Salary tax query?

Question

My monthly gross salary is £1,560.00
I am on tax code 522L and pay £343.22 tax
Is it not too much? Please advice.

relating to my tax query, please note that income tax is 343.22 and NI contribution is 123.75 Is this correct, before i start bombarding my pay roll people?

Thanks

Answer 1

No its not too much tax. Your tax codes sounds about right.

Answer 2

You are paying tax at basic rate at the moment. The code number is not being used to give you the benefit of your personal allowances.

Where did you get your code number from? Is it on your payslip?

Possible reasons for this situation -

1. It's a new job and your first pay is in the same month as the last pay from your old job. If this is the case it is correct but the tax will fall next month.

2. Your employer does not have your P45 (or it hasn't got through to the right person in time to use it). This will also correct when they apply the code number.

3. You didn't give them a P45. So did you fill in the correct bit on the P46?

4. Someone in the payroll department has messed up.

Answer 3

From what I can figure your tax is right

522L is the Emergancy tax code/single persons - (see first link)

Another source says this is the single persons tax code (so its a bit confusing)

ANother source says that it is the emergancy tax code and the personal tax code for new employees (see last link)

If you have questions you can contact your local tax office and they can help you - or you can talk to the payroll department where you work. They will also be able to explain this

I have used a tax calculater - of your annual salary based on your monthly salary above (see 2nd link)

annual salary of 18720 with tax code 522L means your monthly tax should be £348 which breaks down in to income tax of £225 and National Insurance of £123

Update to your Update- It looks as if you are paying to much tax if as you say the NI was not in the total figure you put in your opening remarks - the National insurance is correct - your Income tax should be £225 (roughly)

You should go to your payroll department and ask them about it - it could be that because of the "emergancy" tax code they have taken out to much tax until you can be assigned a tax code from the tax office, Especially if you are a new employee with no P45 with a previous tax code.

IF the tax is wrong you could be in for a refund or they could adjust your tax the next pay period.

Talk to your pay roll office or talk to the tax office if your payroll department will not help you to understand this.

Answer 4

The way your tax code works is the first 5220 pounds you earn a year is tax free and the next 1500 is at 10% and everything over that up to something like 40k is at 22k on top of that you pay 11% national insurance on everything over 5220. So unfortunatelyit looks like you are paying the right ammount of tax.

Nb this is changing next year when they are axing the 10% band and everything over the 5220 or whatever your new basic rate is will be at 20%

Answer 5

Nope, thats exactly right. Tax under the single persons allowance works out about 22% - which is more or less exactly what you have been charged

Answer 6

monetary corporation A/c is ur A/c u can withdraw as and whilst required and as u like! there's no bar on that U shud deduct profession tax from the cost of salaries as pert regulation and pay to Gov. it truly is the main suitable information tht u had paid salaries. u gets deduction of Depreciation in basic terms! vehicle purchase is ur capital Expenditure & u cant declare deduction from gross revenues receipts.

Answer 7

Nope sounds about right you are not paying over.

Answer 8

it works out to be about a fifth of your gross pay.

Answer 9

sounds good to me!!