can someone help me understand my payslip please?

bobins

right ok, so does this then mean that my last wage (first payment with this employer) is incorrect? i worked mon5th-sep to friday30thsep.. i assumed that my payment covered the thursday&friday aswell? im sorry, just a bit baffeled by all this, but i really want to understand so that i know what is going to be coming in every month and that it is correct!

many thanks

YorkshireBoy

You didn't work Thursday 1st & Friday 2nd of September. They've knocked you off 2 days of the possible 22 working days in September (see Gizmo's post re 20/22nds or 10/11ths). Your next months salary will be correct, as you will be "employed" for the "whole month".

trencherpilot

Does your new job give you any perks like a company car

Old Gordon likes his extra cut from them!

bobins

ok ive got my head round it now thanks look forward to my next pay now.. although my next pay is going to be wierd again because half of it will be @ 16k and the other half @ 18k

anyway cheers everyone!

gizmoleeds

bobins wrote:

ok ive got my head round it now thanks look forward to my next pay now.. although my next pay is going to be wierd again because half of it will be @ 16k and the other half @ 18k

anyway cheers everyone!

Yeah - it takes a while to understand.

Basically, there will have been four weeks between this pay day and the previous pay day, so it is reasonable to suggest that you should get all of the month's pay. However, the pay represents a calendar month, so there are 22 theoretical working days in the pay period.

Some months will have 5 weeks between pay periods, and if you had started work in a month with 5 weeks between pay periods it would still work out the same (20/22nds not 20/25ths).

It is not an exact science, as if you had started work in February in a non-leap year and done four weeks work you would have got £1,333.33 (as there would only be 20 working days in the month).

kazzy

You need to phone the inland revenue who deal with your company(s/b on payslip) Make sure they take you off month 1 basis and start paying cumulative tax.Basically it means at the mo you are paying emergency tax.As soon as the tax office asvise you of you correct code (they should advise employer aswell)-you will pay less tax and also get a refund in that month's pay for overpaid tax to date.

bobins

i will mention the month1 basis thing tomorrow. but i dont actually think i am paying too much tax at the mo as it seems to correspond with all the paye tax calculators out there.. but i will certainly mention it.

many thanks

YorkshireBoy

bobins wrote:

...i dont actually think i am paying too much tax at the mo as it seems to correspond with all the paye tax calculators out there...

The online tax calculators assume that you are employed throughout the tax year, and that you are paying your 10% starting rate tax every month.

Read ctm's post #18 again. The chances are that, because you haven't worked (and hence haven't paid any tax) so far this tax year, you have paid too much tax this month on your M1 basis. This is because you haven't had the full benefit of your 10% starting rate tax from April to August - ie for the first 5 months of the current tax year.

bobins

oh god

ok so what should i say to the accountant tomorrow? (its a small company so i can talk directly to the accountant that sorts my wages..

thanks again

ctm_2

bobins wrote:

oh god

ok so what should i say to the accountant tomorrow? (its a small company so i can talk directly to the accountant that sorts my wages..

thanks again

Just tell him that you think you are on the wrong code, and could he check your P45 that you gave them to see what it says. If it shows a cumulative code (not week/month1) then ask him to correct their books and deduct the correct amount of tax.

If you P45 does show a week/month1 code, then you need to call your HMRC (the new name for the inland revenue) office and discuss your code with them and ask to be put on a cumulative code.