Personal Allowance question

chrisbur

Britta_Ekland wrote: »

Update:

I just got paid for 15 days work (sep 10th- sep 30th) and they took 1/3 off for tax as didn't have my tax code which left £3000

They said this will adjust in October pay which will include sep 30th - oct 31st minus the September pay £3000 but at this point what would I expect tax wise?

Thanks in advance

This sounds to me like an advance which will be processed as a salary next month and the advance then deducted.
Have you completed a new starter declaration confirming that A applies to you?
A – This is my first job since last 6 April and
I have not been receiving taxable Jobseeker’s
Allowance or taxable Incapacity Benefit
or a state or occupational pension.
OR
B – This is now my only job, but since last 6 April
I have had another job, or have received
taxable Jobseeker’s Allowance or Incapacity
Benefit. I do not receive a state or
occupational pension.
OR
C – I have another job or receive a state or
occupational pension.

Britta_Ekland

Hi it was option A

Caz3121

agrinnall wrote: »

Pay was £4500 (£300 per day * 15 days)
Tax was £1500 (one third deducted, confirmed by net pay figure of £3000).
Tax code not confirmed but the OP has assumed it will be 1060L.

Now you can do the maths.

I guess confirmation was needed on whether National insurance was included in the 1/3rd so was the gross £3,000 was the amount after tax and national insurance?

chrisbur

Britta_Ekland wrote: »

Hi it was option A

Option A allows the employer to use the emergency tax code of 1060L on a cumulative basis but your figures indicate that this was not done.

Do you have a payslip which shows gross tax deducted national insurance tax code used and any cumulative figures?

If you do not then my feeling is that this was an advance, possibly because your pay details were to late to be included in the payroll run.
The figure of £150 exactly for tax is unlikely and even for tax and NI it is again unlikely and seems to me to be just a rounded estimate as would be the case for an advance.
When you say"They said this will adjust in October pay which will include sep 30th - oct 31st minus the September pay £3000" this again suggests it was an advance; if it was a normal wage there would be no need to "minus the September pay...."

I would suggest speaking to payroll dept to check

1 Was this just an advance of wages to be adjusted on the next payment?
2 Do they have your P46 so that you will be put on the emergency tax code of 1060L on a cumulative basis for the next payment?

Britta_Ekland

sorry i feel i have been totally unclear.

Okay yes the payment of £3000 was just an advance as i missed the payroll cut off. They deducted the 1/3 based on nothing but a guestimate! they had received no tax code for me so have guessed at 1/3.

So my next payment is going to be from my start date to the end of october - minus the £3000 advance and im hoping will compensate back the overtaxing of the first advance. my code should be 1060L as i haven't worked at all post april -this is my first job

also i have no payslip to make reference to - they said id get this for the October pay

chrisbur

Britta_Ekland wrote: »

sorry i feel i have been totally unclear.

Okay yes the payment of £3000 was just an advance as i missed the payroll cut off. They deducted the 1/3 based on nothing but a guestimate! they had received no tax code for me so have guessed at 1/3.

So my next payment is going to be from my start date to the end of october - minus the £3000 advance and im hoping will compensate back the overtaxing of the first advance. my code should be 1060L as i haven't worked at all post april -this is my first job

What they will do is pay you next month's salary plus £4500, from this (hopefully) they will deduct the correct tax and national insurance to get the correct net pay for all that is owed up to that point; from that net pay they will deduct £3000 that was advanced to you.
So £4500 should be added to gross and £3000 deducted from net. This will sort out tax/NI and adjust for any inaccuracies in their guestimate.
I am a little concerned about "they had received no tax code for me" they do not need to receive one you have signed to confirm option A so they should use the emergency tax code 1060L on a cumulative basis that is allowances backdated to last 6 April. I would again recommend speaking to payroll to confirm that they will be doing this.

If you can advise gross pay for next month I can do the calculations to show what should happen.

Britta_Ekland

thank you Chris. I actually don't know wht happened to them using an emergency code i just was told we've deducted 1/3 so no clue why they didn't use the emergency code.

gross pay for next month should be £11,100 (but minus the £3000 advance) so £8100 gross

Caz3121

Britta_Ekland wrote: »

gross pay for next month should be £11,100 (but minus the £3000 advance) so £8100 gross

They should be using £15,600 as the gross pay
deducting the tax and national insurance creating a net then deducting the £3,000 paid with you getting the remainder

Caz3121

Britta_Ekland wrote: »

gross pay for next month should be £11,100 (but minus the £3000 advance) so £8100 gross

They should be using £11,100 gross
deducting the tax and national insurance creating a net
then deducting the £3,000 paid with you getting the remainder

chrisbur

Britta_Ekland wrote: »

thank you Chris. I actually don't know wht happened to them using an emergency code i just was told we've deducted 1/3 so no clue why they didn't use the emergency code.

gross pay for next month should be £11,100 (but minus the £3000 advance) so £8100 gross

The £3000 was just a loan, given as they had passed the cut-off for adding you to the payroll, it has not been processed as a wage yet.
The following assumes that you are put onto the emergency tax code on a cumulative basis for next month ie. everything goes as it should, your payday falls in month 7 Oct 6 to Nov 5 and that you are on the A rate for national insurance which is the most likely rate from what you have said.

starting gross is £15600.00 (ie £11100.00 plus £4500 )
Tax allowance for month 7 on 1060L cumulative is £6188.63
£15600.00 less £6188.63 is a taxable pay of £9411.37 which gives tax of £1882.20
National insurance is £362.61 on £4500.00 and £494.61 on £11100.00 to give a total of £857.22

So we have gross £15600.00 less tax £1882.20 less NI £857.22 less advance of wages of £3000.00 gives a net pay of £9860.58

All figures may vary by a little bit as I did my sums on the back of an envelope and your employer hopefully has a computer running a payroll program.

It is possible that your employer may deduct NI as if the full £15600.00 belongs to one pay period in which case the NI figure will be around £584.61 and your net will be £272.61 higher. If this happens I would not bother mentioning it to anyone.