TUPED at work so paid twice in once month and heavily taxed

molerat

CKhalvashi said:

This should even itself out by March, however for now the system assumes the January pay will continue until the end of the year.

We had this issue when moving from the 1st of the month (which often led to the salary being recognised on the previous month) to the last working day of the month, however it sorted itself out before the end of the tax year.

The change was purely to safeguard against this situation happening several months of the year.

Ist of the month is still the previous month as far as PAYE is concerned, the PAYE month commences on 6th and ends on the 5th.

CKhalvashi

zagfles said:

CKhalvashi said:

This should even itself out by March, however for now the system assumes the January pay will continue until the end of the year.

We had this issue when moving from the 1st of the month (which often led to the salary being recognised on the previous month) to the last working day of the month, however it sorted itself out before the end of the tax year.

The change was purely to safeguard against this situation happening several months of the year.

Nothing like the OP's situation. She is moving from 10th to 28th of previous month, that means 13 paydays this tax year. So an extra £209.60 tax which she won't get back. Moving from 1st of month to last day of month doesn't increase the number of paydays in a tax year. Yours was more likely to avoid occasional problems eg where bank holidays shifted payday into another month, which would only usually cause a temporary problem.

You are correct, apologies for this. Unfortunately, this looks to be the case.

This looks like from a tax perspective, it'll be 13 'full' paydays, which will even out if OP changes job, but unfortunately not in the same tax year, and could lead to a month with no pay at all in this case.

I appreciate this doesn't help cashflow, even if it likely will even out overall for tax purposes (which for us is until the 18th, paid on the last day of the month, prior to the change it was the 15th, so pay will be at worst 13 days behind with the rest transferred to the next month).

Savvy_Sue

Chris_English said:

I’m not clear on what the issue is. You’ve been taxed twice, but you’ve also been paid twice, so does that not mean that you now have more money in your account than you otherwise would have?

I think the issue is that the two net payments don't add up to twice the previous net monthy salary, because additional tax of £209 was deducted. 

At the moment the OP has more money in their account than they would normally, BUT it's got to last until the end of February, so need to check regular outgoing payments and dates may need to be adjusted to take account of that. 

The tax situation will settle down, but February's going to be tight.