Is it normal for the amount of tax and NI paid to vary month to month for the same basic salary?

w00519772

I have noticed that the proportion of tax and national insurance I pay appears to of increased this month. Tax by about 0.5% and NI by about 0.3%

Q1) I received an inflationary pay rise this month and it was backdated to January 2019. My salary has not gone above the higher rate threshold of £46,351 as a result of the backdated payments.

Q2) Is it normal for the amount of tax and national insurance to vary month to month? (sometimes as little as 20p)?

[Deleted User]

Hi,


it's maybe to do with rounding up, try this wee gadget for idea of tax.

JCS1

Are you paid monthly? And are you talking about April pay? So the first month of the new tax year?

w00519772

JCS1 wrote: »

Are you paid monthly? And are you talking about April pay? So the first month of the new tax year?

Yes I am. However, the fluctuations are every month - usually as little as 20p. However, this month it was much more than normal.

Savvy_Sue

I find that mine fluctuates about every three months, by not very much. Which makes me sure that it is a rounding issue.

It's likely that your tax code changed in April, which would make a difference. And also likely (or at least possible) that your auto enrolment pension contributions changed too.

nick74

w00519772 wrote: »

Yes I am. However, the fluctuations are every month - usually as little as 20p. However, this month it was much more than normal.

It is quite common for net pay to fluctuate up and down by exactly 20p per month due to rounding of the PAYE calculations (20p is 20% of £1). It will average out over the tax year however.

Also net pay almost always changes in April each year due to a change of tax code and NI band changes at the start of the new tax year.

JCS1

Most software calculate tax on whole pounds, hence the small changes that can happen as the YTD figure changes.

General_Grant

w00519772 wrote: »

I have noticed that the proportion of tax and national insurance I pay appears to of increased this month. Tax by about 0.5% and NI by about 0.3%

Q1) I received an inflationary pay rise this month and it was backdated to January 2019. My salary has not gone above the higher rate threshold of £46,351 as a result of the backdated payments.

Q2) Is it normal for the amount of tax and national insurance to vary month to month? (sometimes as little as 20p)?

But, because you have now received the extra pay in respect of the final months of the last tax year but paid in this one, the payroll system for income tax will assume that the pay you received in April and May combined will be one sixth of what you will get for the whole year.

If you multiply by 6 the combined April and May gross amounts would that move you into the 40% band for some of it?

If that is the case and you obviously don't receive that much as the months go on, you will find your tax will come down little by little.

chrisbur

If you want to know exactly what has caused the difference you need to give exact figures then an exact explanation of how the tax was calculated and NI can be given. Just give the following from the payslips that you are comparing....
Taxable gross
Ni able gross if different
Tax code/basis
Month number
Taxable gross to date
Tax paid to date

And from the payslip before each above one the taxable gross to date
Not needed for any that are for month 1