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Reply to: Too Much Tax

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Previously on "Too Much Tax"

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  • boredsenseless
    replied
    If she has declared to the IR that the other job is a second job she will have a K code tax code this has no tax allowance so this could be one reason.

    If she doesn't and you aren't using a K code for her you'll probably find that you actually owe more as you have used her personal allowance twice.

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  • xoggoth
    replied
    She should get back 3 years tax at least. Just write to the IR with details of her salaries, other income, any relevant expenses etc plus your calculations of what tax should be and what she did pay. Make sure she has has overpaid tax (& NI) don't want a wrong calc that ends up with her paying more!

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  • BoredBloke
    replied
    I don't know off hand waht her tax code is, but if it turns out that she has been paying too much, how likely is it she will get it back. It has been going on for a couple of years, it is only recently she complained to me about it. based on the amount she came out with, I had assumed that her job was really sh1t instead of just being sh1t.

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  • xoggoth
    replied
    What's her tax code? Each company should only be calculating her tax on the tax code supplied to them. With a normal code of course that would mean she would get 2 lots of tax free pay, 2 lots of 10% limits etc.

    Has a K prefix code for one of the employents? I believe that is the normal way of taking extra tax to account for a 2nd job. Basically it adds to taxable pay unlike a normal code that gives you an amount of tax free pay. It's no more than a rough and ready method which may result in extra tax but she can still claim any overpayment back at year end.
    Last edited by xoggoth; 6 September 2005, 16:50.

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  • Rebecca Loos
    replied
    surely the total tax should be calculated on her total income, i.e. gross from YourCo + gross from her other employer. So £1,600 a month in total -> £19,200 a year

    According to very rough estimates, total tax on that should be around £4,000, and NI approx £2,800, for the whole year.

    If it is more, maybe her other employer has informed the IR of her additional income (without knowing exactly what it was) and therefore she has been put on a temporary tax code? Have you checked her tax code on her employers payslip? Is it a normal one e.g. 461L or something?

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  • BoredBloke
    started a topic Too Much Tax

    Too Much Tax

    As is the norm for many on here, my wife is my company secretary and is paid a small amount by my ltd company. However, she also works and although the job is not well paid, seems to pay a lot of tax on her permie salary. Gross she gets about £1k per month. After tax this drops to £600. She was told that the reson for the high tax take was because of the wage from my company. But I only pay her £600 per month(before tax). Is that a normal amount for her paye salary to have taken out or has my accountant missed something here?

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