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Paying to much tax?

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Found 16th Apr 2015
Am I paying the correct amount of tax? This is my first payslip for this financial year, I have never worked employed before, but from my Gross income of 1932.89, I have the following deductions: Tax: 223.20; NI 157.55; Start up Pens: 11.87
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CristianC89

Am I paying the correct amount of tax?



Jesus wept.
no - you should pay more

so should we all if we want the service levels we desire !

EliTom
No, you need to pay more.
sorry guys, I wanted to upload my payslip, but didn't work, I will edit it now
yes your income tax is bang on correct

EliTom
http://s10.postimg.org/k4bhdieqd/Payslip_001_Copy.jpg
Edited by: "CristianC89" 16th Apr 2015
I'm afraid that looks about right
Monthly salary multiplied by twelve, less £10k ish tax free.
Balance at 20%.
Should be there or thereabouts and assumes your tax code is something like 1060L.
Edited by: "willhay555" 16th Apr 2015
Tax code should be correct: 1060L but I don't know what CUM stands for.
NI is what percentage from what? Gross income of after tax free?
Btw, I am paid 4 weekly, not monthly
CristianC89

Btw, I am paid 4 weekly, not monthly



exactly - that was my calc - you are 30p short - i.e. you owe 30p

EliTom
NI is calculated on gross earnings.
HMRC has a useful app to tell you what ddt' to expect.
Google listen to the tax man and put the figures in. Then it'll tell you how much a month and year etc
So NI is 8% from my Gross Income?
I used the HMRC app and listen to the tax man website, but the problem is I don't earn this income all the time. My contract is 39 hours per week at 7.27 rate. This month I had overtime, plus one week paid holiday and etc.
NI is paid at 12% over and above £620 per 4 week period, i.e. you earn £1000, you have £620 NI free, so you pay 12% on the difference of £380, which is 45.60
Your normal pay, based on the 39hrs @ 7.27 would be £283.53 pay, £15.94 tax, £15.42 tax, with a Net Pay of £252.17 per week (or £1008.68 per 4 weeks)
As njpugh said go to listentotaxman.com enter your gross salary and tax code and it will tell you exactly what tax & NI you should be paying

Thank you

roxington

and

willhay555

! Figured out how it works and it is correct.
The salary calculator would not be very useful as I said, I don't earn this amount every 4 weeks. I wanted to know how they calculated NI and Tax for these 4 weeks
abviously you may be on the emergency tax like I was. give your employer or tax office a ring. same happened to me when I started work .

I think it's awesome you earn nearly £2,000 a month, what do you do??
sofiasar

abviously you may be on the emergency tax like I was. give your employer … abviously you may be on the emergency tax like I was. give your employer or tax office a ring. same happened to me when I started work .I think it's awesome you earn nearly £2,000 a month, what do you do??



He makes £7.27 an hour the rest is overtime etc. Hardly a well paid job!
[quote=CristianC89][url=http://postimg.org/image/k4bhdieqd/][img]s10.postimg.org/k4b…jpg
I can confirm you're paying the correct amount of tax - your tax code is correct being 1060L meaning you can earn £10,600 per year before paying tax (split this over 12 months and that means the first £883 your earn per month is tax free). You'll then pay tax at 20% on the balance. CUM stands for cumulative - which basically means it has been calculated from the start of the tax year and works on a cumulative basis for the remainder of the year which is ideally what you want, means you likely won't end up with an overpayment/underpayment at the end of the year (the other possibility is that it shows as WK1 M1 which means every week/month is treated in it's own right ie... nothing is taken into account in terms of what you've paid up until that point). Finally, you are definitely not on an emergency tax code, if you were it would be showing as 'BR' which means basic rate - ALL of your pay would be taxed at 20%, you wouldn't get any tax free amount. Hope that helps
Download Salary Calculator on any device, it'll tell you everything
I wish I paid that little tax.
sofiasar

abviously you may be on the emergency tax like I was. give your employer … abviously you may be on the emergency tax like I was. give your employer or tax office a ring. same happened to me when I started work .I think it's awesome you earn nearly £2,000 a month, what do you do??


£2000 a month awesome? Its less than the average UK wage (£26,000)
chocci

£2000 a month awesome? Its less than the average UK wage (£26,000)


A teacher wage is 21-26 k . So your average wage for a average person doesn't make sense .
miikeyblue

I wish I paid that little tax.


+1. About a third of my wage goes to the govt each month. (NI + Income tax)
Absolutely being shafted for tax. How the hell the govt can still be in debt after all the tax is paid is beyond me. Some seriously bad money management imo at their end.
(and no, lets not start a political debate here )
sofiasar

A teacher wage is 21-26 k . So your average wage for a average person … A teacher wage is 21-26 k . So your average wage for a average person doesn't make sense .



Yes it does. Not everyone is a teacher.
sofiasar

A teacher wage is 21-26 k . So your average wage for a average person … A teacher wage is 21-26 k . So your average wage for a average person doesn't make sense .


Average wage in the uk is £26k = fact

You hardly ever make sense
But what is the mean wage in the UK?
Dyslexic_Dog

But what is the mean wage in the UK?




£7.27/hour is pretty mean....



http://mrwgifs.com/wp-content/uploads/2013/12/Awkward-Ba-Dum-Tss-Reaction-Gif-On-SNL.gif

Dyslexic_Dog

But what is the mean wage in the UK?


mean = average
CristianC89

Tax code should be correct: 1060L but I don't know what CUM stands for.NI … Tax code should be correct: 1060L but I don't know what CUM stands for.NI is what percentage from what? Gross income of after tax free?



cumulative

what a weird payslip, why in the hell are they adding holiday pay and then deducting it again?

but you're not paying enough..... if you're getting roughly the same monthly, you'll be underpaying tax, make sure it rights itself.

And why are you paying such a measly amount in to a pension? do you realise how futile and pointless such a sum is? you may as well keep it and stick it in a savings account or something and have an extra holiday
Edited by: "eset12345" 27th Apr 2015
chocci

£2000 a month awesome? Its less than the average UK wage (£26,000)



you do realise how the average is calculated? there's much more people on less than the average, and the average is bumped up by all those people on 100k, 500k 1 million etc etc, take out the extremes and your average wage for the man in the street is 20k or less

an 'average' means diddly squat in real terms.
1060L CUM is a cumulative tax code, which means that if you return to work after a break or if you start working part-way through the tax year, your tax-free personal allowance will have been building up and you may pay less tax for a while
eset12345

you do realise how the average is calculated? there's much more people on … you do realise how the average is calculated? there's much more people on less than the average, and the average is bumped up by all those people on 100k, 500k 1 million etc etc, take out the extremes and your average wage for the man in the street is 20k or lessan 'average' means diddly squat in real terms.


The average wage is still 26k

Look up the words average and median

the median wage is 24k
miikeyblue

I wish I paid that little tax.


and we all wish we earned what you earn
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