Can someone explain to me why...

Indispensable_Hobbes

if I get the same basic pay each month does my net pay differ each month?

Generally its pennies but this month it was about £6???

malcindebt

The reason why the difference is normaly pennies depends on how your employer runs the payroll and the tax tables (whatyour employers accountant/payroll system uses to calculate tax due).

The way your employers system/accountant works out the tax is to look at your total taxable gross pay to date (i.e. how much you have earned in the tax year to the week/month of the payment) works out the tax due on that full amount, then deducts what you have paid so far in the tax year.

If you are paid monthly, you can earn £435.4166666666 per month. the reason for the pennies difference you see normally is the rounding up/down of the .4166666666.

If the difference this month is £6, check your tax code on this months and last months payslip, as this is the first month of the tax year, this could be the reason.

If the £6 is in your favour I would expect you to have a bigger code than on last months payslip. If t is in the tax mans favour, then I would expect you to have a smaller tax code than on the last payslip.

jem16

This is a new tax year with a higher personal allowance than last year. If your pay is the same as last month, you will pay less tax this month.

Indispensable_Hobbes

It's in my favour. thanks to both

Innys

I'm in the same boat, but the tax deducted from my pay has gone up! Plus it's gone up by nearly 10% :mad:

Other than that, nothing has changed from the previous month.

I've e-mailed my payroll department to find out what on earth is going on.

jem16

Are you sure your tax code hasn't changed?

Innys

Yes, my tax code has changed - it's gone up. So if anything, I should be paying less tax...

dori2o

Innys wrote: »

Yes, my tax code has changed - it's gone up. So if anything, I should be paying less tax...

did you work for the whole of the last tax year? or start half way through.

If you started part way through, or was on a low income for part of the year, this could explain why you are now paying slightly more.

If you had no income, or an income for part of the year that was less than the tax free allowance, then you will have had some spare allowances that had added up until such a time as you were working, or had an increase in pay that took you over the tax free limit.

Now, as it is the start of the tax year, there are no spare allowances added up, you have only accrued 1 months allowance.

Hope this makes sense.