Confused on how much tax I will have to pay a month ?
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Hi I recieved a letter saying I need to pay back £846,41 as apparantly I havent paid enough tax but i am having touble understanding it. apparantly I owe £846.41 from a previous tax year. but they have now recduced our tax free amount to £4232.00 (it was £8105) it says i am expected to pay 20% on an extra £4232.00 this year, which should collect the amount I owe. (£4232.00 x 20% is £846.41) it then says tax due on this is £1537. By using the tax code K152 the employer will add this to your income. I am trying to work out how much tax I will be paying each month for the year I do not understand what this means if anyone can help me understand this I would be very greatful thank you x
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Answer:
See www.listentotaxman.com and make the year 2012/13 (right at the top), fill in the section for you tax code, and your salary (without that it's impossible to answer your question). That should give you the necessary info.
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