Does anyone know about income tax? - HotUKDeals
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Does anyone know about income tax?

imortal Avatar
5y, 7m agoPosted 5 years, 7 months ago
Does anyone know what i should be left with after tax, NI and pension 3.5% has been deducted? i have done some sums but it doesn't add up.
gross £5059
deductions £1488
I have been left with £3571. I calculate that I should have had about £250-£350 more!
Have i been over taxed?
imortal Avatar
5y, 7m agoPosted 5 years, 7 months ago
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1 Like #1
Ask the Inland Revenue.
#2
I just wondered if anyone knew the answer, before i called them.
cdm22
Ask the Inland Revenue.
#3
It depends on your tax code. Is the gross your income for a month? If so, it's not far away from what you would expect due to 40% tax on the top tier of your earnings. Have you forgotten about that and assumed 20% tax throughout?
[mod][Moderator]#5
is this per month? if it is have you taken the higher tax rates into account and the recently lowered threshold? I believe that there was a ni increase too
#6


They still have last years values and haven't yet put the extra NI on. Still a good tool to use as a rough guide though.
#7
Tax code 747L, I shouldnt pay 40% tax as this is a one off payment.
Lowtrawler
It depends on your tax code. Is the gross your income for a month? If so, it's not far away from what you would expect due to 40% tax on the top tier of your earnings. Have you forgotten about that and assumed 20% tax throughout?
#8
imortal
Tax code 747L, I shouldnt pay 40% tax as this is a one off payment.
Lowtrawler
It depends on your tax code. Is the gross your income for a month? If so, it's not far away from what you would expect due to 40% tax on the top tier of your earnings. Have you forgotten about that and assumed 20% tax throughout?

If it's PAYE, even though it is a one-off payment, you will be subject to 40% tax. Assuming that you earn much less than the higher rate threshold over the remainder of the tax year, you will gradually clawback the higher rate tax. I have done a basic calculation and you have been paid almost exactly what I would have expected.
#9
imortal
Tax code 747L, I shouldnt pay 40% tax as this is a one off payment.
Lowtrawler
It depends on your tax code. Is the gross your income for a month? If so, it's not far away from what you would expect due to 40% tax on the top tier of your earnings. Have you forgotten about that and assumed 20% tax throughout?


Surely it depends on your annual salary then?

http://listentotaxman.com/index.php
#10
Grrrrrrr thank you for the reply, even though what i wanted to hear was that i had been robbed.

Lowtrawler
imortal
Tax code 747L, I shouldnt pay 40% tax as this is a one off payment.
Lowtrawler
It depends on your tax code. Is the gross your income for a month? If so, it's not far away from what you would expect due to 40% tax on the top tier of your earnings. Have you forgotten about that and assumed 20% tax throughout?

If it's PAYE, even though it is a one-off payment, you will be subject to 40% tax. Assuming that you earn much less than the higher rate threshold over the remainder of the tax year, you will gradually clawback the higher rate tax. I have done a basic calculation and you have been paid almost exactly what I would have expected.
#11
seems about right for a 1 off payment, it will even out then an adjustment may be required next year
#12
might be on emergency tax or w/e at the end of the year they recalculate and send a big fat cheque.
#13
looks like you got off litely to me, if your a 40% tax payer that alone would be a deduction of £2023, thats if your earn over the 40% threshold for the tax year.

Edited By: Daytrader on May 25, 2011 22:58

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