NI and other tax payments higehr than normal
Discussion
I'm not very good with money or numbers in general but:
I started doing more overtime at work last year. At the start all was good and my pay packet increased nicely. However, more recently I've noticed that my tax deductions are normally more than my overtime pay, leaving me worse off than not doing any overtime at all. I got my bonus last month, and the tax wiped that away.
How does it work? Is it calculated on my base salery, or calculated on a pay-by-pay basis? Or will I get a nice tax refund through at some point? If not, then I may stop working overtime, as it doesnt seem worth coming in at 6am every day and leaving at 6pm every day and not see any benefits.
Happy to provide details, need to be at home to look at pay slips though as they are filed away so cant provide quick detailed answers for now!
I started doing more overtime at work last year. At the start all was good and my pay packet increased nicely. However, more recently I've noticed that my tax deductions are normally more than my overtime pay, leaving me worse off than not doing any overtime at all. I got my bonus last month, and the tax wiped that away.
How does it work? Is it calculated on my base salery, or calculated on a pay-by-pay basis? Or will I get a nice tax refund through at some point? If not, then I may stop working overtime, as it doesnt seem worth coming in at 6am every day and leaving at 6pm every day and not see any benefits.
Happy to provide details, need to be at home to look at pay slips though as they are filed away so cant provide quick detailed answers for now!
Asked my partner to take a picture of my latest payslip.
The code on it is 836L. Earnings last month were 2,081.07 before tax all in, 1,684.55 salery, 396.52 overtime. Total tax was 448.81 if that helps!
Took home 1,632.26 in the end, hence the anoyance of all the early mornings, although the roads are bliss at 6am, maybe thats justification enough?
The code on it is 836L. Earnings last month were 2,081.07 before tax all in, 1,684.55 salery, 396.52 overtime. Total tax was 448.81 if that helps!
Took home 1,632.26 in the end, hence the anoyance of all the early mornings, although the roads are bliss at 6am, maybe thats justification enough?
The next thing is to find out WHY your code is 836L.
The "normal" code for this tax year (2013/14) should be 944L.
944L equates to the standard personal tax allowance of £9,440.
If your code is only 836L, this means HMRC are reducing your tax allowance by £1,080. You need to know why they would do that?
Do you have any Benefits in Kind in your current employment (company car, company van, health insurance etc)
Do you owe arrears of tax from an earlier tax year?
Is the £448.81 amount you mention above tax only or a combination of tax and NI. If it's tax and NI, what is the pure tax element?
The "normal" code for this tax year (2013/14) should be 944L.
944L equates to the standard personal tax allowance of £9,440.
If your code is only 836L, this means HMRC are reducing your tax allowance by £1,080. You need to know why they would do that?
Do you have any Benefits in Kind in your current employment (company car, company van, health insurance etc)
Do you owe arrears of tax from an earlier tax year?
Is the £448.81 amount you mention above tax only or a combination of tax and NI. If it's tax and NI, what is the pure tax element?
Edited by Eric Mc on Tuesday 8th October 11:49
I think a phonecall is in order sometime soon!
However thanks for taking the time to explain it to me in easy terms. To answer your questions:
No benefits, havent driven a pool car for years, dont have a company car, phone or health. I'm now enrolled in the government pension scheme, but not too sure on the details of that though
Havent been informed I owe anything, not 100% though.
Tax was £276.60
NI Contracted was £172.21
Think I'll definatly call them!
Thanks
However thanks for taking the time to explain it to me in easy terms. To answer your questions:
No benefits, havent driven a pool car for years, dont have a company car, phone or health. I'm now enrolled in the government pension scheme, but not too sure on the details of that though
Havent been informed I owe anything, not 100% though.
Tax was £276.60
NI Contracted was £172.21
Think I'll definatly call them!
Thanks
There's a meme for that...
Well, I bought my pay slip into work, found a local rate number so it was a free call on my mobile and....
"Our systems are down at the moment, as we cannot access any tax information. Can you call back next week?" Thought it was odd when my call was answered in 1 ring without any automated system to stumble through in the hope of speaking to someone vaguely human...
Well, I bought my pay slip into work, found a local rate number so it was a free call on my mobile and....
"Our systems are down at the moment, as we cannot access any tax information. Can you call back next week?" Thought it was odd when my call was answered in 1 ring without any automated system to stumble through in the hope of speaking to someone vaguely human...
Seems they are correct! Will put the date in my diary to call them back!
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Pay As You Earn (PAYE)
PAYE (opens in a new window)
Full service available except where indicated below
Wednesday 9 October 16:00 - Tuesday 15 October
Due to a scheduled upgrade;
Submissions made after Wednesday 9 October 16:00 using HMRC Online Returns & Forms, Basic PAYE Tools or commercial software for PAYE End of Year, In Year, Expenses and Benefits; Real Time Information (RTI) may not receive an acknowledgement from HMRC until Tuesday 15 October. Please do not attempt to re-send your submission.
You will not be able to access HMRC Online Returns & Forms between 06.00 Friday 11 October and 06:00 Monday 14 October.
You will be not be able to access our direct debit service from 20:00 on Wednesday 9 October until 07:30 on Monday 14 October.
Please follow the link below for information on any current service issues that may affect you:
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