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Help me please work out why the net pay is down 1000 quid

(24 Posts)
LFCisTarkaDahl Fri 26-Oct-12 15:21:49

I am actually going to be physically sick as I can't work it out

Monthly pay - Gross - £3937.08

Deductions - NI - £316
Income Tax - £1448
pension - £314

Leaving - £2081

NET PAY - £1856 - where's the other 200 gone!? Why is the tax so high? - on the same salary 5 months ago it was £700 tax.

What am I missing?

PeriPathetic Fri 26-Oct-12 15:25:54

Your maths is wrong, Gross less deductions = 1859.08

Have you had a bonus this month? DH did and freaked out too 'cos he was doubling his tax threshold by mistake.

LFCisTarkaDahl Fri 26-Oct-12 15:28:23

You're right, that does leave £1859 - no bonus.

do you know why the tax doubled?

chipsandbeans Fri 26-Oct-12 15:30:02

Has your tax code changed? looks like its gone from 810L to BR to me..

MissKeithLemon Fri 26-Oct-12 15:30:21

I'd guess that your tax code has changed... possibly from a Month 1 code to a cumulative to affect your tax in that way.

Peri is right though, gross less deductions is £1859 so that is correct.

LFCisTarkaDahl Fri 26-Oct-12 15:32:28

Yes - the tax code has changed - to D0 - it's my Dh's - he changed jobs 2 months ago.

On exactly the same salary 2 months ago he was paid £2670 a month - it's now dropped to £1859!

chipsandbeans Fri 26-Oct-12 15:34:16

D0 is 40% tax with no tax free allowance, ring HMRC, for this change a letter should have been sent explaining why

NatashaBee Fri 26-Oct-12 15:34:51

Message withdrawn at poster's request.

chipsandbeans Fri 26-Oct-12 15:35:01

tax will be this high every month if it isn't changed btw

NatashaBee Fri 26-Oct-12 15:35:53

Message withdrawn at poster's request.

Lougle Fri 26-Oct-12 15:36:08

D0 is a tax code used to tell the employer to deduct tax at 40% from all earnings.

You need to find out why - they may think he is still working at his first job as well as working at this job.

LFCisTarkaDahl Fri 26-Oct-12 15:36:48

Chips you're right - according to the HMRC website he's being charged his whole income at 40%, rather than the portion that should be taxed at that.

LFCisTarkaDahl Fri 26-Oct-12 15:37:52

They definitely don't think he's working at his first job - he's a teacher grinand he's moved from the local authority pay to the college paying him.

chipsandbeans Fri 26-Oct-12 15:38:45

Is he there, get him to ring 08457 143 143 and speak to an advisor, he needs his national insurance number, this is relatively easy to solve, just damn annoying

LFCisTarkaDahl Fri 26-Oct-12 15:42:21

I'm really glad you've all figured it out - has not obviously taken the sick feeling away as our direct debits are £1900 a month - so they've basically taken away our entire disposable food and petrol money.

I had been hoping to eat this month. hmm grin

Oh - think this happened to DH when he moved jobs too; like Lougle says, HMRC haven't got in their system that he has left his first job.

So they are treating this as a second job and taxing it all at 40%.

(We also shat ourselves until it was sorted!)

chipsandbeans Fri 26-Oct-12 15:46:37

To be honest its a bit shoddy for this to happen, these days you can submit all P45/P46 information online to HMRC, for a D0 tax code to be issued there must have been some kind of time difference between the paydates. Did he not have a P45 when he left his last job?

MissKeithLemon Fri 26-Oct-12 15:53:37

LFC if you call them pronto they will issue a new code in plenty of time for next month which will mean he gets the overpaid bit back straightaway. When you get a notice (P9) telling him taht its been changed, make sure DH speaks to his payroll people so that it gets implemented correctly immediately.

Might help lessen the pain if you know its coming back sooner rather than later.

Food this month might have to be beans on toast grin

Chips too right its shoddy. So many people lend their hard earned to the Government temporarily because someone has done something wrong. I welcome the time when 'real time reporting' is rolled out as this should stop it from happening. I won't hold my breath though

LFCisTarkaDahl Fri 26-Oct-12 16:02:05

He's gone along to payroll and they've said that they accidentally inputted his second job (mentoring in the same school for £60 a month) as his main job as there was a 2 page P45 with 2 different tax codes on it hmm

They are not going to be able to guarantee he will get the money back immediately but they have updated the tax code and have calculated that he is owed more than 2 grand back shock

the whole sick feeling came about for me is because I noticed we were nearly 2 k overdrawn (which is fine, not being charged for going over as it's arranged) - and I thought we were suddenly struggling to manage.

chipsandbeans Fri 26-Oct-12 16:06:30

To be honest this RTI will not stop this happening, I do 50 payrolls a month, I submit everything online, I am vigiliant and do everything in plenty of time and they still f* up and its only because I chase them up and sort it that my employees aren't screwed over for tax.

RTI will just mean they will go for what is owed to them quicker than at the end of the financial year, doesn't mean they will be anymore efficient.

chipsandbeans Fri 26-Oct-12 16:07:24

LFC - payroll office cock up can surely mean a cash advance to you to help you through the month that can be deducted next month when the tax code is sorted. Might be worth a mention.
I'd be mortified if I made a mistake like that.

MissKeithLemon Fri 26-Oct-12 16:22:09

Yeah Chips. I supopse human error as in what has happened here will not be resolved.

I thought RT reporting would stop errors between employers though, and HMRC will be able to adjust a tax code and the employers use it immedaitely, no? So no need for P9's and the like.

Not sure though, I'm retraining to be a social worker, had enough of dealing with Her Maj's Robbers & Clowns for a living grin

MissKeithLemon Fri 26-Oct-12 16:24:41

And agree again that the payroll numpty should be issuing immediate cash advance.
I'd be mortified making a mistake like that too.... another payroll dept that doesn't check that things, even vaguely, look right before clicking send hmm

LFCisTarkaDahl Fri 26-Oct-12 16:26:46

Thanks very much to all of you. He's not asked for an advance, we'll just use the overdraft and the payroll person didn't offer - they just said they hoped now it was changed that it would be right next month.

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