2 years back pay taxed at 45%???

jem16

Mwd wrote: »

This is what it says on my pyslip : Taxcode: 647L/0

The /0 isn't a proper part of the tax code but I have seen some employers using this in the absence of the /1 which does mean Wk1/Mth1 and is a non-cumulative tax code.

So basically you are on the normal 647L tax code which is being worked out cumulatively.

SarEl

Mwd wrote: »

Sad thing is after everything, now that i've got the backpay - im not as happy as i thought i would be (partly cos of this tax issue) and secondly cos i've had to fight so hard to get it, they dragged this out as long as they could. I was going hand in my resignation at one stage and am still dabbling with the idea.

This may not actually be consolation - perhaps "perspective" would be a better phrase. But you did very well and despite everything, your employer must value you (even if it hasn't always felt like that!). Because you may be morally correct, but legally you weren't! A comparator must be existing employee (s) and not previous postholders.

Mwd_2

SarEl wrote: »

Because you may be morally correct, but legally you weren't! A comparator must be existing employee (s) and not previous postholders.

Fortunately this bit i was clued up about and got advise from acas and solicitors prior to submitting the complaint to ensure I was legally on the right grounds. For an equal pay claim your comparator does not have to be a current post holder..have a look at the equal pay act questionnaire.

Hopefully they do value me a little bit more, I was advised by so many friends not take things this far but i had to regardless of the outcome no point !!!!!ing about pay/being treated differently if you're not prepared to do what's necessary to change it.

chrisbur

I think the tax has been covered now, you will pay some at 40% but it will be repaid to you over the following couple of months.

From the figures you have given I assume that what has been paid to you is an advance, and the actual payment of the 9000 will be added to next month's salary so that correct tax and NI can be deducted and the advance will be taken back from your net pay. Sort of giving it twice and taking it back once, but this gets the figures for tax and NI correct and gives you most of the money now rather than waiting for the next pay run. If you put details of next months salary on here they can be checked, do not use a tax checker like listentotaxman as it will give you the wrong answer.

If they are not doing it this way you need to ask for a payslip showing tax and NI because I feel that 45% is a bit to high to deduct.

As far as NI is concerned most of this payment will be over the uppers earnings limit and so only 1% will be due.

Madjock

ok i've not read all of the rest of the thread, but it's a fair cop! I feel ever so slightly foolish, I had never realised that it worked that way, seems kind of sill, why don't they just say the threshold is 42K?

I'm sorry for being so wrong in my wrongness.

jem16

Madjock wrote: »

why don't they just say the threshold is 42K?

It's because not everyone's personal allowance is the same.

chrisbur

Madjock wrote: »

ok i've not read all of the rest of the thread, but it's a fair cop! I feel ever so slightly foolish, I had never realised that it worked that way, seems kind of sill, why don't they just say the threshold is 42K?

I'm sorry for being so wrong in my wrongness.

Is it OK for me to work for HMRC now?

Mwd_2

Just to say thanks to everyone for responding! Much happier now that i know I'm not getting screwed over.

Mwd_2

KiKi wrote: »

So they will tax you accordingly - and then by the end of the year as it becomes apparent that the £9k was a one-off and you won't be in the 40% tax bracket, you will pay less and less tax and it will all work out correctly by April 5th. (If it doesn't, you can put in a claim for a rebate, but it should work out correctly through PAYE.)



KiKi

Payroll dept emailed me today to say I will get a tax rebate starting Nov

Mwd_2

chrisbur wrote: »

I think the tax has been covered now, you will pay some at 40% but it will be repaid to you over the following couple of months.

Payroll confirmed i will receive a tax rebate from November