At CWR we can take the headache out of monthly and weekly payroll by maintaining all your wages records including payslip production and attending to monthly PAYE settlement. In addition we can complete end of year return forms P11D for submission to the Inland Revenue as part of a competitively priced package.
Many people do not thoroughly check their pay slip to make sure they are on the right tax code and many could be paying hundreds of pounds in more tax than they need to be.
Sorting out your taxes can be a baffling and frustrating process. Whether you are a employee or employer.
Unfortunately for some people they end up paying the taxman much more than they need to as a result of being on the wrong tax code.
It is important to check what tax code you are on and if it is correct.
Your tax code is used by your employer to work out how much Income tax should be taken from you pay.
HM Revenue and Customs will tell your employer which code to use to collect the tax.
Your tax code will normally start with a number and end wth a letter, the numbers within the code represent the amount you can earn before you start paying tax – this is know as your Personal Allowance.
Most people will be on the new tax code for this year, which is 1185L.
The number in the tax code refers to your Personal Allowance and for this financial year the ‘1185’ means you can earn £11,850 without paying any tax. The L at the end of the code means that you are entitled to the standard tax-free Personal Allowance.
The 2018/2019 tax code of 1185L is an increase in Personal Allowance from last year’s £11,500 to £11,850.
However, if your tax code is BR, you will want to contact HMRC to make sure this is correct. This is because the BR code means you are not given any Personal Allowance and as a result are being taxed at 20 per cent on everything you earn.
You might be eligible for tax-free allowances depending on your type of employment or source of income.
If you are self employed you might be eligible for the first £1,000 of your income.
You could also get allowances for the first £1,000 of income from property you rent out.
You may also be eligible for different allowances if you are married or in a civil partnership depending on your partner’s income.