My wage slips - Am I getting ripped off?

chrisbur

oasis1979 wrote: »

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

You appear to have agreed a net pay contract, this is most common with nannies but can be with any job, though I have not come across it other than nannies and some domestic staff.

The following link gives details of net pay agreements
http://www.payefornannies.co.uk/parents/net_vs_gross.htm

There is a section in this that talks about the rise in tax allowances and the affect this has on the employers costs. A short quote, I have underlined the last sentance......
"Employers should note that following recent government announcements on the phasing in of a £10,000 tax free band, the tax charge on most employees will reduce substantially over the next few years. Employers who employ on a net basis will therefore see their costs reduce significantly as they will pay less tax on their employees behalf."
It is the employer that benefits from the tax allowance increase not the employee.

You need to look closely at your contract to see if you are really on a net pay agreement or if you are on a gross agreement that just advises what your net is likely to be.

And as maninthestreet says there is definately something strange about 29/02/2012 payslip.

heretolearn_2

If you are on a net pay agreement, which it seems clear you are, then tax changes don't make any difference to you. This time round your employer benefits (as usual) but on the other hand it's possible for tax changes to go the other way and for you to stay on the same net but the employer to have to start paying more (in theory). If for example your tax code changed to have more tax deducted then it wouldn't reduce your pay.

Net pay contracts are extremely unusual - as above I've only ever come across them for nannies.

But if that is what it is, that is what it is. Perhaps you could find out why your employer uses net pay contract, and if you want to switch to a more usual gross pay agreement would they be open to that? In which case agree your current gross pay and go from there.

oasis1979

i dont have any contract - everything was verbal

Evilm

Then you need to clarify. Are you saying you have nothing in writing at all since that time? Not an email confirming start dates or rates or anything? If you haven't you probably should get something quickly (once you sort this out).

Is this a proper company with proper employees or a person/ sole trader you are working for.

This all seems a bit odd especially since that payslip from February seems completely impossible - as if someone has just entered the figures on a document and not actually worked things out!

EDIT: there is also no 'employer NI on those! (seems wrong?)