Possible payslip fraud by employers

rkc86

Hi

I work for an international company in the U.K.

I've just had my mortgage application declined as the numbers don't add up according to my payslip.

Before I started my contract, myself and the employers agreed my salary will be £1200.00 per calendar month and this is shown as my net pay on my payslip.

So obviously my guess is they have to work out roughly the gross pay to the nearest decimal point or zero to make it exactly £1200.00 net per calendar month.

So I've noticed on my previous 3 payslips that the gross pay is different each month and I've paying different amounts of tax. I don't know whether that is normal as it should be the same but then again, there are more or less days each month and I get paid on the last working day of each month.

I wanted to hear your views before I confront my employers.

Many thanks

WestonDave

Can you advise the tax code on each payslip please. My guess is that the tax code has varied (you should have at least 2 as we are now in a new tax year) and because you are paid an agreed net amount, that would have to be back calculated using the varying tax free allowance indicated in your tax code.

chrisbur

Without the details it is impossible to tell anything, though it may be affected by one of the payslips being in a different tax year.
From each payslip give the taxable gross, tax paid, NI, tax month number or date paid, tax code and basis, taxable gross to date and tax paid to date.

WestonDave

OK so whilst we wait for the tax codes - assuming the standard tax code for March (in tax year 2013/14) you'd need gross pay of £1419.40 to receive net pay of £1200.01 whereas in April (tax year 2014/15) the standard tax code would mean gross pay of £1402.60 to leave net pay of £1200. That illustrates why an agreed net pay will result in variations to gross pay - in 2014/15 the tax free allowance is higher meaning you pay less tax so the employer pays you less gross pay to leave the same after tax net pay.

rkc86

Hello

Thank you for your replies. That may be true too.

My tax code in March was 944L. April I believe was 100L, will confirm when I'll find it. Just waiting to see if May will be the same amount as April in a few days time.

My March payslip states my gross as £1357.56, PAYE Tax as £72.00 & N.I. as £85.56

Does that sound about right?

chrisbur

rkc86 wrote: »

Hello

Thank you for your replies. That may be true too.

My tax code in March was 944L. April I believe was 100L, will confirm when I'll find it. Just waiting to see if May will be the same amount as April in a few days time.

My March payslip states my gross as £1357.56, PAYE Tax as £72.00 & N.I. as £85.56

Does that sound about right?

May be right may be wrong as I said before need the full figures.

From each payslip give the taxable gross, tax paid, NI, tax month number or date paid, tax code and basis, taxable gross to date and tax paid to date.

Would also add now when did you start and if it was last year what were you doing before starting this job? On details so far looks like you may have started this job recently.

General_Grant

Why do you think it is a fraud?

Mortgage providers normally ask about gross pay, don't they? Your gross pay will vary as it would be foreseen that you would automatically have a gross pay cut when the personal allowances changed in April.

If you gave a gross annual figure as one of the month's multiplied by 12, then the mortgage company would see that change didn't add up to your claimed total.

By the way, I wondered why you agreed to this method of paying you. Have you been employed by them for years on a nett pay basis?

mountainofdebt

General_Grant wrote: »

By the way, I wondered why you agreed to this method of paying you. Have you been employed by them for years on a nett pay basis?

would be interested to know this as well as surely every time the tax allowance goes up the OP effectively gets a pay cut

mountainofdebt

General_Grant wrote: »

By the way, I wondered why you agreed to this method of paying you. Have you been employed by them for years on a nett pay basis?

would be interested to know this as well as surely every time the tax allowance goes up the OP effectively gets a pay cut

chrisbur

The OP appears to have been working here for about nine months or so.
I thought the name and figures rang a bell so checked back main details here....
https://forums.moneysavingexpert.com/discussion/4799033

Seems to have a history of strange things going on with their pay. Leaving aside the £600 which may or may not be expenses, having started about Sept/Oct with a net of £1200 and apparently no employment before that could well have hit the point of starting to pay tax towards the end of last tax year which could explain the changes in the gross to achieve a constant net. We may get some answers if the OP provides the figures requested.

agrinnall

I can't really understand why anyone would agree to a net payment amount such as this, as the only winner in the long run will be the employer, while the employee has both an annual pay cut and the value of the pay is constantly eroded by inflation.