Zero hours contract tax problem

Barneys_Mom

Hi

I have a zero hours contract and this month my employers managed to not input the 62.5 hours that I was due. When I complained they did a BACS transfer (with no payslip produced) but from this they deducted emergency tax and national insurance. Is this right when they have my tax code (I do not pay tax normally) and know that I am nowhere near the national insurance threshold. They have stated that HMRC state that they must charge tax and NI on these payments (it is a very poor payroll department who often get our wages wrong). Is this correct and is this an actual wage? Next month I should get the 62.5 hours on my payslip along with this month's hours and they will deduct the money they paid by BACS transfer this month.

Any advice greatly appreciated.

Dazed_and_confused

If no payslip was produced how do you know what tax and national insurance has been deducted?

The emergency tax code allows £958 to be paid each month before tax needs to be deducted. Is your hourly rate sufficient for your 62.5 hours to result in tax being deducted?

I'm not sure why this payment would be any different to normal but really only your employer can answer that.

Barneys_Mom

I know the tax and national insurance has been deducted because I initially worked out the gross for 62.5 hours and I could see exactly 32 % had been deducted from the payment (20% tax and 12% national insurance). This was also confirmed by payroll when they stated that HMRC told them that this must be deducted.

Barneys_Mom

Sorry forgot to say that 62.5 hours would be nowhere near £958.

Madbags

The trouble is with doing it this way is next month you might pay tax and potentially NI because they're effectively going to put through 2 months worth of payroll in one month and then deduct the net amount they've paid you for this month.

They should really correct their error and amend their records for the month you should have been paid and do it correctly.

The tax part wouldn't normally be an issue as it would work itself out the following month but as were approaching April and everything goes back to zero, you may have to claim that overpaid tax back from the HMRC. As for the NI you might pay, that's usually a much bigger pain.