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    Does anyone know about income tax?

    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?

    13 Comments

    Ask the Inland Revenue.

    Original Poster

    I just wondered if anyone knew the answer, before i called them.

    cdm22

    Ask the Inland Revenue.


    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 & Ed

    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

    pink-ka

    try this http://www.thesalarycalculator.co.uk/salary.php



    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.

    Original Poster

    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 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?


    imortal

    Tax code 747L, I shouldnt pay 40% tax as this is a one off payment.



    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.

    imortal

    Tax code 747L, I shouldnt pay 40% tax as this is a one off payment.



    Surely it depends on your annual salary then?

    listentotaxman.com/ind…php

    Original Poster

    Grrrrrrr thank you for the reply, even though what i wanted to hear was that i had been robbed.

    Lowtrawler

    If it's PAYE, even though it is a one-off payment, you will be subject to … 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.


    seems about right for a 1 off payment, it will even out then an adjustment may be required next year

    might be on emergency tax or w/e at the end of the year they recalculate and send a big fat cheque.

    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" 25th May 2011
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