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  • FIRST POST
    • Mediocrates
    • By Mediocrates 10th Mar 18, 4:23 PM
    • 2Posts
    • 0Thanks
    Mediocrates
    Need help figuring out why I'm paying so much tax
    • #1
    • 10th Mar 18, 4:23 PM
    Need help figuring out why I'm paying so much tax 10th Mar 18 at 4:23 PM
    Signed up for a Personal Tax Account, had a read, understood virtually nothing and am more confused than when I started.

    I have just received my second weekly payslip; here's the details of my pay and tax:

    ---

    Week 1

    37.5 hrs @ 8.50 = 318.75
    5.5 hrs @ 10.63 = 58.47
    Gross pay = 377.22

    Income tax = 75.40
    National Insurance = 26.43
    Total deductions = 101.83

    Net pay = 275.39

    Tax code / Basis = 0T / NC
    NI code = A

    ---

    Week 2

    37.5 hrs @ 8.50 = 318.75
    4.5 hrs @ 10.63 = 47.84
    Gross pay = 366.59

    Income tax = 50.60
    National Insurance = 25.15
    Total deductions = 75.75

    Net pay = 290.84

    Tax code / Basis = 587T / NC
    NI code = A

    ---

    My tax code is now 180TX, so I'm guessing that'll be on Week 3's payslip, unless it changes again.

    Are these deductions a bit high? They seem a bit high.

    Is there any way to work out what my deductions should be or do I just have to phone HMRC?
Page 1
    • telemarks
    • By telemarks 10th Mar 18, 4:29 PM
    • 161 Posts
    • 115 Thanks
    telemarks
    • #2
    • 10th Mar 18, 4:29 PM
    • #2
    • 10th Mar 18, 4:29 PM
    Feeding the numbers into the Tax code calculator here and they come out about right.
    https://www.moneysavingexpert.com/tax-calculator/

    Next week on code 180TX assuming w1 pay gives:
    • Tax Paid 69
    • National Insurance 26

    I guess the real question is "are you on the right tax code now?", which is a Tax Office question. As a T code means:
    When HMRC needs to review some items with the employee
    https://www.gov.uk/employee-tax-codes/letters

    And depending on your final Tax code, you possibly overpaid some tax in week1
    Last edited by telemarks; 10-03-2018 at 4:40 PM.
    • 00ec25
    • By 00ec25 10th Mar 18, 5:41 PM
    • 6,367 Posts
    • 5,879 Thanks
    00ec25
    • #3
    • 10th Mar 18, 5:41 PM
    • #3
    • 10th Mar 18, 5:41 PM
    you have paid exactly the correct amount of tax based on those tax codes

    however, you do not provide enough info to explain why HMRC have placed you on those tax codes, or whether HMRC would be correct if they did so..
    • chrisbur
    • By chrisbur 10th Mar 18, 6:05 PM
    • 2,904 Posts
    • 1,557 Thanks
    chrisbur
    • #4
    • 10th Mar 18, 6:05 PM
    • #4
    • 10th Mar 18, 6:05 PM
    What were you doing before this employment?
    If employed what was your tax code, taxable pay and tax paid?
    • agrinnall
    • By agrinnall 10th Mar 18, 7:28 PM
    • 20,102 Posts
    • 15,823 Thanks
    agrinnall
    • #5
    • 10th Mar 18, 7:28 PM
    • #5
    • 10th Mar 18, 7:28 PM
    Is this a second job? Because it looks to me like that's what HMRC think it is.
    • Mediocrates
    • By Mediocrates 11th Mar 18, 9:34 PM
    • 2 Posts
    • 0 Thanks
    Mediocrates
    • #6
    • 11th Mar 18, 9:34 PM
    • #6
    • 11th Mar 18, 9:34 PM
    Thanks for the help, everyone!

    It looks like it's the wrong tax code, as this is my only job and I'm entitled to 11,500 tax-free income. I guess I have to wait a few more weeks for my P45 to go through before I can call the tax office.
    • chrisbur
    • By chrisbur 11th Mar 18, 10:14 PM
    • 2,904 Posts
    • 1,557 Thanks
    chrisbur
    • #7
    • 11th Mar 18, 10:14 PM
    • #7
    • 11th Mar 18, 10:14 PM
    Have you received your final payment from your last job or is there another payment due?
    • badmemory
    • By badmemory 12th Mar 18, 3:00 AM
    • 1,600 Posts
    • 2,098 Thanks
    badmemory
    • #8
    • 12th Mar 18, 3:00 AM
    • #8
    • 12th Mar 18, 3:00 AM
    Did you receive payment from both old & new job in the same tax period?
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