didnt know anything, or he just didnt care. Today I called to the office and they promised to send me all payslips by email and to sort out the income tax problem. The only thing they send to me so far is a Pension letter, so I will update this thread when I get any information. Thank You for all answers!

    The most important items are unfortunately missing. It is the tax code and/or the taxable pay/tax paid to date that should show the problem. Can you ask your employer to supply these details for each week?
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    HMRC shows that tax code for 18-19 tax year is 1185L. Estimated taxable income- 15.500. I have to wait for more information. The strange thing is that on my first two payments (previous tax year) when I had BR emergency tax code for sure, I paid "only" 60 pounds weekly (20%). After that it jumped to 50%.
  • dori2o
    dori2o Posts: 8,150 Forumite
    First Anniversary First Post
    The only way you can be paying 50% tax, as has been said, is if the employer is operating a large K code.

    When did you call HMRC. You say in four first post it was when the new tax year started, that was only last week. If thats the case its entirely possible that the 1185L code didnt reach your employer in time for this weeks payroll run.

    It generally takes around 72 hours from the date the code was issued to when your employer receives the code.

    Your employer can run their payroll anything upto a week before your actual payment date.

    When possible contact your employer and ask if they have received an updated tax code for this tax year. Also ask what tax code they have been using.
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
    [/SIZE]
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    Thank You I will inform on Monday when I call the office again.
  • chrisbur
    chrisbur Posts: 4,048 Forumite
    Name Dropper First Anniversary First Post
    dori2o wrote: »
    The only way you can be paying 50% tax, as has been said, is if the employer is operating a large K code.

    Also a possibility that some figures have been wrongly added into the taxable pay to date total, which is why I am suggesting the OP gets this figure as well as the tax code used.
  • xylophone
    xylophone Posts: 44,339 Forumite
    Name Dropper First Anniversary First Post
    https://24-7recruitment.net/job/warehouse-operatives-18/


    Benefits of working with 24-7 Recruitment include:
    28 days accrued annual leave per annum (inclusive of statutory holidays PAYE only)
    Online payslips
    Excellent pay rates
    Work wear and uniform
    On-going assignments
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    Today I recieved all payslips. First thing I noticed is that these payslips looks like from previous tax year with old tax code.

    1 payslip - 330 pounds
    06.04.2018
    Tax code 1150
    Deductions:
    165 tax
    20.16 Ni

    Totals this period:
    Gross:330
    Gross for tax:330
    Payments:330
    Deductions:0
    Additions:0

    Totals year to date:
    Gross:15.235.00
    Taxable gross: 15.235.00
    Tax paid: 1 330.80
    Ni paid: 0.00
    Pension: 0.00
    Tax relief: 0.00

    2 payslip - 281.88 pounds - 13.04.2018
    Tax code 1150L
    Deductions:
    Tax 140.94
    Ni 14.38
    Totals this period:
    Gross 281.88
    Gross for tax 281.88
    Payments 281.88
    Deductions 0.00
    Additions 0.00

    Total year to date:
    Gross: 15.516.88
    Taxable gross: 15.516.88
    Tax paid: 1.471.74
    Ni paid: 0.00
    Pension: 0.00
    Tax relief 0.00


    What do you think about it?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    The payslips make no sense, the YTD figures cannot be right, so you need to go back to your employer and ask them to issue you with correct information. It looks to me like their payroll system is a complete mess so it may take a while to sort out.



    One question for you, are other employees also having problems with their pay and payslips?
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    Some people didnt recieve last 2-3 payslips aswell, but I didnt heard anyone complaining about 50% income tax so i suppose its only in my case. Maybe they will sort it out until Wednesday when we should get new payslips.
  • molerat
    molerat Posts: 31,816 Forumite
    Name Dropper Photogenic First Post First Anniversary
    edited 16 April 2018 at 7:07PM
    You need to with your employer and tell them that their errors are causing you hardship. They have overtaxed you in the region of £274 over 2 weeks, managing payroll in that manner is simply unacceptable. Strangely they have managed to get the NI correct for 2018 rates.
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