I started work at my current employer in April this year. For 12 weeks I had to sacrifice £2ph which I would get back once I completed my probation.
My employer forgot to pay this in my last paycheck or even give me the pay increase. Just checked my payslip now and they’ve finally paid me but I could cry.
The taxman has doubled his grab, NI has shot up also. I’ve actually been paid roughly what I got the month before. What’s the point in working any extra hours to better yourself if the taxman takes a huge bite out of it? I think overtime and back pay (to an extent) should be kept at your current tax.
Proper peed me off this morning that has
stuwozere1:
I think overtime and back pay (to an extent) should be kept at your current tax.
It is. You’ll have paid no more tax and NI than if you’d got that extra £2/hr from the very first day. Tax man has doubled his take because you’ve doubled the amount of taxable pay for this pay day. NI has also gone up for the same reason but as I said, you’ve paid no more tax and NI to date than you would have if you’d not had the £2/hr sacrifice.
stuwozere1:
I think overtime and back pay (to an extent) should be kept at your current tax.
It is. You’ll have paid no more tax and NI than if you’d got that extra £2/hr from the very first day. Tax man has doubled his take because you’ve doubled the amount of taxable pay for this pay day. NI has also gone up for the same reason but as I said, you’ve paid no more tax and NI to date than you would have if you’d not had the £2/hr sacrifice.
I’ve worked it out, it jumped from 20% tax to 40% tax. It practically wiped out the pay increase
stuwozere1:
I think overtime and back pay (to an extent) should be kept at your current tax.
It is. You’ll have paid no more tax and NI than if you’d got that extra £2/hr from the very first day. Tax man has doubled his take because you’ve doubled the amount of taxable pay for this pay day. NI has also gone up for the same reason but as I said, you’ve paid no more tax and NI to date than you would have if you’d not had the £2/hr sacrifice.
I’ve worked it out, it jumped from 20% tax to 40% tax. It practically wiped out the pay increase
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Its because 3 months of “extra” got bundled in at once. Do a tax query at the end of the year and it will be corrected.
Connor is right that at the end of the year it will be the same, but this week/month you have been screwed
As tax is normally calculated by tables you should get some tax back next month.
If you think 40% is bad try losing you personal allowance as well and see how that feels
If your monthly pay looks like that of a high earner you’ll hit the higher threshold tax. Over the year if you gross below 46350 you’ll get that tax back.
I don’t think they can justify keeping it all year though… a few phone calls might get it sooner.
no1dieselman:
As tax is normally calculated by tables you should get some tax back next month.
If you think 40% is bad try losing you personal allowance as well and see how that feels
I agree, but don’t get too carried away you will still have tax deducted; just a bit less which may make things look a little too rosy. In fact you probably won’t know what your normal weekly/monthly after tax figure is for a further pay period or two when it settles down. Whether you can still ring the local tax office to enquire like in days gone by I cant say, but you can ask your company payroll to
explain things and give you any HMRC contact details.
