Christmas pay

rs100

Hi,

I get paid weekly by cheque. I got paid today and had accrued 11 days holiday and also worked 5 days. Therefore I got paid for 16 days. I only got taxed 20% on all of this money (excluding the weekly tax free allowance of £116.13) and I only paid my normal amount of NI.

This holiday pay is for 5 days I didn't take and 6 days over Christmas so shouldn't I have been taxed more as these holidays cover next week and the week after?

Also, I don't get paid again until 8th January and so when I do get paid, will I pay normal amount of tax or will I pay less as I haven't earned anything for two weeks as such?

Thanks

chrisbur

rs100 wrote: »

Hi,

I get paid weekly by cheque. I got paid today and had accrued 11 days holiday and also worked 5 days. Therefore I got paid for 16 days. I only got taxed 20% on all of this money (excluding the weekly tax free allowance of £116.13) and I only paid my normal amount of NI.

This holiday pay is for 5 days I didn't take and 6 days over Christmas so shouldn't I have been taxed more as these holidays cover next week and the week after?

Also, I don't get paid again until 8th January and so when I do get paid, will I pay normal amount of tax or will I pay less as I haven't earned anything for two weeks as such?

Thanks

Can you advise what your total gross pay was, the tax and NI that was deducted, the tax week number from your payslip and your tax code.

sandiep

It maybe that the cheque actually covers two or three payslips? NI goes with a weekly basis, so if the cheque covers two or three payslips, or if the payslip covers 2 or 3 weeks then this could be quite OK.

Tax is calculated on an annualised basis, which means that they take what you've earned so far this tax year, and assume that you'll carry on earning that same amount for the rest of the year.

So, if you have a couple of weeks without being paid, your tax for probably a good few weeks going forward will be a bit lower. Depending on how much your wage normally varies week on week.

Sorry, that doesn't sound a lot of help but tax is never simple.

Bean_Counter

rs100 wrote: »

and I only paid my normal amount of NI.

Are you in some sort of approved holiday pay scheme such as B&CE for the construction industry where holiday paycan legitimately be paid without deduction of NI?

rs100

Hi, I do work in the construction industry but have never been advised about the holiday pay scheme. Sounds like that might be the case though, thanks.