How do i know if i am paying to much tax and national insurance?

Question

i am worried that my partner has the wrong tax code as it seems to be extortionately high for his earning also the same goes for his national insurance i was wondering if it could be that he is paying a single mans amount, although we have a family but are not married I'm useless at these things anyone who could help we would be very grateful

Answer 1

try this http://listentotaxman.com/

Answer 2

if you think you are paying to much tax contact the DWP a.s.a.p they are the only people who can deal with the issue. For advice speak to citizens advice.

Answer 3

Tax code has nothing to do with earnings,   The code is the amount of allowances he has.. to be set against his earnings and to determine how much of his pay is taxable...   The higher the number , the more your allowances are,  and the less tax you will pay,    NHI   charges are a percentage of earnings.   The more you earn,  the more you pay  up to a maximum.  There is no allowance now for being married   . That has been abolished.    He should get a statement  each year from the tax office  telling him of his code for the following year  and how it is calculated    . Usually comes  February/ March time.  to cover next tax year from April,   Does he have this???    If so and he thinks it's wrong  then contact    tax office,  

Answer 4

Hi,

As already mentioned married allowances etc ceased to operate several years ago now and the tax code only gives you your personal allowance for the year i.e. the amount of earnings that are tax free.

Currently, the standard tax code is 543L (this is due to change to 603L in September) and this means that your personal allowances for the year are £5439. Again, as mentioned before this standard tax code will change based on any taxable benefits that you may receive e.g. in my case health insurance, so I have a lower tax code, meaning I pay more tax.

The other point that I note, is that your husband pays a large amount of National Insurance (NI) - now NI is independent of the tax code and is based on age and what pension type you may pay into. The standard NI code letter is A.

So, if your husbands NI contributions are high, then it's likely that it's because he's in the enviable position of earnings a lot money... one that I'd very much like ;)

If you'd like to check your husband's payslips then HMRC provide a free calculator:

http://www.hmrc.gov.uk/calcs/paye.htm

Sorry that I couldn't be more specific as to what exactly was the cause of the high deductions. If you'd like you could give us his tax code and NI Code Letter and whether or not he is a director, as this can have some bearing.

Hope this helps.

Answer 5

Simple answer, pop into your local Tax office or call them, they are friendly people and will help you.( no appointment needed)

They helped me.

Answer 6

Either check their website (http://www.hmrc.gov.uk/), where there are some explanations, or if that does not explain things, give them a ring, there are regional office number on the 'contact us' part of the site, who have always been helpful to me in the past!

Answer 7

It is correct that he be taxed as a single man. There are no family tax allowances any more, for wife or children. In the days when a man could claim for a spouse, they did have to be legally married, a common-law wife didn't count.

The www.listentotaxman is a good one. Check out his payslips on that. A is the normal letter for NIC, unless he is contracted out, pension-wise.

At a rough guess, he has a low tax code because he has benefits at his employment? Could be, say, a company car, fuel benefit, or private health care? He should have forms P2 (notices of coding) showing how his code numbers are made up.