Payroll

Paying tax

We are obliged by law to deduct income tax from your salary based on your tax code issued by the HMRC using the PAYE system.

Tax codes and allowances

You can find your tax code on your payslip in the top right hand corner.

If your tax code is 810L, you are entitled to £8100 tax-free allowances during the course of the tax year (2012/13). This will be in 12 equal amounts.This does not mean that you do not pay tax until you have earned £8100.

If your tax code is 810L mth1 you are entitled to £675.00 tax free allowance for that month. However, your allowance will not roll over to the following month.

BR means that you are being taxed at Basic Rate (20%) and are not receiving any tax-free allowances.

Students tax deductions

Many students do not get taxed, because they do not earn enough taxable income to go over the monthly allowance working along side their studies.

This does not mean that students are exempt from paying tax.

Depending on the tax code applied, they will be taxed at different rates.

Students are usually put on a cumulative tax code, which means they can earn up to a limit before being taxed.

Incorrect tax payments

If you think you are on the wrong tax code contact the tax office directly to query your current code or to claim a refund.