My tax code has changed to 747L and my wages went up by 50GBP a week, is this right?
Is it possible that my tax code changed to 747L and my wages went up 50.00GBP per week?
Im scared that I will underpay my tax, my agency says that it's correct. I'm on 13.5GBP per hour and was getting around 400.00 GBP per week, now they have changed my tax code and it's 450.00 per week. Is this correct?
sorry, my tax before was 646L/W1.
Basic Pay : 499.50
Gross Pay: 499.50
Tax: 7.79
NI: 43.26
Total deductions: 51.05
Net Pay: 448.45
Your tax code shows how much your personal allowance is,this is the amount of taxable income you can receive before you start to pay tax.
From 6th April this increased by £1,000 from £6,475 to £7,475 and at the same time the national insurance limits became more generous for those earning around £24,000 a year and under. This combination means you are paying around £50 per week less income tax and national insurance, hence why your net income has increased.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find an IFA please go to http://www.unbiased.co.uk
Danny Cox, Certified Financial Planner CM, Hargreaves Lansdown, www.H-L.co.uk
