Paye tax help

[NamechangeTTC]

This may be a strange request.

I have a new main, full time occupation.

Alongside this I have three very part time jobs which pay (and some self employment).

For 2020-2021 the self employment is moot as coronavirus means I got zero pay. So I’m discounting that overall.

I can’t find anywhere a calculator that helps you do x@personal allowance, y@ basic rate etc (I’m in Scotland).

I’ve done a salary calculator/tax calculator adding all 4 incomes up and it says I should pay £12.5k in tax.
When I calculate it myself it seems I should pay £25k! The income is c.£60k totally.

None of this is a boast. I’m currently in tears at my kitchen table as it seems I’ll lose most of my wages between now and March for a perceived shortfall and I’m terrified.

Well your calculation is wrong but without seeing workings I can’t see why.

Tax year 2020/21

Total income 60,000

First 12,500 = £0 tax (personal allowance)

12,500 - 50,000, which is a total of £37,500 at 20% = £7,500 tax

50,000 - 60,000, total of £10,000 at 40% = £4000

Total tax therefore is £11,500

What’s the problem? If the self-employment earned zero then doesn’t that mean everything else is PAYE?

It seems like you’re calculating 40% on the full £60k?

Thanks @Merryoldgoat

I'll show what I've done as I can't work it out.

gross wages until end jan £44000
tax paid (PAYE) £7000
Checking back, within that £44000 gross I paid £3.5k to pensions so £40.5 is taxable

projected until end march (next two pays) wage £9800
projected tax £3800 (if they continue to tax my whole wage at 41% as they are just now)
Should have about 1.1k of tax within that

Can't work out what I've done wrong on the calculations

First 12.5k @0% = £0
12501-14585 @ 19% so that's £2084 of salary at 19% = £395
14586-25158 @ 20% so that's £10,572 of salary at 20% = £2114.40
25159-43430@ 21% so that's £18,271 of salary at 21% -= £3837
43431-15000@ 41% so that's £10,500of salary at 41% if using gross pay, it's £5800 at 41% so £4300 or £2400

Readding it seems like I'd added the tax free amount to my tax due so I get that now - it seems I'm due to pay roughly 10.6k this year based on gross (and less if on taxable only).

My huge worry seems to be that I've tipped into the 41% rate (lucky, I know) but since it's late in the year HMRC have said my entire wage is taxed at 41%. This means with tax, NI and pension I lose 60% immediately and it doesn't seem right!!

when I wo

Where are you based?

Tax is cumulative so I don’t really understand what’s going on?

If you have three PAYE jobs then you’ll only get your personal allowance on one job and the rest will be basic rate or higher rate.

I’m not a tax adviser - I’m an accountant working in industry and run payroll so know the theory and how it’s processed.

Is all the above split across several employments?

but since it's late in the year HMRC have said my entire wage is taxed at 41%

Have they sent you a letter that says this? Where has that come from?

Ops in Scotland so the percentages are as in ops second post.

Are you calculating your NI correctly? You pay 12% on earnings between £183 and £962 pw (£793-£4,168.66 pm). Unlike tax, it's calculated weekly or monthly, whereas tax is calculated over the full year.

I assume you're in Scotland, where the 40% band starts at a much lower level than in England (about £7k a year lower) and therefore there's a bigger overlap where you're paying both NI and tax.

I thought the 41% band had been abolished in Scotland though, so you might be a bit out there. Check that you're using the right rates and bands for 20-21, OP!

I think it looks more like this:

Total earnings, including projection to end of tax year, £53,800

(Less pension of £3,500)

Taxable pay £50,300

(less personal allowance £12,500)

Tax is due on £37,800

The first £2,085 is taxed at 19% = £396.15 tax

then £2,086 to £12,658 (£10,574) @ 20% = £2,114.80 tax

£12,659 to £30,930 (£18,271) @ 21% = £3,836.91 tax

£30,931 to £37,800 (£6,869) x 40% = £2,747.60 tax

Total tax due for year 20/21: £9,095.46

(Less tax paid to date £7,000)

Tax due for remainder of year: £2,095.46

That's so different from your figures, OP, that I'm really doubting myself, especially as I was too lazy to stir myself from the sofa to get a pen and paper, which is always a bit risky for me.

I look forward to being corrected!

I got the rates & bands info here www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past

When I'm working, I have access to a benefit calculator that is very good at working out net pay, but I'm not sure if it works for Scotland.

PM me if no-one else comes up with a definitive answer, and I'll check it out for you on Tuesday!

Thanks folks I’ve not disappeared.

I haven’t taken NI into consideration at all tbh. I’ll look again.

I’m in Scotland and the tax websites mentioned 41% but will double check.

I’ll come back with figures again later. I’ve closed down the laptop to make tea!

This website gives very very similar numbers to Lakie.
Adjust your total income to match your correct income.
NI will be payable on each income that meets the threshold.

Thanks @LakieLady

Pension contributions 4682
Tax paid by year end 10382
NI I’m not worrying about it comes off automatically at a set rate it’s the paye being wrong that messes with me
This seems higher!

OP - look here

www.moneysavingexpert.com/tax-calculator/

This has a Scotland Option - looks like @LakieLady is pretty much bang on.

Well, bugger me - it looked so different, I wondered if I'd added in your personal allowance twice, OP. Thanks for that. @Merryoldgoat

I'm a benefits adviser, but I wonder if I should retrain in payroll now!

Thanks everyone. Appreciate that @LakieLady

It seems the amounts they’ve said they’re taking means I’ll overpay but I can’t do anything until that happens.

Dreading fixing this next year when on mat leave too!!

@LakieLady

Well, bugger me - it looked so different, I wondered if I'd added in your personal allowance twice, OP. Thanks for that. *@Merryoldgoat*

I'm a benefits adviser, but I wonder if I should retrain in payroll now!

Don’t - it’s really boring 🤣🤣

@NamechangeTTC

It will be easy to sort.

Once you have your final March payslips contact HMRC and tell them you’ve overpaid on PAYE owing to multiple employments and they’ll tell you what’s needed.

Fun fact: my DH had been on Basic Rate tax (incorrectly l) when I met him and had been for 5 years. Over £5k rebate. He had no bloody clue.

I’m hoping to get a “normal” tax code next year too. I’m on less than the normal allowances despite having additional that should make it better (uniform washing, professional fees). Ugh!!