£200 tax from my monthly salary of about £800. I receive approx £80 per week pension. Should I be paying an extra £200 .on what in fact is a £340 increase? I usually pay about £60 tax .This month I have paid about £260.
2007-06-27 06:39:53 · 3 answers · asked by robert r 1 in Business & Finance ➔ Taxes ➔ United Kingdom
Your change in tax code does mean that you are paying more tax, as you`ve seen. You`ve gone from a tax free allowance of £5225 down to £1570 (spread over a year).
Theres no way of saying why this has happened, you`d need to contact the Inland Revenue and ask them.
It looks like you`ve underpaid tax somewhere along the line, and they`ve dropped your tax code to claw it back.
Contact your local tax office ASAP, and they should be able to explain why, or rectifiy it if its a mistake.
2007-06-27 08:09:34 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Your income for this year will be:
Pay 800 x 12 = 9600
Pension 80 x 47 = 3760
Total income 1336 0
less personal allowance 5225
Taxable 8135
Tax due : 2230 @ 10% = 223.00
5905 @ 22% = 1299.10
Total tax due for year £1522.10
Tax paid for April 60.00
Tax paid for May 60.00
Tax paid for June 260.00
Tax still to pay this year 1522 - 380 = 1142 / 9 = 126 per month
Therefore for the rest of the year, you ahould pay about 126 tax per month.
For some reason, HMRC has reduced your PAYE code without putting you on a month 1 basis, which means all the tax you were due to pay from 14 May on your pension has been deducted from this month's pay. Should sort itself out next month - not worth complaining now.
2007-06-27 09:50:41 · answer #2 · answered by fengirl2 7 · 1⤊ 0⤋
Sorry, i dont know the answer, but thought i should pop in and say happy belated birthday!
2007-06-27 06:50:12 · answer #3 · answered by vex 4 · 0⤊ 1⤋