PAYE - Am I doing it right?

Kash

Hubby and I got married last year, and I seem to be paying way more tax now than when I was single.

I have been through all the online calculators, but I can't find any that break down how much PAYE tax i should be paying personally.

According to my P60, i have tax credits of 3501 and a rate band of 32885
Assuming that is right, I want to calculate what my PAYE should be, monthly.

So, i'm doing the following:
Gross (taxable) pay per month = 47500/12 = 3937.50
Standard cut off per month = 32885/12 = 2740.42
Tax at 20% = 20% of 2740.42 = 548.08
Tax at 41% = 41% of (3937.50 - 2740.42) = 490.80
Total tax = 548.08+490.80 = 1038.89
Tax credits per month = 3501/12 = 288.09

So, total PAYE due = 1038.89-288.09 = 750.80

Does that make sense?

Geuze

Yes.

I'll assume your sums are correct.

Note: your 2011 P60 shows your 2011 tax credits.

Your tax credits in 2012 may be less.

Also, you should check that the tax credits are correct.

Hungrycol

@Kash, yes your calcs look correct. Revenue are not issuing Tax Certs to all workers as they have done inthe past so best phone them and ask for a Tax cert to be issued. Your husband being the automatic assessable spouse may have allocated your allowances and credits to his pay, cheeky monkey! Your Tax cert will show all this though. Your Pay in Jan shouldn't be greatly less than Dec.

P.S. Never trust online calculators!

Mr. Incognito

Ring Revenue and ask

Are you seperately assessed Y/ N

If jointly assessed who is the assessable spouse?

What way are the credits allocated

Then come back and I'll calc it for you

I hope you are calculating the effect of the USC and Income Levy which come out of the gross pay before anything else

Hungrycol

Mr. Incognito wrote: »

Ring Revenue and ask
If jointly assessed who is the assessable spouse?

The husband is automatically selected as the assessable spouse unless you ask otherwise. However this shouldn't have any bearing on tax credits or standard rate band split because you reamin as is unless you (or your spouse) asked for it to be different.

Mr. Incognito wrote: »

Ring Revenue and ask
I hope you are calculating the effect of the USC and Income Levy which come out of the gross pay before anything else

Income Levy Just USC for 2011.

Kash

Mr. Incognito wrote: »

Ring Revenue and ask

Are you seperately assessed Y/ N

If jointly assessed who is the assessable spouse?

What way are the credits allocated

Then come back and I'll calc it for you

I hope you are calculating the effect of the USC and Income Levy which come out of the gross pay before anything else

Are you seperately assessed
No - jointly assessed


If jointly assessed who is the assessable spouse?
Allocated 50/50

What way are the credits allocated:
3440 for him
3457 for me.

mrs vimes

Hungrycol wrote: »

The husband is automatically selected as the assessable spouse unless you ask otherwise. However this shouldn't have any bearing on tax credits or standard rate band split because you reamin as is unless you (or your spouse) asked for it to be different.

The husband has not been automatically selected as assessable spouse in a long time (although it is possible that there are still some dinosaurs in Revenue).

In cases where the couple fail to nominate an assessable spouse the higher earning spouse in the most recent year for which both earnings are available is assessable spouse unless one spouse is self-assessed in which case that spouse is elected.

mrs vimes

OP, are your credits the same as last year? Did you previously have one parent family credit or rent allowance or something?

When your credits are split as you say then I don't think being married is the reason for the difference.

Kash

Nope, we have the same tax credits as last year (budget notwithstanding)

Maybe there was a mistake last year and i was paying too little as it seems to be set up correctly, and the figure seems right when you do the maths, so I don't think there is any error currently.

Thanks for your help though.

I swear boards is the best place on earth for simple, straight forward advice