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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4329
Experience:  FCCA FCMA CGMA ACIS
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I've been working in the UK for two years. I currently earn

Resolved Question:

Hi, I've been working in the UK for two years. I currently earn £105,000 a year and contribute £616 to my pension. My tax code was recently changed from 1106L to K837 with the result that I now get almost £600 less out after tax than I did last year this time (my salary did increase over the £100,000 in May but this change has only been for the last 2 months). My monthly income tax is now £3,323.26 and I'm not sure why it is so high. It also fluctuated month to month and is approx. £400 more than it was last month even though I was on the same tax code last month already. I called HMRC and they said this is because I earn over £100,000 but it still seems wrong to me.
Submitted: 29 days ago.
Category: Tax
Expert:  bigduckontax replied 29 days ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

If your taxable income is above 100K per annum you begin to loose your personal allowancw at the rate of a pound for every 2 quid over. You have been placed on a K code to recover underpaid tax. At the end of the tax year you should carefully check HMRC's calculations to ensure that they are correct. Deductions tend to be inaccurate at high income levels as the tax tables frankly do not cope.

I do hope that you have found my reply of assistance.

Customer: replied 29 days ago.
Thanks Keith. How would I check that their calculations were correct at the end of the tax year?
Expert:  bigduckontax replied 29 days ago.

Just Answer is refusing to let me amend my post. Paragraph 2 line 1 should read 'allowance.'

Customer: replied 29 days ago.
Thanks Keith, How would I check that their calculations were correct at the end of the tax year?
Customer: replied 29 days ago.
Is there nothing I can do if I feel their calculations are incorrect now? Also, is it right that the amount of tax I'm paying each month is moving? Since this is based on my annual salary, should it not be the same for each month?
Expert:  bigduckontax replied 29 days ago.

They will advise you when you make your self assessment tax return, alternatively check your P60 for accuracy. There is little you can do within the tax year. As I warned you tax tables tend to be inaccurate at high salary levels.

I would love to speak on the phone to you. but I am responding to your query from a temporary base in Germsy (don't mention the war).

Customer: replied 29 days ago.
Thanks Keith
Expert:  bigduckontax replied 29 days ago.

Delighted to have been of assistance.

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4329
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  Sam replied 29 days ago.

Hi

I tried calling you but you did not answer to make the connection - did you still wish to proceed with a telephone call?

Thanks

Expert:  bigduckontax replied 29 days ago.

Thank you for your support.