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New job - salary

7 replies

Newjob20 · 23/09/2021 22:20

Posting for traffic. I'm so embarrassed but I'm useless with things like this and it just confuses the hell out of me tbh!

I start my new job next week earning around 22k. My previous job paid the same amount but it was spread across 12 monthly payments. The new job spreads it over 13 instead (can't remember why). Doesn't that mean I'll pay more tax though? Apologies if I've misunderstood but I've not experienced this before...

OP posts:
feeona123 · 23/09/2021 22:21

Tax is a % on how much you earn, how often it’s paid does not change that.

BrendaBubbles · 23/09/2021 22:22

They’re paying you every four weeks instead of monthly. 13 * 4 = 52.

AlexaShutUp · 23/09/2021 22:23

Tax is calculated on annual income, so it shouldn't make any difference to what you have to pay.

KEH1982 · 23/09/2021 22:25

13 payments just means you are paid every four weeks as opposed to a set date each month.

Tax is calculated on your earnings within the pay period - it takes into account total earnings and tax already paid for the tax year up to date also.

You won't be paying any more tax, it will just be spread over the 13 payments like your pay is.

BethAfra · 23/09/2021 22:25

No, you won't pay more tax - payroll taxes are calculated taking the number of pay periods per year into account.

Newjob20 · 24/09/2021 00:30

Thank you!! Makes sense now

OP posts:
Crafting1Queen · 24/09/2021 01:33

Hi @NewJob20,

Firstly, congratulations on your new job, I hope you enjoy it.

I used to be paid like this, 13 payslips over the year/wages in the bank every 4 weeks, and it took a wee bit of getting used to at first, actually you can sometimes get 2 wages being paid in, in a calendar month, as most months are 30/31 days long, but there is a wee surprise "bonus" once a year, which I'll get to in a minute.

Be prepared for your first/subsequent payslips to show your take home wage is be slightly less than your current take home pay. Although it's the same salary, it's spread over 13 pay packets, not 12, so don't worry, you are not being cheated or done, by your new company.

(Not trying to worry you here lol) but you will need to double check that any standing orders or direct debits you have set up, etc, will be covered with your slightly lesser 4 weekly income, and it may be worth any transfers you may have for say a savings account, that once you know what your usual 4 weekly take home pay will be, you divide up the years worth that you save, by 13 instead of 12, and set up the transfer to come out at that amount every 4 weeks instead. If you have a bit of leeway with your wages, and are able to usually have a bit left over each month currently, you may not need to do that, but just a suggestion, in case you don't have a bit of a cushion re your income.

It will also take a wee while to get used to your pay going into your account at "weird" times of the month, the 4th, 12, 18th and so on, instead of a set date, like the 27th. So just be aware that if you check your account say a week or two after you're used to be getting paid & know that all your bills etc have come out of your account on the same date say at the end of the month/1st of the month (to ensure your wages had cleared) just remember you haven't come into a windfall, so don't go on a spending spree thinking well that's what I've got spare this month woohoo (can you tell I caught myself out like that once.......).

However, and finally, onto the good news/wee surprise, once a year you will actually find that you have a wage being paid into your bank which really will feel like free money, because...... all your standing orders/rent/mortgage/insurance if you pay monthly/council tax/tv licence/mobile phone/internet/tv packages etc ALL COME OUT OF YOUR ACCOUNT ONCE A MONTH, ie 12 PAYMENTS over the year, so woo hoo, the money from the 13th Wage Packet isn't used/needed to pay bills as such, and that's when you can have a wee splurge if you fancy (or save lol).

Anyway, that was an essay, sorry, but just wanted to highlight some of the pros and cons (& hopefully you can avoid any pitfalls) as a result of being paid over 13 pay packets.

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