Tax/Tax Code advice/help?
Discussion
I work in media sales, and I get paid commission quarterly. Some quarters/years can be very good, others can be pretty average.
I've only ever done two tax returns in my life as I was lucky enough to push over the £100k barrier for what I earned in 2019, and my family told that is the threshold at which you need to do a self assessment (is that right??)
I did one last year as well as they said it was best to keep doing them.
But, I'm a bit worried I've not really been doing it right......my take home each month (non-commission months) is now a fair bit lower than it has been for a long time. For all my career previously as I've not been doing a self assessment I've accepted that whatever my payslip says it right and it's always been pretty even/regular month on month.
My main question here is should I be updating my tax code/assessment or whatever it's called once a quarter, once I know how much commission I've actually earned every 3 months? My assumption being the more accurate I am at 'predicting' my annual earnings will mean I'm closer to ensuring I'm paying the right amount of tax?
Any help much appreciated, as a 37 year old I feel I should know more about all of this than I do! Just feel like I'm stabbing in the dark and it's hitting my in the pocket!
I've only ever done two tax returns in my life as I was lucky enough to push over the £100k barrier for what I earned in 2019, and my family told that is the threshold at which you need to do a self assessment (is that right??)
I did one last year as well as they said it was best to keep doing them.
But, I'm a bit worried I've not really been doing it right......my take home each month (non-commission months) is now a fair bit lower than it has been for a long time. For all my career previously as I've not been doing a self assessment I've accepted that whatever my payslip says it right and it's always been pretty even/regular month on month.
My main question here is should I be updating my tax code/assessment or whatever it's called once a quarter, once I know how much commission I've actually earned every 3 months? My assumption being the more accurate I am at 'predicting' my annual earnings will mean I'm closer to ensuring I'm paying the right amount of tax?
Any help much appreciated, as a 37 year old I feel I should know more about all of this than I do! Just feel like I'm stabbing in the dark and it's hitting my in the pocket!
PAYE doers not work well when somebody has fluctuating income levels - especially if they fluctuate into and out of higher rate tax bands.
My advice would be to elect to file self assessment tax returns and avoid having HMRC mess with your PAYE codes. They will never get it right and you will never know for sure whether you are paying the correct tax amount each month.
God knows what will happen when Self Assessment is abolished in April 2024.
My advice would be to elect to file self assessment tax returns and avoid having HMRC mess with your PAYE codes. They will never get it right and you will never know for sure whether you are paying the correct tax amount each month.
God knows what will happen when Self Assessment is abolished in April 2024.
Eric Mc said:
PAYE doers not work well when somebody has fluctuating income levels - especially if they fluctuate into and out of higher rate tax bands.
My advice would be to elect to file self assessment tax returns and avoid having HMRC mess with your PAYE codes. They will never get it right and you will never know for sure whether you are paying the correct tax amount each month.
God knows what will happen when Self Assessment is abolished in April 2024.
Ok thank you, I did wonder if my big changes in income would be making it tricky, seems it probably has done for many years. Hopefully I can get in the swing of doing this myself accurately and I'll know where I stand. At the moment I think I'm now paying back around £3.5k I underpaid without even knowing I had. My advice would be to elect to file self assessment tax returns and avoid having HMRC mess with your PAYE codes. They will never get it right and you will never know for sure whether you are paying the correct tax amount each month.
God knows what will happen when Self Assessment is abolished in April 2024.
They still modify the PAYE code through the year even with self assessment. They do with me anyway, after a mid-year bonus.
The other thing they try is payment on account which IMO is absolutely abhorrent.
What are they replacing SA with? If they are going to go fully via PAYE codes that'll be a nightmare.
The other thing they try is payment on account which IMO is absolutely abhorrent.
What are they replacing SA with? If they are going to go fully via PAYE codes that'll be a nightmare.
UTH said:
Payday today and it's the lowest I've had in my 3 years at this company, which really worries me.
My pension contribution has also gone up by nearly double. What the hell is going on. I even got a slight payrise, and yet I'm taking home less than ever.
Obviously if you are putting more into your pension you will end up with less in your pocket. You should probably know why the pension contribution has changed? My pension contribution has also gone up by nearly double. What the hell is going on. I even got a slight payrise, and yet I'm taking home less than ever.
As an aside you should probably find a new job, you should have been clearing 100 for bloody years flogging media in this day and age
bmwmike said:
They still modify the PAYE code through the year even with self assessment. They do with me anyway, after a mid-year bonus.
The other thing they try is payment on account which IMO is absolutely abhorrent.
What are they replacing SA with? If they are going to go fully via PAYE codes that'll be a nightmare.
You can talk to them and tell them NOT to amend your PAYE code. It's your choice.The other thing they try is payment on account which IMO is absolutely abhorrent.
What are they replacing SA with? If they are going to go fully via PAYE codes that'll be a nightmare.
okgo said:
UTH said:
Payday today and it's the lowest I've had in my 3 years at this company, which really worries me.
My pension contribution has also gone up by nearly double. What the hell is going on. I even got a slight payrise, and yet I'm taking home less than ever.
Obviously if you are putting more into your pension you will end up with less in your pocket. You should probably know why the pension contribution has changed? My pension contribution has also gone up by nearly double. What the hell is going on. I even got a slight payrise, and yet I'm taking home less than ever.
As an aside you should probably find a new job, you should have been clearing 100 for bloody years flogging media in this day and age
And yes, I agree, I should be doing better than I am haha. Clearly not brown nosing enough.
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