Does anyone know much about tax?

[claire1978]

Its with my husbands work, everyone there is up in arms and we think the tax is all wrong

Basically the way I understand it, from April 2013 the tax allowance changed to be allowed to earn an extra £1000 a year or something before being taxed on it BUT no-ones wages have increased this month and when my hubby asked the bosses ex wife that deals with the wages she said no-one is entitlled to extra in their pay packet? :-\

Also my husband has a company van which changes my hubbys tax code and basically it takes off £3000 a year from the amount he can earn before being taxed on it, well my hubbys plan is to buy a cheap car to get himself to and from work in and the way we understand it his wages will increase monthly as his tax code will change and he will be entitled to he full £9000 to earn before tax or whatever it is BUT when speaking to the wages lady about this she told my hubby that even if he gives the van back nothing will change in his wages!!

Can anyone shed any light on this and know the facts, I think my hubby is gonna ring the tax office tomorrow as he has half a day off but was just wondering if anyone on here know, Thanks in advance

 

[Abz1982]

if you have a look on listen to taxman. it can calculate this here.

 

[ClaireLouise]

Plus when did he get paid hun? If it was before 5th April I don't think it would change until Mays pay x

Check this too
https://www.hmrc.gov.uk/incometax/personal-allow.htm

If you have a copy of his P11D that he should receive this month it would list his total taxable income and any benefits in kind. A car is a benefit in kind and even if you use your own car for work purposes you still get an allowance for mileage etc. Within certain limits, you don't have to pay tax on mileage, unlike the situation where you receive a company car.

There is an income threshhold of about £26,000 so then the extra personal allowance wouldn't apply.

 

[Pearls18]

Yeah tax year only change 6 days ago, tax is 20% so all you need to do is get his pre tax annual wage, subtract £9444 (or whatever the new tax allowance is) and then divide the last answer by 5, this number is what he pays in tax for the year. Subtract that from his annual wage and divide it by 12, this will be his monthly wage (bare in mind NI and pensions too). His pay slip should tell you everything, tbh I think it is something the tax office sorts not the company, as far as the company will be concerned he will be getting paid the same, but the taxman will take slightly less! Hope this makes sense!