How am I supposed to know if I'm getting taxed the right amount?

I can't remember exactly what it is, but there's a code on your payslip which should be telling you what rate you are being charged at - if it says "Week One" or "Emergency Tax" (or whatever the codes for those are) then you are paying too much.

I did actually sit down and work it out a few months ago (with the help of a nice man from the tax office). You get a certain amount of pay for FREE, then you get a low rate on the next bit, then you have to pay full tax on the rest. Yes, it's confusing. But I made an excel spreadsheet to figure it all out.

I've managed to get a rebate before but it's taken tremendous lengths and I don't want getting taxed more than I have to for working a second job.

Have a look here: http://www.inlandrevenue.gov.uk/pdfs/p3_2003.pdf for a guide to tax codes. They may have a calculator to help you work out whether you're on the right code of not, or at least will tell you how to work it out yourself.

More than one job

If you have more than one job, you will get a separate PAYE code for each job in which your earnings are taxed under PAYE, and normally a separate notice of coding for each job. All the reliefs and allowances you are entitled to will normally be included in the tax code for your main job. This means that all your earnings from the second job may be taxed. If so, the tax code you are given for the second job will be:-

BR: if you are being taxed at the basic rate of tax; or

DO: if you are being taxed at a higher rate of tax.

If the income earned from the second job takes you into the higher rate of tax, all the earnings from the second job will be taxed at the higher rate. If you are in this situation you may find that your tax bill will need adjusting at the end of the tax year.

(http://www.adviceguide.org.uk/index/life/tax/pay_as_you_earn_common_problems.htm)

I think you need to talk to that nice man's daughter again.

you're right, BR is what employers sometime's stick you on when you start, and it presumes that you've got another job and doesn't give you a personal allowance, which is what happened to me.

Have you spoken to your HR unit? I didn't actually notice, but got a letter from payroll telling me about it (it only took them three years) , and I didn't need to fill in any forms, I just sent a letter to the tax man along with my P60s.

Also, Charlie, you earn pretty much the same as me, wtf are you doing with it that you can't afford to live with yr parents?!

xpost you're on emergency too Nick!

Look on the bright side - anyone on emergency tax almost certainly has a windfall coming to them! (x-post obv)

It cost me around £8. That's my wages for working two hours in tonight's evening shift.

X-post. You track your spending? Fucking hell. I don't even open my bank statements - just check my balance at the TM when I take cash out. I paid off my overdraft with a graduate loan, which also wiped out my credit cards.

How many times do I have to tell people? READ YOUR BANK STATEMENT. DO NOT RELY ON ATM BALANCES. You don't know the number of people I know who have got into trouble this way.

I have an Excel spreadsheet with my budget on it, but I only been sticking to it very loosely. I'm usually quite good with money, but you know, trips to Cambridge, impulse punting, these things are important!

Anyhoo, you can work out what you're paying by adding the income tax and national insurance bits and calculating that as a percentage of monthly gross. 22% is normal for £2-£30ishK/year.

Damn that was annoying for a while.

Yes it is..

regards
ir3ne

-----Original Message-----
From: M1LLER, H3nry
Sent: 30 July 2004 14:42
To: Payroll UK
Subject:

Hi,

My tax code is 474L1 -- is this the emergency code?

H3nry M1ller

Didn't buy me a point though did he, the cunt.

xpost gah what a cockfarmer

You should have just asked him to buy you a pint!

Oh, and messily murder all payroll personnel nationwide kthxbye

Tip 1: Never EVAH throw away any of your payslips, even if they're from that ice cream job you did 10 years ago (I served Chris Rea, don'tcha know). Same goes for Ps 45 and 60.

Tip 2: Talk to someone nice at Inland Revenue and explain the situation to them - feign (or admit) complete stupidity and ignorance. It's likely they'll ask you to send in photocopies of all your payslips since the previous financial year (and perhaps before) and they'll sort it all out. Make sure you buy them a pint, mind.

Tip 3: The codes - the first 3 digits denote the amount of your wages you get before being taxed, i.e. "483L" says I can earn £4830 before the taxman cometh. The "L", I believe stands for your local tax office - mine is Lothian in Scotland. Despite the fact I live in Walthamstow.

Nope, the rate is the same from £2-30K.
Revenue info hurrah

If you are paid £12,000 a year and have no other income:

The first £4740 is tax free.

The next £2020 is taxed at 10% (£202)

The remaining £5240 is taxed at 22% (£1153)

Therefore you should be receiving £10,645 after tax.

HOWEVER - National insurance is on top of that - it's roughly 9% on your gross salary - i.e. about £1080

So your total take-home pay should be roughly £9,565, which equates to £796 a month.

Does that make sense?

http://www.refundsdirect.co.uk/index.html