I know this is not the right forum for this kind of question but from the other side I am sure some of you had similar experience and will be able to share advice.
Over Christmas/new year period I was usually under payed (missing hours etc…) finally when I demand my money back they just get it all together and BANG! add about 400£ quid extra one week. I become one day millionaire this way… and it would be all good if not expenses/taxes.
I was payed that week nearly 1k and i claimed about 80£ expenses. I guess if I had being payed right amount regularly rather then this delay bonus I would get more out of it? Am I correct?
Am I entitled to any compensation? Any ideas how should I play this game?
you would pay tax and ni on anything above about £100 per week. so if your usual pay is more than this, then you wouldn’t have lost out.
if the shortfall in your wages caused you to get bank charges for unpaid direct debits, then your employer should cover these costs. but other than that, i can’t see any reason for you to get any compensation.
NI is a weekly amount - not annual like the PAYE tax. Everything you earn between £110 and £844 in a week gets NI’d (taxed) at 11% - after that 1%.
In Rog’s example:
NI on £500 is 42.90 (11% of £390)
NI on £1000 is £81.84 (11% of £ + 1% of £110)
So the NI over 4 weeks at £500 and 1 at £1000 would be £210.54
If the £3000 were spread evenly over 5 weeks then the NI on £600 per week would be £53.90 per week or £269.50 in total
NI is a weekly amount - not annual like the PAYE tax. Everything you earn between £110 and £844 in a week gets NI’d (taxed) at 11% - after that 1%.
So if you get £1000 one week then you only pay 1% for the top £156. If that was spread over 4 weeks you would pay 11% on it.
But the over pay of tax on the 156 would still be refunded on the next payday if PAYE or if missed, then certainly at the end of the tax year
If, for example, the weekly non taxable limit is 100 per week (tax code 5200 divided by 52 = 100) then the amount taxed upon is divided by the number of weeks in the current tax year and adjusted accordingly.
earn 300 in week 1 - tax paid on 200 of total earned in tax year
earn 300 in week 2 - tax paid on 400 of total earned in tax year
earn 500 in week 3 - tax paid on 800 of total earned in tax year
earn zero in week 4 - tax paid on 700 of total earned in tax year - get rebate
earn 400 in week 5 - tax paid on 1000 of total earned in tax year
earn zero in weeks 6, 7 & 8 - tax paid on 700 of total earned in tax year - get rebate
Income Tax is an annual tax which most of us (employed workers) pay through Pay As You Earn (PAYE). Each time you get paid, that amount is added to what you have earned since April 5th last; the tax due on that total is calculated; how much you already paid is taken away, and you pay what’s left.
National Insurance is calculated by your pay period - weekly, two weekly, monthly, or annually. There is no reference to what has gone before and the calculation relates only to that pay period.
You might note that PAYE is a crafty way for the government to get it’s taxes in early - since the tax isn’t actually due untill after the year end.
