Tax code and pay query.

[di30]

Re: Tax code and pay query.

Thank you everyone, my friend also appreciates it big time.

Anyway, I was mistaken and forgot her son was working and not unemployed before he had taken this current job, and it appears that whatever he earned to date from the previous employment is to be included on top of the amount to date with this company, which is why they have only now started to tax his pay.

[garlok]

Re: Tax code and pay query.

Hi Di,

Happy New Year to you and yours. Sorry for not getting back straight away to your last. However that will explain entirely the reason for him paying tax. As I said his employer will be looking at the "Tax Tables" probably week 39 or month 9. All earnings for the current tax year are taken into account and certain benefits are counted as "earnings" as well.

Glad it seems to have been sorted.

regards
Garlok

[di30]

Re: Tax code and pay query.

Hi Di,

Happy New Year to you and yours. Sorry for not getting back straight away to your last. However that will explain entirely the reason for him paying tax. As I said his employer will be looking at the "Tax Tables" probably week 39 or month 9. All earnings for the current tax year are taken into account and certain benefits are counted as "earnings" as well.

Glad it seems to have been sorted.

regards
Garlok

Thank you Garlok, and a Happy New Year to you too! X

Yes that does make lots of sense, I think her son must have made contact to query this and it seems they explained it the way you have too.

Wonderful, thank you so much Garlok and hey no need to apologise, its been a very busy time. X

[kilasuit]

Re: Tax code and pay query.

what you need to do is split the tax allowance by the fequcuency of being paid to get the pay threshold before getting taxed and paying NI contributions

for example i'm paid fortnightly so i take the tax free allowance of 7475 and divide it by 26 (as i get paid 26 times in a tax year) to find my threshold which for me is £287.50 before i get taxed. Anything over this is taxed at 20%

NI threshold is £139 a week after which 12% of earnings goes to NI contributions.

I hope this helps somewhat.

[di30]

Re: Tax code and pay query.

what you need to do is split the tax allowance by the fequcuency of being paid to get the pay threshold before getting taxed and paying NI contributions

for example i'm paid fortnightly so i take the tax free allowance of 7475 and divide it by 26 (as i get paid 26 times in a tax year) to find my threshold which for me is £287.50 before i get taxed. Anything over this is taxed at 20%

NI threshold is £139 a week after which 12% of earnings goes to NI contributions.

I hope this helps somewhat.

Ooh thank you, that will be a great help cheers and for anyone else who may wonder how its worked out.

Thank you so much.

[garlok]

Re: Tax code and pay query.

Like I said NI is a lower threshhold and is fixed. NI is payable only a fixed amount of salary between an upper and lower threshold. Also it pays to rememebr that NI is payable and calculable on GROSS salary not NET salary as well.

regards
Garlok

[di30]

Re: Tax code and pay query.

Like I said NI is a lower threshhold and is fixed. NI is payable only a fixed amount of salary between an upper and lower threshold. Also it pays to rememebr that NI is payable and calculable on GROSS salary not NET salary as well.

regards
Garlok

Thank you Garlok, and yes it all seems to make sense now for sure.

Ooh they say we learn something new everyday cheers for the explanation x

[5corpio]

Re: Tax code and pay query.

Fury as Revenue & Customs tells taxpayers 'check your own code'

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