Backdated pay meant increased tax and NI

foolofbeans

I increased my working hours (still only part time) and had an issue with my pay being lower than it should be because the increased hours weren't paid by payroll.
I got paid an extra payment at the start of January to cover some of the amount owed for the previous 7 weeks and was informed that this would be adjusted at the end of January with the usual payroll.
When January's pay date came I earned far more than is usual due to the additional backdated payment and as a consequence have paid more tax, more NI and a student loan payment. I queried it with payroll who said the tax would be the same as if I had been paid properly over the 3 months and should equalize over the next couple of months. NI was said to be a statutory deduction so they couldn't not pay it and I agree but surely that does not mean I should pay it if it is not normally due?
Anyway I have been told to put in writing if I wish payroll to look into the matter but I'm unsure how to proceed. How can I find out what I should have paid over the 3 months rather than all of the money paid in one month? I had a quick look at a tax calculator website that suggested lower tax payments and little or no NI rather than what I paid. Would it be acceptable to quote this calculation to payroll to show where the discrepancy lies?

marliepanda

Any incorrect tax will come back to you via HMRC one way or another.

NI cannot be helped. That's a done deal.

The student loan im not sure on. I'm guessing it will be a minimal payment

Savvy_Sue

If at the end of the year your income is less than the threshold for triggering student loan payments you can ask for it back. Otherwise, it has to be paid.

I have a feeling it is sometimes possible to reclaim the NI if it would not have been due had you been paid the correct amounts over a longer period, but payroll are correct to have deducted it at the time.

getmore4less

Would you pay any NI on normal pay on the increased hours?

agrinnall

You need to provide figures if you want to get a meaningful rather then generic answer.

jobbingmusician

I do appreciate that you (are likely to) have paid NI which wouldn't otherwise have been payable, due to the way they have paid you. In principle, therefore, I think your employer has a responsibility - moral, not legal - to repay you this overpayment. PROVIDING that the failure was in fact theirs and the late payment was down to them, and not down to you e.g. submitting timesheets late. What does your contract actually say about payment times?

foolofbeans

agrinnall wrote: »

You need to provide figures if you want to get a meaningful rather then generic answer.

Salary 780.40
Training 76.54
Training 77.60
Back pay 936.57 Total Pay = 1871.11
Deductions:
Tax 282.80
Student loan 30.00
NI 134.58
Advance 636.87 Total deductions = £1084.25

My tax code is 454T due to it being a 3rd job so I know this means a higher wage. Normal wage should be £780.40 gross pm.
I know the tax should even out over the next few months but the NI can't be reclaimed. I understand it is statutorily payable but I don't feel it should be me that pays it when the amount is much higher than the normal monthly amount x3.

In order to claim the payments back I have to put in a complaint in writing so I assume I have to show that the payments were more than they would be on a normal monthly payment.

foolofbeans

jobbingmusician wrote: »

I do appreciate that you (are likely to) have paid NI which wouldn't otherwise have been payable, due to the way they have paid you. In principle, therefore, I think your employer has a responsibility - moral, not legal - to repay you this overpayment. PROVIDING that the failure was in fact theirs and the late payment was down to them, and not down to you e.g. submitting timesheets late. What does your contract actually say about payment times?

I will have to get my contract out. The late payment is absolutely down to the company and not me. I have spent hours chasing it up for them to pay the right amount but they have been very unhelpful.

theoretica

So long as you pay some NI on a normal month then it will indeed average out - you will have used up your allowance below the NI free limit for each month and whether the extra comes in one lot or divided between months makes no difference.

getmore4less

theoretica wrote: »

So long as you pay some NI on a normal month then it will indeed average out - you will have used up your allowance below the NI free limit for each month and whether the extra comes in one lot or divided between months makes no difference.

before the extra hours the OP would have been below the threshold.

Rough numbers.

Based on £937 being 7 weeks worth backpay that's around £580pm extra hours pay.
The new monthly £940 the old pay would be £360.

The PT is £672. so there is £312pm NI free to use up before the NI kicks in on the new pay.

Around £60 excess NI on the 7 weeks backpay
(£312 *(12/52) * 7 *0.12).

It will depend on the real numbers as the OP has only provided partial data. There seems to be other pay which may or may not have happened in those 7 weeks.

chrisbur

From section 7 (1) (a) of....

http://www.legislation.gov.uk/uksi/2001/1004/pdfs/uksi_20011004_en.pdf

"(a) if on any occasion a payment of earnings which would normally fall to be made at
regular interval is made otherwise than at the regular interval, it shall be treated as if
it were a payment made at that regular interval;"