Final pay and accrued holiday pay / tax and ni issue.

Lindsey614614

Hi could anyone help to confirm that a higher rate of tax and ni is applied for final pay ?
Issue is been deducted £323 combined tax and ni from gross of £1354.
Usual paid weekly wage, £1354 is roughly 4 weeks .Should it not have been 4X usual deductions ? 
Thanks 

Savvy_Sue

I can't do the maths in my head, but as you are usually paid weekly, it could be because your final wage was 4 times the usual. 

The PAYE system looks at what you've been paid, and the normal frequency of payments, and goes "ah yes, so far this year this person has been paid £x. This week they've been paid £y, and presumably they will continue to receive £y pw until the end of the tax year." 

You know that's not true, but this will sort itself out. Are you starting a new job immediately? 

Xbigman

If you've been paid a weeks pay plus 3 weeks holiday pay all in the same week then the 3 weeks holiday pay has no tax or NI allowances and you've been taxed on all of it as one big weeks pay. If you're not working for the next 3 weeks you will eventually get the tax back but not the NI.

Darren

Lindsey614614

Hi thanks for the reply. Starting new job in 2 weeks.
lot more to this than I put.. Yes usual pay £272 weekly net of £255 and deductions of £16 - £17 weekly..so massive jump to £323.
Left on 2nd January and was paid on the 8th but all accrued holiday pay was not paid. just wage up to week ending 3rd. paid tax and ni on that had pay slip week later for that.  Letter sent about Holiday pay on advice of ACAS before taking action . took till 29th to get that payment..so would have left it with ACAS as albeit late was paid. Just a amount in bank and was not sure if that was or is correct as not sure what entitlement was or how worked out.  Emailed Friday asking for a breakdown of holiday pay and explanation about deductions made and pointed out I wanted a wage slip for this amount that had been in to bank friday 29th  also reminder to forward p45.
Think will have to going back to ACAS as now ( today had pay slip ) only .Again stating week ending 3rd.That not adding up either. This one states wage and holiday pay both added together and that's the amount of £1354 with deductions of £323 . claims net paid into bank on 8TH.
1. wage paid 8TH tax and ni deducted..so already paid on that.
2. Holiday pay amount just states holiday pay this was paid on 29TH.
First thought was been charged twice for the wage ? second something stinks . checked this one that contradicts 
 amounts on pay slip already received for week ending 3rd. Yearly Gross to date / tax etc do not add at all from the 2 weeks before . week ending 27th Dec / week ending 3rd up nothing else enclosed .no explanation / breakdown on holiday pay /no pay slip for the amount on 29TH. no p45.
Bloody Nightmare 

Dazed_and_C0nfused

The final payment might have been treated as a payment after leaving and code 0T used.
0T mean no tax free allowances have been used so the income on that particular payslip will be taxed at 20% (or a mix of 20% and 40%).

The tax code should show on your pay slip.

If you have a P45 from payment made on the 8th you are likely to get a tax refund the first time your new employer pays you.  Assuming you were on a cumulative tax code.

Lindsey614614

Hi . On slip shown as tax code 1250L ..Normal code that is on all others.
Not had p45 as yet.
Another strange one is on the original slip dated week ending 3rd. it says THIS WEEK EMPLOYER NATIONAL INSURANCE £14.24
on this one sent today...says THIS WEEK EMPLOYER NATIONAL INSURANCE  £163.55???

Lindsey614614

So complete confusion after going back to ACAS . Quite a difficult call to hear as advisor was working from home and was having issues with kiddies playing up in the background. But the gist of this after may repeats  was .Told that I have to state what amount I think is STILL owed, In order to bring a tribunal case.  Already stated that I had No idea on that as accrued holiday pay just states amount, not days or hours or how worked out although asked been ignored. Same goes for The withholding of wages / the right to do this ,Ignored on that as well. SHE SAID not sure if that would be a contact breach ? unlawful deduction of wages as had now been paid. Did not seem interested at all. either about The ductions of tax and NI . 2 slips for the same period the missing slip for payment received on 29th. Amounts not correct on slips , All this could be brought out at tribunal she said, But can only do that if I can state what is owed.
Advised to sort that out first  and get back to them if I am still owed money. Did Not seem interested in money that was withheld for 3 weeks. then paid, or the fact that one slip claims that £255 was paid in to bank on the  8th,It was. Next slip claims £1.030 paid in on 8th, was not . And says not really a issue if payslip not given ?  or p45 not received as new employer would use starter kit ? And could not comment on the tax/Insurance as would need to contact HMRC.
Then stated that I could then do early conciliation first before tribunal case. online form.. BUT would still need to state the amount I am claiming.
Losing the will to live on this.
Any help on this appreciated.

p00hsticks

Lindsey614614 said:

Hi . On slip shown as tax code 1250L ..Normal code that is on all others.
Not had p45 as yet.
Another strange one is on the original slip dated week ending 3rd. it says THIS WEEK EMPLOYER NATIONAL INSURANCE £14.24
on this one sent today...says THIS WEEK EMPLOYER NATIONAL INSURANCE  £163.55???

My understanding is that if you are paid weekly, then your employer has to deduct 12% NI on anything over the primary threshold of £183 a week up to the upper earnings limit of £962 a week - beyond that the rate is 2%.

so I make it that your normal weekly pay of £272 should produce an NI figure of (272-183) x 12% = £10.68

But if the final £1354 is put through as a weekly payment then the NI to be deducted is

(962-183) x 12% + (1354 -962) x 1% = £93.48 + £7.84  = £101.32

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2020-to-2021

So if my calculations are correct (please check them!) it certainly looks as if that NI figure is higher than it ought to be.

getmore4less

EMPLOYEE NI
above the lower limit(£183) and below upper(£962)  is 12%. above then 2%

EMPLOYER NI  is not paid by you unless you are umbrella?
above £169  13.8%

Can you put all the numbers  from your pay slips

£272pw should have tax around £4.20 and NI around £10.70  roughly £15.
That is  in line with a normal week/

£1354 paid out as a separate week,  tax around £242   NI £101  total £343 

Thrugelmir

If company payroll for January has only recently been completed. Then P45's probably haven't been produced yet. Wait and see what figures these state. 

Any overpayment of tax will wash out once you start with new employer. 

Employers NIC is the company's liability. Unlikely the payroll software system will calculate this amount incorrectly. As there's no manual intervention involved. 

Lindsey614614

2 weeks notice given and worked, last day 2nd Jan. expecting week wage and 9 months of accrued Holiday pay ON 8th next available pay day after leaving. 
on 8th got into bank £255 31 ( just wage)
wrote to company on 11th asking for payment of holiday pay/ with breakdown  that according to ACAS  should have been paid on 8th.  Asked for  payslip for the payment (wage) received and p45. asked for outstanding payment  holiday pay to be made prefer 15th and no later than 22nd. Letter not replied to. nothing in bank on 15th.
On 16th had 3 slips in post, 2 for  weeks ending 20th and 27th Dec not received over christmas period. and one dated week ending 3rd Jan...on this hrs X pay rate....Gross £272.21..Deductions Tax £6.20.....NI £10.70...total £16.90...net of £255.31 presuming correct..
Waited for 22nd for the Holiday payment nothing in bank. Email sent saying if payment not received with breakdown and slip will be applying to ACAS for tribunal certificate. Also reminder re p45.
Payment Arrived in bank on 29th of £774.98...no slip or breakdown of .
Then this Tuesday 2nd had another slip in post. was not a slip for the £774.98.
But another slip for week ending 3rd..on this one is Hrs X rate the wage of £272.21 and below that says HOLIDAY PAY £1,082.00 no breakdown of this just amount.
BOTH added together total Gross £1,082.00  Deductions Tax £222.60   NI £101.32
Total £323.92    leaving £1,030.29 NET...also says paid by credit transfer on 08/01/2021. Did not.
MENTIONED the EMPLOYER NI of £163.55 as on second slip under this week that is what is printed.. and the first slip same date Says EMPLOYER  NI  £14.24 / now shows as £163.55 ..was trying to show difference between the £14.24 they claimed to paid on the wage....and now added Holiday pay to that..so jumped from £14.24 to £163.55.
Hope this makes more sense....Can of course put in full the details of the 2 slips...To check amounts. But was not paid how they are claiming anyway.
Thank you for all your help