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Tax on wages
richardc1983
Posts: 2,163 Forumite
in Cutting tax
Hi Guys
Confusing one here i think.
I work night shifts at work, based on a 4 on 4 off basis, if i was to work 9-5 i would be contracted to 37.5 hours per week at flat rate time but on a night shift i do 40hours per week at time and a half.
Since I have gone onto nights we are contracted to 35 hours per week (salaried) despite working 40 hours on the night shift. THis means that annual salary is documented @ 14k when really it is a guaranteed 21k in reality. Not sure why they have done this but it is a pain when trying to get a loan as it looks like you earn less than you do.
On our electronic timesheets the way it works is we have to put in our salaried hours (contracted time) onto it whether we have worked it or not otherwise the system throws up an error. So for instance each week you will put in your salaried hours at normal time and then to get the half pay on top of it we add it on as overtime at 0.5 If we add in extra hours as salaried then it throws up an error and wont let you do it so we have to reajust, it really is very complicated.
So some weeks we will only work 30 hour week as our 4 days off may fall within the week and to kid the system into thinking we have done 35hrs at salary we have to put it as unpaid leave so it all adds up. This is what our bosses have told us to do.
So we are putting in 35 hours on the system as salaried hours at flat rate time and to get our time and a half rate we then put in 35 hours again at overtime @ 0.5 this then gives us 35 hours at 1.5. We then have to put in the extra 5 hours as a code on overtime at 1.5.
There is no simple way to do this and this is how we have to do it week in week out.
When we get our wage slips it shows the total salaried hours for the month whcih would be 35 hours per week. THen the rest of our time is shown as overtime on the breakdown as overtime. SO really the way it looks on our time sheet & wage slip is that we have worked for 20hrs extra each week on top of our salary when really we have been there 40 hours and the codes we use on our timesheets is just to get it to add up correctly.
So my question is, with all these hours going down as overtime each month will we get taxed more on the overtime than we would if our 40hours were calculated as part of the salary already worked out as 21k for the year as apposed to 14k per yr?
If so then please explain this to me, if it doesnt affect it at all then please also explain this.
MAny thanks and I hope it has made sense.
Richard.
Confusing one here i think.
I work night shifts at work, based on a 4 on 4 off basis, if i was to work 9-5 i would be contracted to 37.5 hours per week at flat rate time but on a night shift i do 40hours per week at time and a half.
Since I have gone onto nights we are contracted to 35 hours per week (salaried) despite working 40 hours on the night shift. THis means that annual salary is documented @ 14k when really it is a guaranteed 21k in reality. Not sure why they have done this but it is a pain when trying to get a loan as it looks like you earn less than you do.
On our electronic timesheets the way it works is we have to put in our salaried hours (contracted time) onto it whether we have worked it or not otherwise the system throws up an error. So for instance each week you will put in your salaried hours at normal time and then to get the half pay on top of it we add it on as overtime at 0.5 If we add in extra hours as salaried then it throws up an error and wont let you do it so we have to reajust, it really is very complicated.
So some weeks we will only work 30 hour week as our 4 days off may fall within the week and to kid the system into thinking we have done 35hrs at salary we have to put it as unpaid leave so it all adds up. This is what our bosses have told us to do.
So we are putting in 35 hours on the system as salaried hours at flat rate time and to get our time and a half rate we then put in 35 hours again at overtime @ 0.5 this then gives us 35 hours at 1.5. We then have to put in the extra 5 hours as a code on overtime at 1.5.
There is no simple way to do this and this is how we have to do it week in week out.
When we get our wage slips it shows the total salaried hours for the month whcih would be 35 hours per week. THen the rest of our time is shown as overtime on the breakdown as overtime. SO really the way it looks on our time sheet & wage slip is that we have worked for 20hrs extra each week on top of our salary when really we have been there 40 hours and the codes we use on our timesheets is just to get it to add up correctly.
So my question is, with all these hours going down as overtime each month will we get taxed more on the overtime than we would if our 40hours were calculated as part of the salary already worked out as 21k for the year as apposed to 14k per yr?
If so then please explain this to me, if it doesnt affect it at all then please also explain this.
MAny thanks and I hope it has made sense.
Richard.
If you found my post helpful, please remember to press the THANKS button! --->
0
Comments
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No. Tax is worked out solely on your total earnings over the tax year.
It is no different if you are earning £1/hour for 21,000 hours, or £21k and only working 1 hour. It doesn't matter if it's a day, weekday, overnight, shift, normal time or overtime. All these are just words we use to break down and understand our working patterns and pay.
Tax is only decided on the total amount you earn... no matter where that came from.0 -
iTS SOO complicated, so its basically calculated on what my total earnings are for the month as apposed to how i got to that ammount.
So if i earnt 1600 that month but half of that was overtime it doesnt matter whether 1600 is my contracted hours or not it still gonna be taxed the same?If you found my post helpful, please remember to press the THANKS button! --->0 -
richardc1983 wrote: »iTS SOO complicated, so its basically calculated on what my total earnings are for the month as apposed to how i got to that ammount.
So if i earnt 1600 that month but half of that was overtime it doesnt matter whether 1600 is my contracted hours or not it still gonna be taxed the same?
Basically, yes.I consider myself to be a male feminist. Is that allowed?0 -
I am similar to you - I do shift work - contracted to work on average 35 hours per week. So, some weeks I'll work 20 hours, some weeks 48 hours etc. I get paid 140 hours every four weeks, regardless of how many of my contracted hours were in that period. That way it all balances over the period of the rota. And overtime within that period is paid at however many hours of overtime I worked. Seems simpler than your lot to me!I consider myself to be a male feminist. Is that allowed?0
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