Have I been overpaid? New job.

Gazelle1985

I started a new job on 3rd Jan, and was paid yesterday for January and I can't work out how it's been calculated. Can anyone help?

Gross pay: £4,772.73 (assuming this is lower to account for taking off the 1st and 2nd of Jan before my employment started)

Net pay: £3,448.30

Deductions:
Tax: £697.20
NI: £388.59
Pension: £238.64

Tax code: 1257L

Online calculators seem to suggest my net pay should be £3,332.85?

Penguin_

It all depends on your YTD figures.

Gazelle1985

Oh really, I didn't know that. YTD is £40,425.27

JCS1

we will need your YTD taxable pay as well as tax paid figure.

Gazelle1985

So YTD taxable pay is £40,425.27, and tax paid YTD is £5,940.80.

chrisbur

Gazelle1985 said:

So YTD taxable pay is £40,425.27, and tax paid YTD is £5,940.80.

These figures suggest that the gross to date given is your total gross to date rather than your taxable gross to date.  Somewhere on your payslip I suspect is a figure of £40186.63 for taxable gross to date.  The difference is your pension contribution which is deducted before tax is calculated.  If this is correct the tax figure is spot on, assuming that the correct past employment figures have been entered.  Hopefully also on your payslip will be figures for pay and tax in previous employment which should agree with your P45 part 1A details.

EDIT  Not sure if you used the taxable gross in the tax calculator but even if you did it would give the wrong answer as whatever you put in for a month is assumed to be what you have been paid every month up to then, which is not the case here as your previous pay was lower.  This means you have some spare 20% tax band liability before paying at 40% so lowering your tax for this first month pay.  

Gazelle1985

Thank you, I can't see taxable gross to date anywhere on my payslip but hopefully it is correct and I won't have to pay anything back!

Gazelle1985

chrisbur said:

Gazelle1985 said:

So YTD taxable pay is £40,425.27, and tax paid YTD is £5,940.80.

These figures suggest that the gross to date given is your total gross to date rather than your taxable gross to date.  Somewhere on your payslip I suspect is a figure of £40186.63 for taxable gross to date.  The difference is your pension contribution which is deducted before tax is calculated.  If this is correct the tax figure is spot on, assuming that the correct past employment figures have been entered.  Hopefully also on your payslip will be figures for pay and tax in previous employment which should agree with your P45 part 1A details.

EDIT  Not sure if you used the taxable gross in the tax calculator but even if you did it would give the wrong answer as whatever you put in for a month is assumed to be what you have been paid every month up to then, which is not the case here as your previous pay was lower.  This means you have some spare 20% tax band liability before paying at 40% so lowering your tax for this first month pay.  

Ahhh OK that makes sense - thanks so much for explaining!

chrisbur

Gazelle1985 said:

Thank you, I can't see taxable gross to date anywhere on my payslip but hopefully it is correct and I won't have to pay anything back!

Taxable gross to date is £40186.63
Tax allowance at month 10 is £10482.60
So tax due on £29704
As at month 10 the 20% band is £31417 so no 40% tax due
20% of £29704  is £5940.80

As exact figures going forward not known but looks like you might avoid the 40% tax band this year or possibly just creep into it; but on these earnings you will pay some 40% tax next year, so net pay will drop then.