Employer paying August's wages in July to avoid furlough contributions

wiggyclaws

Surely this can't be legal? Not to mention unfair as more tax will be deducted I think.
Any advice gratefully received! 

bradders1983

Given they can only claim 80% of a monthly salary even now it would a pointless exercise, aye.

wiggyclaws

I hadn't thought of that! 

bradders1983

Indeed, so lets say 80% is £1k and they pay you £2k in July, who are they expecting to reimburse them for the extra £1k?

If your employer is thinking of doing this then it is worth quietly pointing it out.

wiggyclaws

I will do, as it doesn't seem to help them at all. They haven't officially said this is the reason, but paydates have been the same for 5+ years and there seems no reason to change it. Just have to think of a tactful way of raising it.... 

sharpe106

The tax will still be the same if they pay you two months in one or pay it monthly. Will seem more tax at the time.

bradders1983

sharpe106 said:

The tax will still be the same if they pay you two months in one or pay it monthly. Will seem more tax at the time.

Indeed but does the employer know they wont get the full lot back if paid like that?

sharpe106

probably not  but not the OP problem. 

gettingtheresometime

This is going to be such a red flag to HMRC that I suspect your employer will be top of the list for an audit 

gettingtheresometime

sharpe106 said:

The tax will still be the same if they pay you two months in one or pay it monthly. Will seem more tax at the time.

But won't the OP pay more in NI contributions?

sharpe106

Potentially less depending on how much they earn and circumstances.
https://www.gov.uk/national-insurance-rates-letters