PAYE Tax increase

[chrisaxe21]

Hi all,

 

I checked my PAYE Tax in May and it was around £300. In June it had shot up to over £400. Is this due to the UK budget coming into effect or is something unusual here?

 

I've been advised to investigate with HMRC but knowing how long they take to do anything I thought I'd ask here first

 

Thanks

 

Chris

[honeybee13]

Hello there.

 

I assume you were paid the same gross amount in both May and June? Is your tax code the same on both payslips, or are there other deductions that are different?

 

Before asking HMRC, I would also talk to your payroll people. They're usually pretty good at understanding payslip printouts.

 

My best, HB

[chrisaxe21]

Thanks for the reply.

 

Yes, the gross is identical. The NI is also identical, it's just the PAYE that's different. I've spoken to our payroll and they say that their Sage software just updates automatically so any tax changes are done without their intervention.

 

Does that help?

 

Thanks

 

Chris

[honeybee13]

Yes, a bit. Has your tax code changed between the two months please?

[chrisaxe21]

No, the tax code is also identical.

 

Anything else I can let you know about?

 

Thanks

 

Chris

[honeybee13]

Hello again.

 

Tax isn't my speciality I'm afraid, I just know the basics.

 

I'm as confused as you now, and know nothing about Sage. I'm surprised your payroll people don't know what might have happened. Is anyone else affected by this where you work?

 

I would ask payroll again, but if they can't answer, you may need to ring the HMRC, sorry.

 

HB

[BazzaS]

Hello again.

 

Tax isn't my speciality I'm afraid, I just know the basics.

 

I'm as confused as you now, and know nothing about Sage. I'm surprised your payroll people don't know what might have happened. Is anyone else affected by this where you work?

 

I would ask payroll again, but if they can't answer, you may need to ring the HMRC, sorry.

 

HB

 

What is the tax code, and are you earning more in those 2 months than on average earlier in the year (or any periods of unemployment earlier in the year?)

 

If your code for both months is e.g. 747LX .... should be the same tax for the same basic, unless something has changed taxable pay to non-taxable or vice versa (such as different pension payments or buying something on a 'salary sacrifice' scheme)

 

If the code for both months is e.g. 747L. (no 'X' suffix) : same as above (any changes?) but also:

Did you have any accrued allowance from previous months that meant you paid less tax in May, but then were used up so weren't available as accrued allowance rather than "just that month's allowance" in June?

[Gbarbm]

Normally a tax code is cumulative, which means there is a rolling total of the tax month on month.

If there is an x or W1/M1 after the code, this means the code is being operated on a week 1/month 1 basis which means tax is deducted as if itvwere the first week or month of the year(no account is taken of the previous tax deducted) this is usually done if an overpayment is being collected from a previous tax year or a deduction for job related benefits is included in the code such as car benefit.

Would you be able to scan a copy of the payslip ( redact NiNo and other personal details first) so I can check it and hopefully advise you further