So I have recently been promoted to Leading Hand and was owed almost a years back pay.

This month I have been paid £8700 before tax.
And after tax around £5700

Now firstly this seems like too much tax to me although I am not certain. If the tax is to much am I correct in thinking that next month I pay less tax and it balances out?

Thanks for any helpful replies I receive in advance.
your tax rate jumps up because the HMRC suddenly think you have received a massive pay rise. The tax you pay will be abated over the next few months. If you want to double check phone these guys (you'll need your NI number etc):

[SIZE=-1]Phase 2 Building[/SIZE]
[SIZE=-1]Ty Glas[/SIZE]
[SIZE=-1]CF14 5FN [/SIZE]
[SIZE=-1]0845 300 3949 [/SIZE]
[SIZE=-1]029 2068 9130 [/SIZE]

I know its Wales but they deal (or used to!) with all HM Armed Forces tax issues.

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