Paid £205, got taxed £47.27, is this normal?

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  • Paid £205, got taxed £47.27, is this normal?


Answer #1 | 17/12 2013 11:38
What is your tax code IT should be 944L Yes you will be taxed, but not by as much as that UK
Answer #2 | 17/12 2013 11:46
Well if this is your only job, then your incompetent emplooyer has put you on the wrong tax code. You should be on 944L. Go to him/her and demand that they adjust your tax code immediately so that you not only get a refund of the tax you have suffered already but also don't pay any tax in the future. Your earnings are too low to attract any tax.
Answer #3 | 17/12 2013 11:47
No it's not right but that is because you are on the wrong tax code. You can earn around 9,440 before paying any tax. You will get it back probably in April but in the mean time either phone them or ask your work to sort out the correct code which should be 944L.
Answer #4 | 17/12 2013 11:48
If this is your only employment the code is wrong. Get the HMRC phone number from Call in . It may help to have the payslip in your hand when you call. - they can issue an amended code overnight. If you have two or more employments work out the qeekly earnings in each before you call.
Answer #5 | 18/12 2013 13:36
On the contrary CLIVE does not know anything about how our tax system works. Many times employers put employees on a BR code because they are too rushed to comply with formalities. Once you complain, they will follow proper procedures and get you to sign a P46 form saying this is your ONLY and MAIN job and then you will automatically be allocated a code of 944L instead of BR which means that you pay less tax. Nowadays it is all RTI so the employer will get notified about your corrected tax code immediately online. Shame on you Clive for giving misleading information to this nice girl called: IHateMYself.
Answer #6 | 17/12 2013 21:18
Perfectly normal on a tax code of BR, which means deduct a flat 20%. But that's the wrong code. You should have filled in a P46 or Starter Checklist provided by your employer, which is designed to help them get it right. If you didn't get one, you have an incompetent employer. (I used to run a small payroll and it IS complicated, but this is absolutely basic.) If you got one and didn't return it, now you know why you're on the wrong code. To get your code corrected, contact HMRC and get them to issue a new code, probably 944L to show that you can earn £9,440 per year without paying tax. Once you have the right code, it will all work out by itself and you get the overpayment back by being taxed less in the future. BR is for the second job if someone has two jobs, because they've got their allowance of £9,440 on the first one. The thing with income tax is that it's worked out for the year as a whole, not just each pay day, so it can only ever be properly checked once the tax year ends on 5 April. On this rate of pay you should be paying something, but if from 6 April until now there are times when you haven't worked, you have unused allowance to use up and PAYE is supposed to take all that into account. This is what P45s are for - that shows your pay and tax to date as well as your code so a new employer can get it right from Day 1. You've been charged £205/5 = £41 tax, and the remaining £6.27 is National Insurance. NI is just charged every pay day at 12% on anything over £149 per week, and you've been charged correctly for that. I think when you said A, you told us the NI Table letter by mistake, and that all fits together - Table A means 12%. (The only other Table letter you're ever likely to have is D, which shows you are getting a discount on NI for being in an approved employer's pension scheme.) @Jo W, you know nothing about how the system works. Once an employer has used a code for the first time, they can only change it if HMRC tells them to. @Chef, you have not read my answer properly. I am describing how it SHOULD work. It is not for me to judge whether the employer is doing their job properly. Shame on you Chef for being so rude. You have no idea of my past experience of this, which is extensive.

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