Impact of old job monthly pay schedule affecting tax liability at new job

chrisbur

neilio wrote: »

The “isn’t quite correct” part was that I hadn’t broken down the salaries from the allowances so, in actual fact my pension now is something like 8.X% of my gross including allowances, which is 10% of the base salary then allowances added on top. That’s what I was referring to.

Yes, I know all about saving(!!). One thing I’ve learned about this forum over the years is that one really does need to divulge all kinds of information in order for people to understand. So here it goes. I had about £20,000 in savings up until around 2 years ago, but thanks to some family illnesses and other crises, these funds had depleted over time. I am not a frivolous spender and nor is my partner.

We have a mortgage and recently remortgaged to release some equity to do some debt consolidation. My mortgage repayments this month have increased by £400 a month (£200 each, my partner and I). My new job came along at the right time to meet this, or so I thought. So while I am trying to save, turns out HMRC has other ideas for the time being. So there you go.

Thank you for all your help on this thread to those who have been helpful, it is much appreciated, but you are preaching to the converted when it comes to saving. I guess I didn’t realise I had to divulge all of this before I start a thread asking for advice on why this tax situation has happened. I’d have been ok with making the same amount of money as my old job if that was going to be the case. All this traces back to my old job payday being the 6th of the month!

You did actually give full details of your allowances in your post about your pension payments, I used these in my calculation, just did not bother quoting them in my post. My figures almost exactly matched yours except for the pence as I did a quick calc.
You do not have to divulge anything to anyone on this forum, I offered the advice to try to reduce your outgoings as the only way to help that I could see. I still feel that this is your best option and wish you luck going forward from here.

badmemory

Hopefully going forward your thread will help other people changing their jobs to avoid any nasty bits coming back to bite them on the b**. You have just had the added whammy of a very unusual pay date. I am pretty sure that at some time in their past your previous employer had a big cash flow problem. They postponed their payroll for a week to after the tax month end & that meant that the PAYE bill for that month did not need to be paid. And you have paid part of the price for that.