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Am I paying too much tax? watch

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    Hi

    I have just started work in a new place and I have been placed on the OT tax code.

    Paying over 300 pounds in tax which is too much. Plus my employer is making adjustments to my salary by taking a further 200 pounds which I am not sure why, so they are taking money off me too.

    I was on a different tax code in other jobs and never paid that much.

    How would I resolve this?


    P.s annoys me a lot when you work hard and can't even be paid properly
    • Very Important Poster
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    You need your tax code change. For most people, it's 106L. (or something like that)

    Some of what you're paying is national insurance.
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    What are your other deductions? Should say on your payslip
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    Are you paying back a student loan? You only pay this back if you earn over £21k per year under the new system or roughly £17k under the old system. It's worked out weekly.
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    (Original post by OU Student)
    Are you paying back a student loan? You only pay this back if you earn over £21k per year under the new system or roughly £17k under the old system. It's worked out weekly.
    Yeah I do owe student loans

    But 200 pounds per month seems a lot for the salary I am on
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    (Original post by firestar101)
    Yeah I do owe student loans

    But 200 pounds per month seems a lot for the salary I am on
    Yes, it's 9% of the figures I quoted. It sounds as though you're on emergency tax.
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    https://www.gov.uk/tax-codes/letters...what-they-mean

    have you handed your P45 to your employer?
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    Anything OT or BR is emergency tax, so unless you have 2 sources of income, it's wrong. Mine is 1060L so I can earn 10,600 before tax
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    How do I get it changed

    Do I tell my employer to change it
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    (Original post by firestar101)
    How do I get it changed

    Do I tell my employer to change it
    Call HMRC.
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    (Original post by firestar101)
    Hi

    I have just started work in a new place and I have been placed on the OT tax code.

    Paying over 300 pounds in tax which is too much. Plus my employer is making adjustments to my salary by taking a further 200 pounds which I am not sure why, so they are taking money off me too.

    I was on a different tax code in other jobs and never paid that much.

    How would I resolve this?


    P.s annoys me a lot when you work hard and can't even be paid properly
    What you most likely haven't done is complete a Starter Checklist for your employer, or passed your form P45 to them from a previous job this tax year, if applicable. You need to do this to give the information that they need to apply the correct tax code for your pay. The "0T" tax code assumes that you have another job against which the whole of your annual 'personal allowance' of income that you can receive without deduction of income tax has been set. It would be helpful if you could let us know whether this is your first job this tax year (i.e., since 6 April 2015), together with your income and other associated deductions from this payslip. If you've had any other income to date this tax year, please also let us know that.

    You can download a Starter Checklist from HMRC if your employer hasn't provided one to you: https://www.gov.uk/government/public...rter-checklist

    (Original post by OU Student)
    You need your tax code change. For most people, it's 106L. (or something like that)

    Some of what you're paying is national insurance.
    1060L is the 'standard' tax code - essentially, you take the personal allowance that it represents (in this case, £10,600) and divide by 10, then add a letter depending on your individual circumstances.

    (Original post by Darien91)
    Anything OT or BR is emergency tax, so unless you have 2 sources of income, it's wrong. Mine is 1060L so I can earn 10,600 before tax
    While I get what you're trying to say, that's not actually what "emergency tax" means. The emergency tax code for 2015/16 is 1060L, i.e., the standard tax code, followed by M1, W1 or X. 0T is indeed a temporary tax code, though, or another form.

    https://www.gov.uk/emergency-tax-code

    (Original post by Reue)
    Call HMRC.
    Ordinarily, employers should correct tax codes without employees contacting HMRC, once they receive the necessary information from a form P45 or Stater Checklist.
 
 
 
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