help me!!!!! tax is driving me nuts........

[lcg]

right...here's a question for all you abers with lively minds. i have 4 (yes 4!) different contracts with my employer.

Contract 1: TAX CODE 839LCUMUL (Monthly Wage: 893.19) Nurse
(25,528 p.a.) (PAYE: 109.60)
(NI A: 149.70)

Contract 2: TAX CODE BR CUMUL (Monthly Wage: 653.52) Teacher
(26,556 p.a.) (PAYE: 221.20)
(NI A 132.78)

Contract 3: TAX CODE BR CUMUL (Weekly Wage 338.50) HCSW (Bank)
(17,253 p.a.) (PAYE: 67.80)
(NI A: ------)

Contract 4: TAX CODE BR CUMUL (Weekly Wage: 200.50) Nurse (Bank)
(21,798 p.a.) (PAYE: 40.00)
(NI A: 16.38)


Here are some facts:
Contract 1 is my part time nursing job (15 hours weekly).
Contract 2 is my teaching job (18.75 hrs weekly) paid at a higher rate. Contract 3 is my agency support worker contract and;
Contract 4 is my agency nurse contract.

Here are some questions:
1. Should my tax allowance be on contract 1 or 2? Which woould give me the higher return....or will it make no difference?
2. Are all the BM CUMUL rates correct? What happens when you have that many contracts about tax?
3. is my tax and NI correct? ever since i got my 4 contracts, i haven't been able to work out my arse from my elbow. any help is appreciated....lotsa love.....lisa x

[factor-fiction]

It shouldn't make any difference which one is classed as your main job. BR seems right for the other jobs. The amounts deducted for tax seem okay for 3 of the jobs but tax and NI look too high for Contract 2 as they far exceed 20%- but maybe too little tax was taken early on so now there is a catching up process.
If in doubt, ring HMRC

[craft1948]

I can't even agree your monthly and weekly figures to your annual ones........

[factor-fiction]

I think the annual salaries quoted are the full-time rates but as lgc works part time she receives prorated amounts and these are the figures shown as monthly wage

[Flyhalf]

Either 1 or 2 would do for the "main" code - whichever is the more likely to continue. DON'T TRY TO CHANGE MID-YEAR, WAIT TILL JANUARY TO SORT OUT FOR 2013/14.
You're underpaying on 3 and 4, which should be at 40%, not 20% (1 and 2 come out with about £200 @ 20% underpaid, which can be dealt with by a minor adjustment to the main code.
Contact hmrc with the figures, and they OUGHT to be able to sort it all out. First get 3 and 4 onto code D0.
Basic personal allowance is 9205, but your code gives 8939. Is there an adjustment already for the HR element of 1 and 2? If so, it would be better to leave them alone until year end.
Have you claimed all allowances and reliefs, eg professional subs?

[Flyhalf]

Scrub that - I've worked on the "p.a." rates given. Need to go back to the drawing board.

[factor-fiction]

It's not clear, BigJack, from the way this has been set out but I'm not sure whether lcg's pay actually takes her into the 40% tax bracket given that ta least 3 of the jobs are only part time. I'm not clear whether the figures are right for Contract 3 as they suggest she works full time on that job.

[factor-fiction]

Sorry, bigjack- your latest post wasn't there when I started typing

[Tinker,Wales]

If the figures you give are accurate then you are going to end the year in debt to HMRC. Your first employment (the one with the 839 tax code) will pay you more than you taxable allowances (839*10= £8390) so you will end up paying a small amount of tax on that (on the figure over £8390)
Your total income (my calculation)
893.19*12 = 10,718
653.52*12 = 7,842
338.50*52 = 17,602
200.50*52 = 10,426
Total = 46,588
This puts you into the higher rate tax bracket on some of your earnings, so if none of your tax is calculated with a code of D0 (as someone stated above), you will end up underpaying tax this year, and HMRC will claw it back in later years, and adjust your tax rates to avoid an underpayment in future.

[Flyhalf]

Oddly enough, your tax should be right, but doesn't seem to be.
Overall, I make your aggregate salaries to be £46239, which would keep you out of higher rate.
You should stick with 1 as the main employment. All allowances will be used there, and every other source can be BR.
3 and 4 are OK.
2 SHOULD be OK, but tax deducted should be about £170, not £221, which is 33%. Any chance you've accidentally added tax and NI for this figure?
Last, No.1 - where to begin? Annual amount £893.12 x 12 = 10718; deduct coding allowance £8939, leaves ££1779 charged at 20% = £355.86 for the full year. Can you clarify?

[craft1948]

BJ why should it not attract the higher tax rate..................surely that comes in at £35k

[Tinker,Wales]

BigJack:
According to this site: http://www.hmrc.gov.uk/rates/it.htm
Higher rate tax (40%) starts on earnings over £34,370 pa (after allowances)
Allowances of £8,390, plus earnings at BR of £34,370totals £42760, which is lower than total earnings, so some is due at the 40% rate.

[lcg]

hi guys - for my contracts 3 and 4...they are example weeks - i do not do that amount of work every week. i just wanted to check that the tax and ni taken from those weeks are right. hth....lisa x

[lcg]

i usually only get contract 1 and 2 every month as my bsaic wage. contracts 3 and 4 are weekly paid ONLY if i decide to do overtime (which is only every now and then otherwise i'd be dead of over work!! so...i'm definately under the 40% tax bracket!!!

[Flyhalf]

Tinker and craft
Agreed, I looked at the figure with PA included,
I'll drop out now, as I'm extremely rusty on this - haven't worked a tax calc for 5 years or so.
I might have a go at reworking it when the job No.1 details are clarified, but won't be advancing any opinion until I've seen other comps.

[twix123]

1. It doesn't matter which contract your tax allowance is set against as your tax free allowance is £8390 and each contract pays more than this.

2. Basic Rate tax being deducted from the remainder of your contracts is correct although with your total income you should be paying higher rate tax, therefore I assume that you complete a Self Assessment return each year in order to pay the extra amount due. Your tax office could issue a new higher rate tax code for any two of your four jobs to enable the majority of the extra tax that you are due to pay to be deducted at source.

3. I haven't currently got copies of the Tax and NI tables available in order to calculate the correctness of your figures.

[1eyedjack]

I think that the chances of the PAYE system correctly calculating the deductions for a higher rate taxpayer in 4 jobs can be consigned to the back of a postage stamp. I hate to say it, but in this instance you might be better off registering for self assessment. At least that way the tax will work out right, albeit perhaps a bit in arrears. Possibly RTI would better serve you, when that beds down correctly. NIC, now, that is a bit of a nightmare.

[factor-fiction]

I think the chances of her falling into the higher rate bracket are pretty slim though. She has two main part-time jobs which take up 35 hours a week and for which she earns approaching £20000 a year. Lgc is also registered with 2 agencies for which she does occasional work. Given the hours she works in her two main jobs I can't see her working enough 'agency' work to bring her into the higher tax bracket

[Flyhalf]

lcg76
Now that I have the advantage of seeing your last two comments:
Your tax codes are correct. What is probably driving you nuts is your employer's pay system.
Just check that tax on Contract 1 is in fact around £130, not £221.
Last, you are getting basic personal allowance. I would have thought the nature of your work would involve being a member of one or more professional
bodies, and you may be able to claim subscriptions against tax. See link, check under "N" for nursing bodies.
http://www.hmrc.gov.uk/list3/list3-n.pdf
You can also claim for the last 4 years if no allowance has been given. (it used to be 6!)
http://www.hmrc.gov.u...adlines-taxpayers.htm