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Thread: tax deduction

  1. #1
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    tax deduction



    Hello guys,
    I've been working nearly 6 months of my part time job and i've notice in my payslip that they take off 20% of my gross pay...Just asking if this is normal? Is anyone of you here like mind? please share...thanks


  2. #2
    Respected Member Bluebirdjones's Avatar
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    Deductions

    I assume it's because u might be on an emergency tax code, as they have no
    "history" of you.
    (.... although some of the deduction might be National Insurance contributions).

    If it's tax, u should be able to claim most of it back.
    The tax year in the UK runs from 1April - 31 March, and a single person can
    earn £6,475 per year before paying tax.
    So, if you've earned under that, you'll get it back
    (But u MUST claim it !)

    If you've earned for eg £8,000 in the tax year,
    your tax will be £8,000 - £6,475 @20% = £305
    (,.... and obviously, if you've paid more, u claim a refund)

    See
    http://www.direct.gov.uk/en/MoneyTax...eTax/index.htm
    ... the bits about receiving a tax coding
    & tax allowances.

    No man is an island, but Barry is


  3. #3
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    Yep, just as bluebirdjones says, you should have a nice cheque sometime in the future :-) it normally comes when you least expect it.

    I remember paying tax once upon a time, many many years ago.


  4. #4
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    Quote Originally Posted by Bluebirdjones View Post
    I assume it's because u might be on an emergency tax code, as they have no
    "history" of you.
    (.... although some of the deduction might be National Insurance contributions).

    If it's tax, u should be able to claim most of it back.
    The tax year in the UK runs from 1April - 31 March, and a single person can
    earn £6,475 per year before paying tax.
    So, if you've earned under that, you'll get it back
    (But u MUST claim it !)

    If you've earned for eg £8,000 in the tax year,
    your tax will be £8,000 - £6,475 @20% = £305
    (,.... and obviously, if you've paid more, u claim a refund)

    See
    http://www.direct.gov.uk/en/MoneyTax...eTax/index.htm
    ... the bits about receiving a tax coding
    & tax allowances.

    Yes...I had paid a basic rate tax...I need to call them and sorted this out....
    thank u very much....


  5. #5
    Respected Member sparky's Avatar
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    guess its a part of the UK system that takes some getting used to but i reckonmkore than offset by the NHS alone

    just wait till you start paying at 40%- now that really hurts i can tell you


  6. #6
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    But again, like the first part of non taxable salary, you only get taxed 40% on the part above the threshold, so its not quite so bad. But then the real top earners know how to keep money offshore, like these celebrities and footballers :-( So much for supporting the country.
    I'm a little bit lucky that in a job that if I declare to the tax man on a yearly basis my earnings, and as long as I get 6 months out of the country, he sends me a letter back saying exempt. :-) But they are starting to clamp down on this and I don't think my FED will last much longer...


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