My wage slips - Am I getting ripped off?

oasis1979

I was just looking over my old & new wage slips

My gross has been reduced keeping me with the same take home amount

I presume there has been some kind of tax change - shouldn't I benefit from that?

Is this common practice or is my company at it?

Googlewhacker

Are you salaried or per hour?

StephenM_2

Yes there has been a tax change and yes you should benefit from it. Your tax code has gone up from 647L to 747L meaning that you should be paying £16.67 a month less tax if your gross pay stays the same. This should result in more take home pay. Instead your employer seems to have reduced your gross pay to make the net pay the same. It looks like you are being ripped off, unless your hours have gone down.

oasis1979

Googlewhacker wrote: »

Are you salaried or per hour?

no £1200 a month was agreed a few years ago but I'm guessing I should benefit from any tax change to that amount

LadyMissA

oasis1979 wrote: »

I was just looking over my old & new wage slips

My gross has been reduced keeping me with the same take home amount

I presume there has been some kind of tax change - shouldn't I benefit from that?

Is this common practice or is my company at it?

one is 2012 747L code and the other 2009 647L code

One has gross thats gone down but then the tax code went up

Googlewhacker

oasis1979 wrote: »

no £1200 a month was agreed a few years ago but I'm guessing I should benefit from any tax change to that amount

It was £1200 a month so is there any overtime in these figures below?

oasis1979

Googlewhacker wrote: »

It was £1200 a month so is there any overtime in these figures below?

no overtime ever

KiKi

Yes, you're being ripped off. In case you don't know how tax codes work, the 2009 one (647L) means you can earn £6475 in one tax year before you pay income tax of 20%. 747L means you can earn £7475 in one tax year before you pay income tax. So yes, you are paying less tax (as you have more tax-free allowance), and should benefit from that.

The only exception to this is if - for whatever reason - you negotiated net pay and not gross. But I have never, ever, ever met anyone who has done that.

Before you go in all guns blazing (not saying you'd do that, but I know it's tempting!) it *may* be that an admin in payroll was told - once - that your pay was £1200 and they have just done what they thought they should to make that right. They may genuinely think they have to get your net pay right as that's what was agreed, and you've had no pay increases since. They may not realise that the tax change should benefit you, and think that the £1200 still applies.

It may be a genuine misunderstanding - or your employer thinks that you have negotiated net pay - or that you *have* negotiated net pay!

Have a chat with them.
KiKi

Judith_W

I don't really understand - if you agreed £1200, I would expect that to be the gross amount when clearly this is the net amount and you wouldn't want them changing to £1200 Gross! Very odd. Did they ever advise gross amount "but this will equate to £1200 net..."? Do you have a contract?

maninthestreet

There's something odd about those payslips - the one from 31/12/2009 has:

YTD Gross: 13,560
YTD Taxable: 13,560

The one from 29/02/2012 has:

YTD Gross: 7,375.67
YTD Taxable: 16,226.62

How does that happen??

oasis1979

Judith_W wrote: »

I don't really understand - if you agreed £1200, I would expect that to be the gross amount when clearly this is the net amount and you wouldn't want them changing to £1200 Gross! Very odd. Did they ever advise gross amount "but this will equate to £1200 net..."? Do you have a contract?

Hi

I was on £1000 (take home) and agreed a rise to £1200 (take home) previous to the rise in tax allowance

sure any increase in personal tax allowance should come into my pocket not my bosses