Honorarium

inkwat

Hi, I'm receiving an honorarium for about £1700 this month on top of my usual salary (£1300 gross) a month. However, as a result I notice that my deductions this month amounts to £990:

£370 PAYE
£200 pension
£280 NI A
£140 Student Loan (normally would not pay this as I come under the bracket to pay it back)

...will I get any of this money back? In essence I'm only getting £900 of my honorarium (net pay for £2000 this month when it would usually be £1100). Thanks!

agrinnall

*** Edit: Just realised these are the totals you are paying rather than the additional amounts, there's a good chance the figures are correct and the only only you can get back is the student loan. ***


PAYE seems a bit high, it should be 20% of your additional payment, so £340.

Pension, impossible to say as we don't know what percentage of your income is contributed to your pension scheme (but if it's around 12% then it's right).

NI also seems a bit high, it should be 12%, or around £200.

The student loan repayment could be right (depends if you are plan 1 or 2) but you should be able to apply for a refund.

https://www.gov.uk/repaying-your-student-loan/getting-a-refund

inkwat

Thanks, pension is 6.8%. It's basically added the Honorarium and the Basic Salary together and then pulled the fees from that.

So the fees given are the total gross pay for the month of a little under £3k.

It just seems a little high as I'm losing a little under £800 from my honorarium, leaving me with £900.

CLAPTON

whats your tax code?

inkwat

CLAPTON wrote: »

whats your tax code?

Tax code: 1100L

chrisbur

Have you rounded any of these figures if so can you give exact figures preferably from the payslip and include year to date gross, taxable gross and tax paid? Also are there any other deductions?

inkwat

chrisbur wrote: »

Have you rounded any of these figures if so can you give exact figures preferably from the payslip and include year to date gross, taxable gross and tax paid? Also are there any other deductions?

Honorarium: 1661.50
Basic Salary: 1326.33
Total Gross Pay: 2987.83
Deductions: 991.47
Net Pay: 1996.36

Deductions:
PAYE: 373.40
Pension (6.8%): 203.17
NI A: 277.90
Student Loan: 137.00

Balance:
Gross Pay YTD: 14924.80
This Employment Taxable Pay YTD: 14,029.28
This Employment Tax Paid YTD: 970.80
National Insurance YTD: 984.58
Pension Employee YTD: 895.52
Pension Employer YTD: 2611.84

Basic Salary Annual Amount : £15,916

Tax period number: 10

That's everything on my payslip...

chrisbur

Tax paid to date is spot as is national insurance deduction for that payslip. Regarding student loan assuming this is plan 1 then deduction is correct as it stands but as I understand it you may well be entitled to a refund if at the year end you have paid more than you should based on annual income. You would get better details on this from the student loan company.

Not sure how you arrived at £900 from your bonus would need exact figures for last month to check this.

inkwat

I usually get paid £1100 after tax and this month I am being paid £1996.36 so only seeing roughly £900 of the bonus. Oh well, if it's correct then it's correct.

MichelleUK

inkwat wrote: »

I usually get paid £1100 after tax and this month I am being paid £1996.36 so only seeing roughly £900 of the bonus. Oh well, if it's correct then it's correct.

The rough workings for your extra deductions are:

1661.50 x 20% tax = 332.30
1661.50 x 12% nic = 199.38
1661.50 x 6.8% pension = 112.98
112.98 x 20% tax relief on pension = (22.60)
Student loan = 137.00
Total extra deductions = 759.06

Net extra pay = 1661.50 - 759.06 = 902.44

chrisbur

I appreciate that at this point in time you see the pension as a deduction of £112.90; but it is going into your pension fund at an actual cost to you of £90.38 and will eventually benefit you. Possibly with an addition as employers contribution to the fund.