Not enough tax paid

Discussion in 'Army Pay, Claims & JPA' started by cheggarsRE, Aug 3, 2010.

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  1. This month i for some reason have paid £200 less tax then i have ever paid before....do i have to let someone know or will the tax man kindly deduct it next month??

    If it helps i got my 8 year money paid in last month so if i'm right in thinking the tax man believes i have paid all of my tax for this year at that rate so my future rate has been lowered?? If so that is not a problem as i assume my tax will just be more next year.

    If anyone can shed any light or believes they need any more info then please feel free to PM and i will try provide however my last pay statements read as:

    May:
    total payments - 2396.64
    PAYE 371.80
    NI 181.07

    June:
    total payments - 2411.62
    PAYE 372.00
    NI 181.07

    Then i got my 8 yr money which was £5000 and out of that about 1600 deducted through tax and NI

    July:
    total payments - 2411.62
    PAYE 126.20
    NI 181.07

    See what i mean bout the big diff??? i go on tour in 2 weeks and don't want a massive fudge about with my wages cuz of it what with saviing for a sprog and all...
     
  2. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    Given that we're only a quarter of the way through the financial year, it's unlikely that the Tax Man will think that you've paid all of the tax that you're due to pay this year.

    It does sound as though there's been a problemette with your pay. Just to be on the safe side, have a word with your Pay Clerk.

    Good luck with the tour.
     
  3. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Has your tax code changed?
     
  4. no my tax code hasn't changed as far as i see....
     
  5. Nope - but a large wedge of cash in one month will distort the tax calculations. You'll pay much more that month in tax and then slightly less over the next few months until it sorts itself out at the end of the year. By my calcs you are well inside the middle tax bracket (even if your personal allowance is nil) and, because it is early in the year, you will have paid 40% on most of the 8yr lump. So you are due on the order of £1000 (no more, possibly a bit less) back from HMRC (You'll have paid 40% rather than the 20% basic rate.)

    I'd need the precise figures to work it out (which I don't want - it's your own business etc, etc) - £200 back this month isn't unreasonable (seems a little high but that depends on your tax code) - but it's the overall for the year that needs to be correct.
     
  6. If in doubt ring the tax office in Cardiff and have a chat with them - saves finding out that you owe them some money.
     
  7. It is perfectly normal for your tax to be a'all over the place' after you have received a bonus. It will be back to normal 2-3 months after getting your lump sum.

    Nothinhg to worry about, but good to know that you read your SOE