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Original poster

massive increase in income tax this month??

63 replies

Taxxxx · 24/04/2024 11:18

last month I was paid 150 more than this month. It seems this is due to an increase in income tax? I actually don’t know how I am going to cope, nursery has just gone up 129 a month too. I thought tax was supposed to be a tiny bit less in 2024, not substantially more?!

OP posts:
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5byfive · 25/04/2024 21:02

Galliano · 25/04/2024 05:33

NI is not cumulative like tax. It’s calculated on the current pay period hence why the government publishes weekly and monthly thresholds.

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I asked payroll about this today. Statutory Directors (even those that don’t have shares and are really just employees) do pay NI cumulatively like tax.

You were obviously correct for normal employees.

Sorry for any confusion I caused.

Galliano · 25/04/2024 05:33

5byfive · 24/04/2024 19:36

She’d be paying less NI than last April (assuming everything else was the same) due to the change from 10% to 8%.

She’d be paying more NI than in March. They don’t divide the higher rate band by 12 and you pay an equal amount monthly. You pay NI at the top rate until you’ve paid enough to move to the lower 2% rate then pay that for the rest of the year.

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NI is not cumulative like tax. It’s calculated on the current pay period hence why the government publishes weekly and monthly thresholds.

Noyesnoyes · 25/04/2024 04:53

ssd · 24/04/2024 11:47

63k my heart bleeds for you

We all live to our means, so a drop in income is relevant!

Bjorkdidit · 25/04/2024 04:12

Taxxxx · 24/04/2024 11:58

It’s not an emergency tax code it’s just my usual one, I’ve been on it for a long time @Magnastorm I had to pay back child benefit but did that in one lump sum already

Maybe it's not been recorded yet on your tax account that you've done this?

But since January your pay should have gone up twice simply due to the reduction in NI. I earn slightly less than you but my take home increased by about £60 each time, so your April take home should be more than March, not less.

Have you compared the tax you paid for the whole of 2023/4 with what a tax calculator says you should have paid?

Do you have any taxable benefits like a company car?

LutherRalph1 · 25/04/2024 01:43

My husbands is the same, I believe it is a new tax year / tax code issue that maybe hasn't been updated properly for you?

5byfive · 24/04/2024 19:36

SkyBloo · 24/04/2024 11:52

At that salary your NI would have been 2% last month. Back up to full rate in April

Not sure this is correct. Rate between 12 & 50k dropped from 10 to 8%, rate from 50k was 2% and still is. If anything op would be paying less NI.

She’d be paying less NI than last April (assuming everything else was the same) due to the change from 10% to 8%.

She’d be paying more NI than in March. They don’t divide the higher rate band by 12 and you pay an equal amount monthly. You pay NI at the top rate until you’ve paid enough to move to the lower 2% rate then pay that for the rest of the year.

noworklifebalance · 24/04/2024 16:42

ssd · 24/04/2024 11:47

63k my heart bleeds for you

Totally irrelevant - OP is not looking for sympathy or pleading poverty and they are right to scrutinise and question deductions

Comefromaway · 24/04/2024 16:30

Can you post a picture of your last months and this months payslip with all identifying details scrubbed out?

Comefromaway · 24/04/2024 16:26

There isn't anything like M1 or W1 next to your tax code?

Have your pension contributions stayed the same?

Have your NI contributions stayed the same?

PickledPurplePickle · 24/04/2024 16:24

Did you work a full year last year at the same rate?

RedPony1 · 24/04/2024 16:20

looks back at payslips before March. It could be you paid less previously due to over paying tax earlier in the year, for example, a bonus

Soigneur · 24/04/2024 16:18

DappledOliveGroves · 24/04/2024 11:50

Give HMRC a call. It may be a wait so stick your phone on speaker and get on with other stuff until they answer!

OP has already said her tax code hasn’t changed so HMRC won’t be able to help. She needs to take it up with her payroll provider.

BadBones60 · 24/04/2024 16:14

On maternity pay/SMP for part of last tax year?

PostItInABook · 24/04/2024 14:24

ssd · 24/04/2024 11:47

63k my heart bleeds for you

Careful you don’t choke on that bitterness.

Jmaho · 24/04/2024 14:17

If tax code hasn't changed it is likely to be you earning less last year as other posters have suggested
Is this the case?
First things first, again as already suggested use a salary calculator as these tend to be fairly accurate

Youdontevengohere · 24/04/2024 14:16

ssd · 24/04/2024 11:47

63k my heart bleeds for you

I earn double that and would still investigate if I’d paid more tax than I was supposed to 🤷🏻‍♀️

DistinguishedSocialCommentator · 24/04/2024 14:15

Hi

Call your local tax office - seek info via employer.

Notgoodatchoosingnames · 24/04/2024 14:13

Temushopper · 24/04/2024 12:12

My tax will go up when we move to new tax year because I overpaid when I got my bonus in September (it calculated as though that was my new salary and taxed at 40% but some of it should have been at 20% so past few months I’ve been getting that back and I won’t in the new tax year

I was about to say this. it used to throw me every year.

johnd2 · 24/04/2024 14:10

Did you get 63k for the whole year last year?
If you (say) had 3 months unpaid leave April to June then your tax code would be the same but you wouldn't end up in the 40% bracket.
This year they will be assuming that you'll get paid 12x your April salary, which may not have been the case by the end of last year.

Itsonlymashadow · 24/04/2024 14:05

Taxxxx · 24/04/2024 11:44

@Itsonlymashadow no taxable benefits and salary the same

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So In The financial year April 2023- March 2024 , did you also earn 63k?

LaCouleurDeMonCiel · 24/04/2024 13:35

ssd · 24/04/2024 11:47

63k my heart bleeds for you

OP is asking a question, why the need to be so rude? Are you having a difficult day?

minipie · 24/04/2024 12:31

Have you compared with payslips from 2/3/4 months ago.. just wondering if your last month one was unusually low tax rather than this one being higher iyswim

MereDintofPandiculation · 24/04/2024 12:22

Taxxxx · 24/04/2024 11:46

@EauNeu i was wondering if it was the case generally in the new tax year

Show quote history

The tax code says how much of your salary should be ignored before taking tax off the rest. So if salary is the same (ie the amount paid in this pay period, not your annual salary), and tax code is the same, the sum should give the same answer. Go to your payroll team, explain that your salary is the same, your tax code is the same, but the tax taken is higher, and ask them to explain.

If that fails, then I'm afraid you're stuck talking to HMRC.

The only thing I can think of is that if you're paid "monthly" rather than "4-weekly" some months would be 5 weeks and some 4 weeks. If you're on £63k. then that's £1211 per week, and an extra week's tax would be quite a lot. But if that were the case, the net salary should still be higher than last month.

Temushopper · 24/04/2024 12:12

My tax will go up when we move to new tax year because I overpaid when I got my bonus in September (it calculated as though that was my new salary and taxed at 40% but some of it should have been at 20% so past few months I’ve been getting that back and I won’t in the new tax year

Temushopper · 24/04/2024 12:10

Send it to your payroll and ask them to clarify why it has changed. I would think there is a possibility it’s just a mistake if nothing on your payslip aside from your tax has altered

If you are in the U.K. you can below online calculator to check what your tax would ordinarily be though you need to complete details of taxable benefits, pension, childcare vouchers, student loan etc to get an accurate output

https://www.thesalarycalculator.co.uk/salary.php

The Salary Calculator - Take-Home tax calculator

The Salary Calculator tells you monthly take-home, or annual earnings, considering UK Tax, National Insurance and Student Loan. The latest budget information from April 2024 is used to show you exactly what you need to know. Hourly rates, weekly pay an...

https://www.thesalarycalculator.co.uk/salary.php