Has anyone had this month's payslip (10p tax rate related)?

stevedb11

Hi Mel,
I didn't say I would be voting for Mr Cameron, but I definately won't be voting Labour.
Mmmmm the "Green party" ,thanks for that;), I'm into recycling.
Steve

jem16

Elaine_Wilson wrote: »

But the changes in the tax rates only takes effect on the 18th May. So an April salary will have had the old rates applied to it. That is, there will still be a 10% band and the basic rate of 22%.

Don't know where you got this idea from.

My tax coding notice clearly states that the new tax rate of 20% applies from 6th April 2008, the same time as the personal allowances change.

My April salary has applied my new tax code and taxed me at 20%.

stevedb11

Thanks for that, I was also puzzled why the op was quoting May 18th for Tax changes.

CarolynH

Elaine_Wilson wrote: »

But the changes in the tax rates only takes effect on the 18th May. So an April salary will have had the old rates applied to it. That is, there will still be a 10% band and the basic rate of 22%.

Nope, from 6 April.

Mikeyorks

The confusion re 18th May appears to stem, understandably, from this on the HMRC site :

http://www.hmrc.gov.uk/forms/p7x.pdf

.... in isolation it looks a bit odd. And it's not clear that it only applies to additional material issued by HMRC after the Budget and after the generality of changes that apply from 6th April. The clarification is here :-


http://www.hmrc.gov.uk/paye/daytoday-start.htm

There may be more changes to make to your employees' records after the start of the new tax year as a result of the Chancellor's spring Budget statement. If so, we'll send you an update on form P7X Tax codes from 18 May and an updated Employer CD-Rom. You'll need to follow the instructions on form P7X and apply these changes from 18 May.

Mikeyorks

Not for the reasons under discussion in this thread you're not. The combined effect of the 10p / NI changes etc ... make you circa £4 per month better off at £17.5k pa. So, suspect you're not comparing like with like?

Elaine_Wilson

I don't think I made myself clear about the 18th May date.

I agree the changes in the rates apply for the whole of the tax year and thus apply from the 6th April.

However, as to the practicalities of the calculations this is not how it is usually done. Have a look at this part of the employer's bulletin.

Anyone still calculating manually will use these tables and so the effect will not be seen until the first payday after 18th May.

I use an Iris software program and that does not apply the new tables until after that date. I used to use a Sage program and in those days that operated in the same way. I suspect that all the commercial software will be written along the same lines to protect the employer from accusations of mistake should an employee leave before the 18th May.

Some employers may give effect to the changes from the 6th April and providing the employee does not leave before the 18th May there will be no repercussions. But, strictly, it is incorrect.

CarolynH

Elaine_Wilson wrote: »

I use an Iris software program and that does not apply the new tables until after that date. I used to use a Sage program and in those days that operated in the same way. I suspect that all the commercial software will be written along the same lines to protect the employer from accusations of mistake should an employee leave before the 18th May.

This usually happens like this, and the changes to the bandwidths usually happen on 18th May. This year however, there's been a long lead time (as the changes were announced some 13 months ago) So sage, Iris, etc have all programmed this in already (and anyone doing manualy calcs should be using the new system). If you check your legislation setting on your software you'll see your operating (or should be operating!) two bandwidths only.

There is the usual minor tweak to happen this year on May 18th - however this is just the usual small 'expansion' of the scope of the bandwidths. But the 10% has already gone,so you'll only be expanding the 20% and 40% bands.

This is in addition to the removal of the 10% at year end - not to faciltate it.

jem16

thriftymanc wrote: »

I get paid exactly the same amount before tax etc every single month so I'm definitely comparing like with like i.e. I've not earnt less before tax. The gross amount on my payslips is identical. All I know is that on my most recent pay day I got £35 less than I have been doing every month. So if you're saying I should be getting more, is this probably a mistake that I should follow up? I honestly don't know an awful lot about all this, all I know is that I can't afford to lose £35 a month!

If you would give us last month's and this month's figures for gross wage, tax paid and tax code we can see if there is a problem or not.

Without those nobody can help.

hotpot1000

I get £565 ill health pension a month n it's gone down £10 on 1st may, great as I'm in my 40's so no pension credits. Ta Gordon, you big piece of cheese