Tax, Wage and Stuff

[wykikitoon 21478]

Right a couple of questions for you.

 

I have changed companies and as I havent yet got my P45 from my previous company, so prior to getting paid where I am now I filled out a P46. Just looking through my wage slip I havent got a tax code on, is this normal

 

Secondly. Is there an easy way of working out what you earn a day?

 

I have found a website (Edit:=yr&vw[]=mth&vw[]=wk]here (btw I dont earn that much ) that does it into weekly including tax deductions, however I cant find one that does weekly. As I only work Mon - Fri, how would my wage be calculated? Will it be prorotaed (sp) for Sun - SUn or is it as simple as getting the figure I have from the webby and dividing it by 5?

 

I have headache

Edited September 15, 2008 by wykikitoon

[The Fish 11071]

No help here, I just wanted to get your hopes up

[LeazesMag 0]

you will be paying tax under an "emergency tax code". The amounts will be sorted later when all your new details are known, nowt to worry about. Get them sorted as soon as you can though.

 

Your tax is worked out on an annual basis, as a projected amount based on current earnings and information held, this is why when you change jobs etc you sometimes get a tax rebate. Its because of the change in earnings.

 

Weekly tax will be your annual projection divided by 52, after the tax free allowance and based on your tax code.

 

Think I've explained this OK, someone else may be able to do better.

[wykikitoon 21478]

Cheers Leazes

 

I did fill out a P46, should I still be paying emergancy tax?

[peasepud 59]

The fact you only work Mon - Fri is irrelevent as thats what generally 90% of the population work, its the period that you get paid that matters.

 

The calculation of tax is simple.

 

You need your Tax Code (as Leazes said, if you dont have one then you're on emergency) which basically means all your pay is taxable.

 

If you have a tax code then theres usually numbers on there (eg 453L) the letter also means something but generally in the main its L.

 

Take the number (453) multiply it by 10 and add 9 and you have your annual freepay, this is the amount you are entitled to earn in a year without paying tax. Divide that number by the number of pay periods (52 if weekly paid and 12 monthly) then take that off your pay and calculate 20% of the remainder.

 

It only changes if you go over the threshold for the upper limit (weekly is £669) in those cases you pay 40% on the amount over that.

 

So if you earn £200 per week and have a tax code of 100L then you are entitled to earn £1009 p/a without paying tax which works out at £19.41 per week.

 

£200 - £19.41 = £180.59 (rounded down to £180) and multiplied by 20% = £36 tax per week.

 

Its slightly more complicated than that because its worked out cummulatively so can change slightly from week to week but thats it.

 

So in your case if you earn £200 per week then because you're paying tax on all of it then you'll pay £40 tax in the week. Dont forget you will also pay NI on anything over £105 per week as well, which is going to be either 9.4 or 11% of the amount (until you hit the Upper Earning Limit).

[wykikitoon 21478]

Sweet cheers Pud.

 

So, the fact I have filled out and sent off a P46 doesnt mean fuck all? I am still waiting for my P45 from my previous employee.

 

Also, the working out of my wage per day. Is it as simple as taking what I earn per week after tax and dividing it by 5?

[peasepud 59]

without the P45 the employer doesn't know what freepay to deduct so plays safe by using none. If they don't receive one then theyll contact HMRC to get the code. At some stage you'll be quids in when it gets refunded

[ewerk 31587]

Your tax code should be 543L, provided that you're only entitled to the basic personal allowance with no additions or deductions.

[wykikitoon 21478]

Your tax code should be 543L, provided that you're only entitled to the basic personal allowance with no additions or deductions.

 

Aye thats what it was on my last wage slip