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Anyone understand the tax system?!

(6 Posts)
linziluv86 Tue 08-Jul-14 20:37:37

Hi, I'm wondering if anybody can help me understand what's happened?
I've received my P60, showing my earnings 2013/14 as £12591.74, and £942.60 in tax paid. A few weeks later I received my tax credit award, showing my earned income as £12938. Yesterday I received a P800 tax certificate stating my employer told them I earned £12938 along with a cheque for £243 as I'd overpaid. I'm really confused by it all! Will I owe them money now? My last wage slip in March show my p60 to be the correct figure.
I intend to ring first thing but I'm driving myself mad with worry this evening!
Thanks in advance.

FunkyBoldRibena Tue 08-Jul-14 20:42:30

If you earnt 12591.74 you should have paid £630.48 in tax

If you earnt 12938 then you should have paid 699.60 in tax.

Your refund takes you to the higher amount, if you earnt less then they owe you another £69

Speak to your employer and find out what the correct figure should be.

linziluv86 Tue 08-Jul-14 20:46:10

Thanks funky, that really helps! I'm brilliant at maths until a £££ sign appears then my brain goes to mush! As long as I don't owe them I'm happy! Will sort it tomorrow.
Thanks again.

FunkyBoldRibena Tue 08-Jul-14 20:56:42

I'm assuming your tax code was 944

By the way...

It means you earn 9440 before you pay tax and you would pay 20% over that.

So total - 9440 = taxable amount...that times 0.2 = the tax you should have paid.

linziluv86 Tue 08-Jul-14 21:19:52

Yes was 944L now 1000L.

TalkinPeace Wed 09-Jul-14 13:21:52

Your P60 will show your TAXABLE earnings, but some of your earnings may not have been taxable eg due to childcare vouchers or pension contributions.
THerefore the amount on your P60 will not tallk with the amount in the cumulative section on your month 12 pay slip.
Tax credits look at actual earnings, not just taxable.

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