PAYE and change of payment cycle

306chris

I have been working at the same place for four years on monthly pay and have been quite happy doing so.


For some strange reason they have decided to put all employees (excluding mangers) onto weekly pay despite the costs. I am not happy about this but so long as I getting paid I can live with it.


Anyhow, I have just received my first weekly pay slip and it shows that NI has been paid but no PAYE. My tax code is 1156L.


I have been paying PAYE for the last four years on my monthly pay.


Now some of my colleagues think that you have to earn 11560 in the year and then start paying tax, where as I thought you started paying tax straight away if your earnings are high enough.


Can somebody clarify who is correct?

Dazed_and_confused

You are correct, if weekly pay, when annualised, is more than your tax code allows you to earn tax free then you should have had some tax deducted.

Tax code 1156L is equivalent to £222+/week before tax needs to be deducted.

Are you are to post the details from your payslip so we can try and see what's gone wrong.

Weekly to monthly makes sense as payroll running costs could reduce but monthly to weekly is an odd one, 12 jobs a year has suddenly become 52!

306chris

I have tried to put a copy of the payslip up, personal details cut out

It is strange that they seem to be going backward but they think it will improve staff retention as a lot drivers come from agencies (used to weekly) and then can't manage monthly.


image removed now the question is answered

Dazed_and_confused

That payslip is for week 2 of the tax year, did you receive a payment in week 1 (6-12 April)?

Info not that's your answer, you have received one weeks pay after two weeks of the year so the PAYE rules see that as average pay of approx £184, less than your allowances due via your tax code.

If you are paid the same next week your average pay will become £245/week and you will start paying tax.

306chris

Kinda makes sense to me.

We are working a week in hand. The first weeks pay was payment of overtime for March as such I had none owing and didn't receive a payslip as I wasn't owed anything.

Dazed_and_confused

I might be being incredibly thick here but it sounds like you've been there 4 years and have just been paid the princely sum of nothing for a weeks work?

306chris

I was paid 25.03 and that was for pay up to the end of march.

The pay that i am getting tomorrow is for the first week of april.

This weeks pay will be paid next friday.

Ita all good just a pain when all your bills go out a set time of the month and now its weekly pay.

t0rt0ise

306chris wrote: »

Ita all good just a pain when all your bills go out a set time of the month and now its weekly pay.

Yes, I know that one. I am paid 4 weekly so a different day each month but still all direct debits go out monthly so I have to ensure I've enough to cover them in reserve.


I also get a small pension from a previous job which is paid monthly. As I'm slightly obsessive about keeping tabs on finances, it makes for a complicated spreadsheet!

System

t0rt0ise wrote: »

Yes, I know that one. I am paid 4 weekly so a different day each month but still all direct debits go out monthly so I have to ensure I've enough to cover them in reserve.


I also get a small pension from a previous job which is paid monthly. As I'm slightly obsessive about keeping tabs on finances, it makes for a complicated spreadsheet!

I get four weekly paid too. I use two bank accounts. I get paid in one. This bank account is the one that my direct debits come from too and are spread out throughout the month. On pay day, I work out which DDs are coming out until the next pay day and transfer the difference of my balance and bills (with a c£20 cushion) into another bank account with the same bank - they are linked. The 2nd bank account is my general spending account.

I normally miss one DD per 4 weeks - sadly not this one and I like the 1st pay in the month I get twice paid as no mortgage and service charge DD!