Tax

[okgo]

Have I missed something that has just come into play this month?

I've been taxed a LOT more than usual, as has everyone I work with...Have they moved the thresholds, or is there something about it being the first pay of the year etc?

Very noob question, but just can't work out what has gone on, as far as I can see I should be taking more home given my tax free allowance has actually gone up now...

[Newc]

Have you gone over one of the thresholds like child benefit limit, loss of allowances at 100k ? Or recovery of previous year's underpayment ?

[Devilstreak]

If its happened to everyone else too I'd check my tax code. Basic should be 944L if it was 840L last month...
Have the employer entered the new codes Incorrectly?

[okgo]

How would I know?

I didn't get child benefit etc before, I haven't breached any major threshold, as in, above higher rate, but not 150k equiv, just a bit miffed...

@devil - nope its listed as a 944L on the slip

[Alex]

Basic rate threshold has risen, but 40% threshold has lowered. Also, if you earn over £150k, you will be subject to the gradual removal of the personal allowance.

[Deva Link]

okgo said:

I've been taxed a LOT more than usual,

Define "a LOT".

Alex said:

Basic rate threshold has risen, but 40% threshold has lowered.

Balance the two and it makes about £20/mth difference.

[okgo]

So my bonus this month is £500 less than it was in Jan, but I've been taxed £700 more. I don't really know how I can give detail without giving the amounts away, but lets just say the £500 difference isn't much of a difference in the grand scheme but it seems the tax is almost a 3rd higher...

[sumo69]

I run a payroll bureau - if you want to PM me the numbers I will check them for you and respond via the same method.

David

[okgo]

Ah, payroll came back to me finally!

Apparently because it was a bonus and the first month of the year its assuming my annual salary is higher than it actually is, so apparently next month I should be refunded somewhat to make up for it.

[Countdown]

okgo said:

So my bonus this month is £500 less than it was in Jan, but I've been taxed £700 more. I don't really know how I can give detail without giving the amounts away, but lets just say the £500 difference isn't much of a difference in the grand scheme but it seems the tax is almost a 3rd higher...

Tax is cumulative.

Your pay "this" month (Month 1) sounds like it was a lot higher than your "average" pay for the whole of last year.

Or you had a pay spike in February and therefore paid more tax than normal. This was corrected when your pay in march dropped. And now it's swung the other way.

Basically fluctuations in pay can cause fluctuations in tax. Theyre not always in sync.

[wattsm666]

Alex said:

Basic rate threshold has risen, but 40% threshold has lowered. Also, if you earn over £150k, you will be subject to the gradual removal of the personal allowance.

This removal kicks in at £100k

[Kudos]

Alex said:

Basic rate threshold has risen, but 40% threshold has lowered. Also, if you earn over £150k, you will be subject to the gradual removal of the personal allowance.

But tax rate has dropped from 50% to 45%, hurray!

[Alex]

I'm disappointed that Osborne didn't have the balls to scrap it completely.