Final payslip - tax is too high

c-m

I have recently been made redundant and have received my last months payslip that includes my salary, redundancy, extra days and holiday.

My tax code is 747L and my normal salary before tax is £1833.33

PAYE is usually £242.08, NI £147.75, student loan £52.50

I have two weeks redundancy pay at the statutory maximum, but employer has missed off some money.

I also worked an additional 7 days, but the employer has missed off a day.

Anyway, even with this money missing (the extra day, and redundancy money) my tax appears far too high.

For example my student loan payment jumped from £52.50 to £98, and PAYE from £242.08 to £343.40, NI from £147.75

None of these add up. Having worked an extra 7 days, only 6 of which show on the payslip, the tax seems far too high.

Can anyone advise please?

jem16

c-m wrote: »

For example my student loan payment jumped from £52.50 to £98, and PAYE from £242.08 to £343.40, NI from £147.75

What is the gross pay for this? Can't help without it.

Pete111

c-m wrote: »

I have recently been made redundant and have received my last months payslip that includes my salary, redundancy, extra days and holiday.

My tax code is 747L and my normal salary before tax is £1833.33

PAYE is usually £242.08, NI £147.75, student loan £52.50

I have two weeks redundancy pay at the statutory maximum, but employer has missed off some money.

I also worked an additional 7 days, but the employer has missed off a day.

Anyway, even with this money missing (the extra day, and redundancy money) my tax appears far too high.

For example my student loan payment jumped from £52.50 to £98, and PAYE from £242.08 to £343.40, NI from £147.75

None of these add up. Having worked an extra 7 days, only 6 of which show on the payslip, the tax seems far too high.

Can anyone advise please?

It's possible that your enhanced monthly payment has moved part of your earnings into the 40% bracket for that month - hence the higher than expected tax bill. What was the gross amount pls?

chrisbur

The student loan and tax figures you quote are what you would expect for an extra £506 aprox on your normal salary. Is this about the figure you had?

I think that you may be forgetting that you normal salary would use up your allowances for that month so assuming you are not a higher rate tax payer any extra will be at 20% tax 12% NI and 9% student loan.

c-m

On the payslip gross pay for the month including £846.16 redundancy (they acknowledged they owe me additional £13+) is £3187

That is missing off an extra day that owe me (which they acknowledged that they owe)

This covers a period from 1st March to 5th April - why they bundled my April work and redundancy on my March payslip i don't know.

I should still be in the 20% bracket as redundancy isn't taxable either PAYE or NI

c-m

chrisbur wrote: »

The student loan and tax figures you quote are what you would expect for an extra £506 aprox on your normal salary. Is this about the figure you had?

I think that you may be forgetting that you normal salary would use up your allowances for that month so assuming you are not a higher rate tax payer any extra will be at 20% tax 12% NI and 9% student loan.

Ok but the additional days are worked in April. The pay slip is dated 31/03/2012

The company want's my p45 back in order to pay me the extra day they owe and the additional redundancy they owe. I have already given this off to DWP

jem16

c-m wrote: »

On the payslip gross pay for the month including £846.16 redundancy (they acknowledged they owe me additional £13+) is £3187

So £2340.84 taxable.

Tax and Student loan is correct. Not sure about NI.

This covers a period from 1st March to 5th April - why they bundled my April work and redundancy on my March payslip i don't know.

Work up till 5th April is still in the last tax year so I suppose it makes it easier.

agrinnall

I think if they have already issued you P45 they will have to apply a BR tax code to the additional payments, meaning that you'll pay tax at 20% on the full amount. I'm not sure whether the extra should be treated as if it was paid in 2011-12 or 2012-13, if it's the former then the tax will be correct, if it's the latter then it may end up being too much depending on when you get another job and how much you earn in the tax year. Once you receive the money and the payslip for it I would suggest you speak to the jobcentre about it to see how it should be handled.

c-m

Ok cheers guys. Looks like they are raising a new P45. Thanks

heretolearn_2

Also check they haven't taxed you on the redundancy money - this should be paid in full, gross, no tax.

dtaylor84

From the figures posted:

The redundancy money was tax free.
The extra pay was taxed at 20% and had student loan payments deducted at 9%.

The new NI figure is missing, so can't check that.