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bigduckontax
bigduckontax, Accountant
Category: Tax
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in the first two weeks of February 2015 I earnt £5209.96 tax

Customer Question

in the first two weeks of February 2015 I earnt £5209.96 tax taken was £1789.90 is this correct.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Difficult to tell, the problem with PAYE tables is that they tend to assume that you will receive the same amount in March. This has pushed you into the higher tax bracket for the month. This will adjust down to an extent in March, but may create a refund too big for a small firm to make. It will all come out in the wash though at the end of the tax year and any over payment will be refunded by HMRC.
A bit of a pest I agree. The PAYE system is designed to make you tax neutral at the year end. With what would normal fluctuations of pay it does it very well. It falls down a bit where there are substantial variations as has happened to you.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.
Of course, these days the tax tables are held on the Real Time Information system, but the effect remains the same.