We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Employer change and out of synch pay days.
CurlyT
Posts: 18 Forumite
in Cutting tax
Hi,
I am due to change employers at the end of the month. I will be paid on 26th April from my current employer including an extra chunk for unpaid holiday. My new employer will pay me on the 15th October for a full month (as they pay 2 weeks in arrears and 2 in advance.)
My question would be, as I am PAYE, HMRC will tax me, I am assuming, as though I have suddenly increased my salary to a large amount (as I will be receiving 2 monthly salaries within one monthly cycle.) I am also assuming that this will settle down over the following months as they realise what my true pay will be?
Is it at all possible to calculate what I should be paying (within a few pounds) over the next few months so I could keep a check or just rely on the HMRC to balance everything out?
Or is all the above incorrect and none of it is likely to happen?
Thanks in advance.
Curly T.
I am due to change employers at the end of the month. I will be paid on 26th April from my current employer including an extra chunk for unpaid holiday. My new employer will pay me on the 15th October for a full month (as they pay 2 weeks in arrears and 2 in advance.)
My question would be, as I am PAYE, HMRC will tax me, I am assuming, as though I have suddenly increased my salary to a large amount (as I will be receiving 2 monthly salaries within one monthly cycle.) I am also assuming that this will settle down over the following months as they realise what my true pay will be?
Is it at all possible to calculate what I should be paying (within a few pounds) over the next few months so I could keep a check or just rely on the HMRC to balance everything out?
Or is all the above incorrect and none of it is likely to happen?
Thanks in advance.
Curly T.
0
Comments
-
I presume you mean 26th September?How are you receiving two monthly payments in one monthly cycle? It seems to me that you are receiving one payment in month 6 (6th September to 5th October) and one in month 7 (6th October to 5th November). Don’t see any issue at all.1
-
The pay you receive on the 26th September (assuming this is what you meant) will be month 6 & the pay you receive on 15th October will be month 7 in terms of tax months. So there is nothing to worry about. Hopefully your former employer will have produced your P45 for you so you can give this to your new one.1
-
Thanks, yes, 26th September.
I was thinking that my payment cycle was personal to me, whereas your posts appear to confirm it is a set standard so indeed my two pay days will fall in different months.
Thanks again!
CurlyT0 -
Your payment cycle is personal to you and the companies you work for.
But whatever that happens to be then falls into the appropriate tax week or month and stipulated by HMRC.
Being paid twice in one tax month is where (minor) hiccups can occur.0
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.5K Work, Benefits & Business
- 615.3K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards