Final Payslip, Negative PAYE?

mwt_2

Hi All, just had my final payslip for my previous job. I worked only 6 days in Ocotober, and the gross amount does match that, but for some reason the PAYE tax figure is showing as a negative figure, and it's several hundred pounds??? Is this a blatant mistake by my old employer that's likely to come back and bite me?

Comms69

Tax rebate, was there a change in tax code?

mwt_2

I had a tax code change earlier in the year, around April I think. It's the same tax code on this payslip though...

chrisbur

mwt wrote: »

I had a tax code change earlier in the year, around April I think. It's the same tax code on this payslip though...

The only way to check if this is correct is if you give full details
Tax code / basis
Taxable gross
Tax paid
Week/Month number
Taxable gross to date
Tax paid to date

General_Grant

chrisbur is correct.

But, if you worked only until 6 October, your pay will be less than a quarter of what it would be for a full month, won't it?
Your pay for the year to date therefore looks lower than it would be if you had continued working for the whole month and therefore you have over-paid tax (which assumes you will continue earning at the same rate as in the year-to-date figure.

Sorry that isn't a very good way of putting it but you may work it out!

mwt_2

I sort of understand what you are saying, if you look at just the pay from my previous employer. However, I've gone straight in to a new role so surely I'm going to have to pay the refund straight back?

BoGoF

mwt wrote: »

I sort of understand what you are saying, if you look at just the pay from my previous employer. However, I've gone straight in to a new role so surely I'm going to have to pay the refund straight back?

Probably, but that is the way PAYE works. Your personal allowance for October has been used in your old job so assuming you get paid from new employer at end of October then more tax than normal will be due.......assuming you have given them your P45.

Savvy_Sue

mwt wrote: »

I sort of understand what you are saying, if you look at just the pay from my previous employer. However, I've gone straight in to a new role so surely I'm going to have to pay the refund straight back?

When your employer calculates the tax due on your salary, the assumption is generally that whatever you earn THAT MONTH will be the same amount next month, until the end of the tax year. So at the end of one employment, it's not uncommon to get a tax refund if you've not worked a full month.

Your P45 will show total earned in the current tax year, and total tax paid. When a new employer plugs those figures in, your salary in that new job will be added to the gross, the new monthly salary will be predicted as your new monthly salary for the rest of the tax year, and your tax liability will be calculated on those assumptions. This may mean a refund, or extra tax to pay.

At the end of month two, the same things happens, but by then you probably ARE being paid what you'll get from then until the end of the tax year, so it starts to settle down!