Am I being tax'd too much? 26%? ? Commision week.?

Question

So, I get paid weekly and get £240 a week before tax, I worked out my tax was 17% incl PAYE , Ni for that. However, then It comes to commision week and before Tax It was £912. However, After tax I only saw £675 of it :/ Now That seems its a total of 26% Incl PAYE, Ni?

Can Anybody help me out? Is this correct or am I being tax'd too much! Its painful to see the amount of money going to the british government! Scum!

Answer 1

You can't calculate tax as one percentage - it doesn't work that way.

The first £105 income each week is tax free (personal allowance of £5,435 per annum, increasing to £6,035 in September).

Anything over that is taxed at 20% and 11% national insurance.

Thus with gross of £912, only £807 would be taxable/subject to NI at a total of 31%. Hence a net pay of approximately £662. It may actually be you aren't getting taxed enough (although it's probably just rounding differences from working out weekly/monthyl/annually).

It is painful I agree - I would love to know how much goes out again on benefits and tax credits. Can't believe how many people think it is ok to be getting hand outs like that and only working 16 hours a week as it's no benefit to them to work more. Pathetic.