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Sam
Sam, Accountant
Category: Tax
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I want to check my last couple of payslips to ensure I'm

Resolved Question:

Hi, i want to check my last couple of payslips to ensure I'm paying tax correctly. Since April 4th I've been earning £75k per annum, Take home £4247.27 a month.
This month i have been given a pay rise to £105k per annum, also a £485 car allowance.
Can you tell me what i should receive this month after tax?
Is the car allowance tax free? Or will tax and NI apply?
Submitted: 7 months ago.
Category: Tax
Expert:  Sam replied 7 months ago.

Hi

Thanks for your question

The car allowance is subject to tax and national insurance and this month your tax and national insurance should be Gross income £9285 - Tax £3004 and national Insurance £464 leaving you £4643 take home (and please note from 06/05/2017 - you will lose some personal allowances as your total income will be in excess of £100,000 and then for every £2 over £100,00 you lose £1 of personal allowance

let me know if I can assist further

Thanks

Sam

Customer: replied 7 months ago.
Hi Sam,Thanks for the response.Wouldn't my gross income be £8750+485 = £9235
And pay should be at least £1000 more than £4643??I need these figures accurate
Expert:  Sam replied 7 months ago.

Hi

Apologies the new gross month for salary is £8750 plus £485 car allowance = £9235 a month (not £9285 previously advised)

So Tax £2937 and NI £462.37 total deductions £3399.37 which leaves you a take home of £5835.63 - the very early hour and unusually heat for the UK - has clearly affected my ability to operate a calculator! Many apologies

Thanks

Sam

Customer: replied 7 months ago.
Thanks Sam.Would my tax code normally change with being on £105k plus a car allowance?
Expert:  Sam replied 7 months ago.

Hi

Thanks for your response

Not initially no - as HMRC will not be aware of how the pay rise and the car allowance affects your tax position (unless you have been in touch with them for this or any other reason) and you advsie you are just getting a car allowance (although did you previously have a company car? or other company benefits as this would affect a change)

HMRC will not action the increase pay until after 05/04/2017, when they become aware that your personal allowances need restricting as the combined position sees you way in excess of £100,000 (in fact £110920 which is 10920 /2 = 5541 from £11,000 allowances - so a restriction to £5459 allowances)

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13779
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and 2 other Tax Specialists are ready to help you
Customer: replied 7 months ago.
Hi Sam, that tax figure still seems off, shouldn't it be £2793.47 not £2937?
Expert:  Sam replied 7 months ago.

HI

No that tax is right

Thanks

Sam

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