This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

High tax and NI deductions

Sole trader
Posts:11
Joined:Wed Jan 13, 2021 9:23 pm
High tax and NI deductions

Postby Sole trader » Thu Sep 30, 2021 2:07 pm

Hello, I would really appreciate it if you could clarify my tax deductions. Originally I am a sole trader my previous turnover is under £50,00 now I am taking less due to the current crises we are going through, I started last Jun working in Hotel as a receptionist, I was taxed 20% of my salary which I understand there is no tax allowance due to my self employment, I left the hotel few weeks ago for another job as a driver working for a recruitment agency (weekly pay) the Tax and NI is way to high could you please let me know why I am paying all this money for. Thank you for your help.
Gross pay :
£693
NI :
£61.08
Tax:
£181.40
Net Pay:
£439.96
Tax code : K642

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: High tax and NI deductions

Postby Jholm » Fri Oct 01, 2021 8:50 am

First port of call is to check your coding notice to see how that tax code has come about.

Sole trader
Posts:11
Joined:Wed Jan 13, 2021 9:23 pm

Re: High tax and NI deductions

Postby Sole trader » Fri Oct 01, 2021 12:10 pm

Hello, thank you for your reply, with who I need to check my tax code, I called the employer they don't have a clue do I need to contact HMRC. Thank you

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: High tax and NI deductions

Postby Jholm » Fri Oct 01, 2021 12:51 pm

You should receive a copy in the post whenever it is changed. It is known as a P2 coding notice.

If not, register for and sign in to your personal tax account and you can obtain copies.

Otherwise, ring HMRC on 0300 200 3300, asking for a breakdown of your current tax code. This might be a better option so you ncan discuss with them and adjust if applicable.

The K at the start of the tax code denotes a negative personal allowance.

There are often teething problems with tax codes between jobs.


Return to “Income Tax”