Pension question

nomunnofun

englandbaby wrote: »

I did get a pay rise in November

Well there we go - I expect that my last post may provide the explanation. However, for the avoidance of doubt you could tell us your salary before the payrise - I suspect that it was below £3500.

englandbaby

it was £38,000 until November and then went to£43,500

nomunnofun

That is your answer! January's salary means that your expected income for the year has pushed you into higher rate tax. It has taken until January for the projected salary for the whole tax year based on the average for the first ten months to do this.

englandbaby

that depresses me....

englandbaby

But thanks for your help!

LittleMax

Don't wish to be rude, but I do sometimes wonder how people can be in jobs paying salaries that put them into higher rate tax and not even be able to work out their payslip ;-)

LittleMax

englandbaby wrote: »

that depresses me....

Why? What is depressing about a salary increase?

englandbaby

Ha ha! Luckily, I dont work with figures!!

nomunnofun

LittleMax wrote: »

Don't wish to be rude, but I do sometimes wonder how people can be in jobs paying salaries that put them into higher rate tax and not even be able to work out their payslip ;-)

To be fair, the fact that he remained a basic rate taxpayer for two months after his pay rise could easily create a false picture for those who are not expert in these matters. I, and others on the thread, were more than happy to help.

Kynthia

LittleMax wrote: »

Don't wish to be rude, but I do sometimes wonder how people can be in jobs paying salaries that put them into higher rate tax and not even be able to work out their payslip ;-)

It is a tiny bit rude. Earning a bit more money doesn't suddenly give you more knowledge on tax, pensions and other deductions. I'm sure there are lots of minimum wage workers know lots on the subject. Maybe even more so as they are more sensitive to changes in their take home pay.