Confusing Payslip!

Luis-FlightManWithAPlan

Hello! I need some help with my first ever payslip!

I opened my mail today to find something puzzling.... im on the emergency tax code and normaly National Insurace Number so I was expecting to pay roughly 25-30 % for both on my earnings......

Except it has this :

Gross Pay £350 (roughly)

Taxable Pay £350 Tax Paid £0

NIable Pay £350 NI Paid £0

TOTAL PAYMENT £350 DEDUCTIONS £0

Then right at the bottom NET PAY £350

So it appears on the payslip anyway that I havnt been charged any NI or TAX???

I havn't checked my bank yet but im asuming that ill get £350 in my bank.

Is this an error or normal for a first pay slip? Will I get charged or have I beaten the system :rotfl: ) Ok Ill rephrase that....When WILL I get charged?

Many thanks!

grahamliza4

You must earn over £425 a month for deductions to kick in - if you only ever earn £350/month you are still within your 'free-pay' tax allowance. enjoy!

Luis-FlightManWithAPlan

grahamliza4 wrote: »

You must earn over £425 a month for deductions to kick in - if you only ever earn £350/month you are still within your 'free-pay' tax allowance. enjoy!

Your joking me????? :O Sobasically as long as I earn under £425 a month I wont pay tax or NI? and if I then do go over the threshold will I have to pay a backlog of tax and NI? Just seems too good to be true!!!

calleyw

Don't forget if that if you don't pay NI then you are not entitled to certain benefits such as IB also you are not getting your stamp paid towards your state pension.

So it might seem like a great deal but you do loose out in the end.


Yours


Calley

chrisbur

Luis-FlightManWithAPlan wrote: »

Your joking me????? :O Sobasically as long as I earn under £425 a month I wont pay tax or NI? and if I then do go over the threshold will I have to pay a backlog of tax and NI? Just seems too good to be true!!!

It may not be quite as simple as that but I need more information to tell.
I assume that you are monthly paid if you are weekly then something has gone wrong.
Is this your first payment from this employer?
If this is the case is this your normal salary or is it for a part month?
If it is for a part month it may overlap with a payment you have already recieved from your old employer, if this is the case there may be some tax due which will be collected later.
Do you have a P45 yet from your old employer, if so can you advise earnings tax paid and month or week number, and also the month number on your new payslip. From this I can advise if there is an overlap and whether tax is owing or not.

Luis-FlightManWithAPlan

chrisbur wrote: »

It may not be quite as simple as that but I need more information to tell.
I assume that you are monthly paid if you are weekly then something has gone wrong.
Is this your first payment from this employer?
If this is the case is this your normal salary or is it for a part month?
If it is for a part month it may overlap with a payment you have already recieved from your old employer, if this is the case there may be some tax due which will be collected later.
Do you have a P45 yet from your old employer, if so can you advise earnings tax paid and month or week number, and also the month number on your new payslip. From this I can advise if there is an overlap and whether tax is owing or not.

Hi thanks for your replys.

Im paid monthly
This is my normal salary as I get paid every month on the last working day.
I only worked 3 out of the 4 weeks as I started in the first week of Jan
I never had an old employer as this is my first real job.
I gave my P45 (from the job centre) into them,the number at the top of the form is the emergency code alone with the standard A( I think) NI number.

Any advice would be greatly appreciated.

Also what is IB? thanks!

seven-day-weekend

IB = Incapacity Benefit, a State Benefit which can be claimed if you are off work sick, once your Statutory Sick Pay (paid by your employer) has stopped and providing you have paid enough National Insurance Contributions.

(edited to remove incorrect information)

calleyw

seven-day-weekend wrote: »

IB = Incapacity Benefit, a State Benefit which can be claimed if you are off work sick, once your Statutory Sick Pay (paid by your employer) has stopped and providing you have paid enough National Insurance Contributions.

It may be worth your while paying Voluntary NI Contributions (about £8 a week) to help you to qualify for this Benefit (and also towards your State Pension - however you have thirty years to do that). However, I stress these are Voluntary, you don't have to pay them.

Are you sure that Voluntary NI covers you for IB as according to this it does not only Class 1 contributions count.
Class 3

Class 3 (voluntary contributions) count towards bereavement benefits and
Retirement Pension.
From this web site:
http://www.adviceguide.org.uk/index/life/benefits/national_insurance_contributions_and_benefits.htm



Yours



Calley

seven-day-weekend

You're right Calley.

Senior moment there.

OP, ignore most of what I said in my last post!

(In fact I'll edit it).

chrisbur

Luis-FlightManWithAPlan wrote: »

Hi thanks for your replys.

Im paid monthly
This is my normal salary as I get paid every month on the last working day.
I only worked 3 out of the 4 weeks as I started in the first week of Jan
I never had an old employer as this is my first real job.
I gave my P45 (from the job centre) into them,the number at the top of the form is the emergency code alone with the standard A( I think) NI number.

Any advice would be greatly appreciated.

Also what is IB? thanks!

On these details it is very unlikely that there will be any overlap of allowances, so very unlikely that there will be any adjustment coming in the future. (assuming that you get the 522L code or something close to it and do not have any other significant taxable income eg savings interest)

Assuming the above and if your earnings continue at £350 a month or thereabouts you will have no tax or NI deducted.

I obviously do not know your cicumstances but this is a very low income, you may be entitled to some benefits, indeed you may already be getting them, but if not have a look at http://www.entitledto.co.uk/

chrisbur

With referance to the paying of national insurance to get the various benefits, you need earnings at or above the lower earnings limit £87 per week or £377 a month to get the benefits but you do not pay NI untill you reach the earnings threshold £100 per week £435 per month. So you can qualify for the benefits without actually paying any NI if you earn between these figures.