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Topic: Tax/ wage query  (Read 1183 times)

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Tax/ wage query
« on: March 12, 2010, 09:04:14 PM »
Hello

So My wife lives with me here in London now. She transferred with her company from the US.

She's making a pretty good wage but for some reason i think shes getting taxed too much. I dont really understand how it works as far as how much tax/ national insurance you pay per month so it may actually be OK.

Her gross income per year is 48000 but she only ever takes home 2350 per month.

Does this sound right? Her tax code is different to mine but im not sure if this makes any difference.

Thanks!


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Re: Tax/ wage query
« Reply #1 on: March 13, 2010, 09:01:47 AM »
She is being taxed right at 41%, which represents the high rate bracket she is in.  She does not seem to be getting credit for the lower rate bands so it does seem she is taxed too much. 

There isn't much she can do now as the end of the tax year is in 3 weeks.  She can easily apply for a refund once she gets her P60.  She needs to check her tax code for 10/11 to make sure this isn't going to occur again.


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Re: Tax/ wage query
« Reply #2 on: March 15, 2010, 08:24:56 PM »
Thanks for your reply. I'm not great with tax stuff so I'm failing to understand.

You think she is being taxed too much?

What should she being taxed? Her tax code is O T N which is different to my one.

I've been on the tax calculator and it tells me she should be taking home 2800/month.

Whats is the process for applying for a refund? How can we prove that shes been getting taxed too much?

Sorry for all the questions!


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Re: Tax/ wage query
« Reply #3 on: March 15, 2010, 09:22:19 PM »
If she is going to pay UK tax on the remittance basis she gets no personal allowance so this may be the correct code...


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Re: Tax/ wage query
« Reply #4 on: March 15, 2010, 10:37:28 PM »
Regardless of loss of PA, she should be getting the benefit of the lower 20% band.


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