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I think my tax is wrong - why am I paying more this month?

I think my tax is wrong - why am I paying more this month?

I think my tax is wrong as I am paying more tax this month but earnt the same as last month. Please can you check the calculation?
 

In this situation tax is not incorrectly calculated. Tax is usually cumulative which means in each month, the tax calculation uses the total taxable pay paid to the employee since April (the start of the tax year).

The tax due in that particular tax month will be the difference between the total tax amount due (year to date) minus the total tax amount already paid (year to date).

The difference in tax due each month will fluctuate, depending on factors such as when the employee joined the company and if the employee has had any variable payments within certain months of the year such as bonuses, commission and allowances.

What should I do next?

Please contact Sara Morais if you would like to explore how our dedicated Payroll Team can help your business with payroll services.


First Published 14 October 2020
Last Updated 14 October 2020

14 October 2020
First published.

Find out more about Sara Morais

Sara Morais

Sara Morais

Sara is a Payroll Manager

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