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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Do you understand how PAYE works?

141 replies

Merryoldgoat · 17/07/2024 18:27

Just that really.

I run payroll and get queries which, to me, seem pretty basic. However as I understand tax I can’t decide if I’m being unreasonable getting irritated.

eg. Someone (a higher rate tax payer) wondering why they have paid an additional £400 in tax after getting a £1000 bonus.

To me that seems completely obvious but maybe it’s not.

so:

YABU - I get paid via a payroll and don’t understand how PAYE tax works

YANBU - I get paid via a payroll and understand how tax works and would expect tax to increase with additional payments.

OP posts:
boozeclues · 17/07/2024 18:54

Nothing surprises me anymore, it used to really irritate me, a large part of my job is to understand user needs and implement software solutions.

“User error” is a pandemic - but my job would be less well paid and less interesting if all
of us (me included!) where not a bit daft or ignorant to certain things.

As a line manger I usually field the payroll queries though and only pass over the genuine ones - like this tax code is completely wrong etc

BlissfullyLonely · 17/07/2024 18:53

Frowningprovidence · 17/07/2024 18:46

I understand how it works but I have to say I have 4 jobs and it's been quite challenging getting the right tax codes and the tax free allowance split properly.

I think people forget they have used up their tax free bit, so whole bonus is taxed and if they remember, they are still dissapointed.

I have the same issue- two jobs, but one is company director and I don’t take a wage from that, but they keep assigning my personal allowance to that and teaching me in full on my actual job!

Original poster
Merryoldgoat · 17/07/2024 18:52

leeverarch · 17/07/2024 18:50

Shame that a higher rate taxpayer isn't capable of working that one out. I hope their work doesn't include anything with numbers.😂

🤐

OP posts:
Original poster
Merryoldgoat · 17/07/2024 18:52

Comefromaway · 17/07/2024 18:50

I’ve not voted because I too work in payroll and spend a lot of time explaining such matters but unless someone tells you this in the first place, how are you to know.

But there are plenty of explanations online - before I worked in payroll I looked up how it worked because why would you not want to understand your own money?

OP posts:
Comefromaway · 17/07/2024 18:50

I’ve not voted because I too work in payroll and spend a lot of time explaining such matters but unless someone tells you this in the first place, how are you to know.

leeverarch · 17/07/2024 18:50

Shame that a higher rate taxpayer isn't capable of working that one out. I hope their work doesn't include anything with numbers.😂

Original poster
Merryoldgoat · 17/07/2024 18:48

TwoLeftSocksWithHoles · 17/07/2024 18:48

I do hope that your 'higher rate tax payer' isn't the Finance Director...😐

Nope but is senior management.

OP posts:
Greenleavesinthesun · 17/07/2024 18:48

It’s not that I don’t know how it works, I get it, and I know £400 is the correct amount, but when your paid extra and £400 has come out, it’s so painful you think, how the hell can it be £400!!

I think it’s more disbelief than being thick.

TwoLeftSocksWithHoles · 17/07/2024 18:48

I do hope that your 'higher rate tax payer' isn't the Finance Director...😐

Frowningprovidence · 17/07/2024 18:46

I understand how it works but I have to say I have 4 jobs and it's been quite challenging getting the right tax codes and the tax free allowance split properly.

I think people forget they have used up their tax free bit, so whole bonus is taxed and if they remember, they are still dissapointed.

Original poster
Merryoldgoat · 17/07/2024 18:45

As in it’s bad it’s not taught.

OP posts:
Original poster
Merryoldgoat · 17/07/2024 18:45

@BlissfullyLonely

I agree - it’s really bad. I think I might do a little explainer for some staff - maybe a PowerPoint on our intranet

OP posts:
BlissfullyLonely · 17/07/2024 18:42

I’ve voted not unreasonable, because I understand it fully. However, this sort of thing isn’t taught and so I can understand why so many people have no grasp of it.

The kind of things are what should be taught in school. how to manage bills, taxes… all should be covered

Original poster
Merryoldgoat · 17/07/2024 18:39

@Bankholidayhelp well so would I. And yes, disappointment aside, I’m glad you understand as I was wondering if it’s that complicated. I think it’s simple but I appreciate that’s my job.

OP posts:
Fleetheart · 17/07/2024 18:39

I kind of know how it works; but like the previous poster am still disappointed how much tax goes up with a bonus as it’s all at 40%

Bankholidayhelp · 17/07/2024 18:36

Can't vote.
I understand how tax works but I am always disappointed with what's left after I've had a pay rise .
But I would expect that someone who is on 40%rate to be able to compute the 40% reduction