EMPLOYER HAS CHANGED PAY ie £500 basic plus exp plus o/t
to £400 plus £100 exp plus exp plus o/t
whats legality on this ie tax n.i. for me and them
no consultation
not happy but only found out on return to base sat
need advice for Monday chat on same with them
Thanks in advance
reduction in holiday pay for starters
maybe less tax on your expenses
should of consulted even out of common courtesey
if the expenses are being paid tax free, it means you will get more in your pay packet each week, as you will be paying less tax
but, you need to ask about holiday pay, you will only get the £400, not the £500
over the year, it will work out in your favour, even with the lower holiday pay rate included
No ideas on the legality but i suspect you’ll be £100 a week worse off when on holiday, with a possible reduction in overtime rates as the hourly rate has effectively been cut.
In theory you might take more home as that £100 ex’s might not be taxed but i’d be wary of all the implications, some of you might also come down into some sort of benefit top up level.
Another example of why we should all be in the union.
agree with
shuttlespanker:
if the expenses are being paid tax free, it means you will get more in your pay packet each week, as you will be paying less taxbut, you need to ask about holiday pay, you will only get the £400, not the £500
over the year, it will work out in your favour, even with the lower holiday pay rate included
however its a change of contract so I would ask for it in writing and check it over…
Looks iffy to me. As other have said your holiday pay will be affected but so will any earnings related sick pay, o/t which is calculated as a ratio of your basic hourly rate and any salary related pension.
How can you get a fixed level of expenses every week and then a variable amount of expenses on top? I understand that the HMRC will only allow a certain amount subsistence expenses (e.g. a daily meal allowance where there is no canteen available) before they are taxed so you may find that some of your regular expenses will fall into the taxable range.
Speak to someone who does know about these sort of things.
cheers all much as i thought but am wary of whats regarded as your salary for other purposes ie
mortgage loans etc
take home amount not altered
Yes im in UNITE UNION.
kavs44:
cheers all much as i thought but am wary of whats regarded as your salary for other purposes ie
mortgage loans etctake home amount not altered
Yes im in UNITE UNION.
if the highlighted part is correct, then he is screwing you over 
over all, you are being paid the same level at top line, but there is theoretically less tax deducted, so, how can the take home be the same?
Juddian:
In theory you might take more home as that £100 ex’s might not be taxed but i’d be wary of all the implications, some of you might also come down into some sort of benefit top up level.
Seriously? I’m not all that clued up on benefits, but do we really ‘top up’ people earning in excess of £500 a week? I must have been living in abject poverty for years if this is considered below the bread line 
‘‘Yes im in UNITE UNION.’’
Speak to your steward then, if no joy or you don’t have one phone the local area office for help, its why you pay your subs.
As Shuttlespanker, your take home should increase, though it sounds like there’s a financial problem to me and someones clutching at straws.
grumpybum:
Juddian:
In theory you might take more home as that £100 ex’s might not be taxed but i’d be wary of all the implications, some of you might also come down into some sort of benefit top up level.Seriously? I’m not all that clued up on benefits, but do we really ‘top up’ people earning in excess of £500 a week? I must have been living in abject poverty for years if this is considered below the bread line
Nor am i clued up and don’t get or want any, benefits that is…
Dropping to £16k gross if sole income and our OP has children i wouldn’t be surprised to see family credit or whatever its called this week kick in.
oops, glad your mental arithmetics working better than mine Santa, after careful consideration my mitigating circs are i have man flu.
£500 a week is £26,000 a year
£400 a week is £20,800 a year
A reduction of £5,200
You should save 20% tax on the difference - £1,040
You will lose 4 x £100 on holiday pay.
So if the tax is correctly calculated you will be £640 per year better off.
Thanks for replies
Have never received or drew any benifits thankfully all ways worked and dont receive tax credits either .
The problem i see is that employer is not paying tax and n.i. on £100 and i may become liable later plus i dont like any type of under hand carry on.
I would also imagine that he cannot change your contract of employment without permission, assuming you have one, which should be compulsory after 13 weeks, anyway, if the calculations are correct, and you will be £640 a week better off, then keep stumm, if your not happy, say summat.
truckyboy:
I would also imagine that he cannot change your contract of employment without permission, assuming you have one, which should be compulsory after 13 weeks, anyway, if the calculations are correct, and you will be £640 a yearbetter off, then keep stumm, if your not happy, say summat.
Corrected that for you
Thanks, what a great surprise for the op, to get more per week than hes ever earned, ha ha , really must proof read before posting… 
Holiday pay wont be less! If you’re on say £650 take home pay, that’s what they must pay you on holiday! 
otherwise they’re robbing you blind! previous 12 weeks average £650 = holiday one week £650! 
if you’re in unite ask the shop steward! If not stick a grievance in and tell them you’ll see them in court! That’s what we’ve done at stobrats! zero hours contract