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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

AIBU to expect a take home pay of roughly £920 from an annual salary of £11,745?

174 replies

AlohaMolly · 25/03/2022 06:38

A month ago, I took a new job that paid around £700 more annually than my previous job. More money on paper and also in practice because of the difference in commute. The annual salary was £11,745. Ive just been paid £787 for my first month of work and I can’t figure out how that works? I absolutely gutted as it’s roughly £150 less a month than I was earning before. Have I been really stupid? I asked about the annual salary, not the monthly one and did some rough calculations based on the NIC I paid in my last job. I feel like such a fool, this job was supposed to better my life.

OP posts:
LadyLazarus40 · 25/03/2022 17:19

@AllThatFancyPaintsAsFair

I think she may have misunderstood- it looks like the salary was the FTE. No TA job pays £20k

I just googled TA jobs and one of the first ones that came up says

“Band 2 £13,149.24-£13,680 (£18,887-£19,650 Full Time Equivalent)”

Ok it's £350 short of £20k but that's a random post on a national job site nowhere near London so I don't think you are correct @LadyLazarus40

I’m v happy to be wrong but the OP needs to read her contract v carefully - it’s a very complicated calculation they use in schools to pro rata salaries (I’ve worked in schools a long time) and she only works 26 hours a week.
LadyLazarus40 · 25/03/2022 17:24

I wonder if the pro rata salary of 11,745 was for working full time hours (say 38) so it has been pro rata’d again to the 26 hrs the OP works.

She needs to read her contract it will have the calculations in there.

MaizeAmaze · 25/03/2022 17:36

26hrs a week 44 weeks a year (39school weeks plus 5 weeks holidays/bank holidays) £9/hr would be just over 10k, so the 11k salary is actual salary.

tkwal · 25/03/2022 17:41

If this is your first month you are more than likely on an emergency tax code. Once you get your annual notification of your tax code you should get a rebate of any overpayment

MrKlaw · 25/03/2022 17:41

so then it'd be more like £980 a month so they're way off?

BarbaraofSeville · 25/03/2022 17:52

@AllThatFancyPaintsAsFair

I think she may have misunderstood- it looks like the salary was the FTE. No TA job pays £20k

I just googled TA jobs and one of the first ones that came up says

“Band 2 £13,149.24-£13,680 (£18,887-£19,650 Full Time Equivalent)”

Ok it's £350 short of £20k but that's a random post on a national job site nowhere near London so I don't think you are correct @LadyLazarus40

But no-one actually gets the £20k because the posts are term time only and usually school hours so you're paid for 26 or so hours a week for 44 weeks a year to include statutory holiday pay. Hourly rate is usually NMW or slightly above so around £12k pa.
AllThatFancyPaintsAsFair · 25/03/2022 17:59

@MaizeAmaze

26hrs a week 44 weeks a year (39school weeks plus 5 weeks holidays/bank holidays) £9/hr would be just over 10k, so the 11k salary is actual salary.
That seems right, if the 11k salary had to be reduced again for the 26.25 hours she'd be earning well below the minimum wage
BuggerOffAndGoodDayToYou · 25/03/2022 18:26

[quote airrrrAIRRRRiELLLL]@BuggerOffAndGoodDayToYou I don't understand why the holiday entitlement is complicated unless you are on different terms and conditions to the rest of us. E.g. 4 weeks of holiday pay is just added on to the 39 weeks. You can't actually take the holiday so you just get paid for 43 weeks. And regardless of how many hours a week you work, your normal weekly wage will be the amount you get for a week's holiday pay. This should all be transparent. 43 weeks salary divided into 12 monthly payments. Apologies if I have misunderstood.[/quote]
Someone who only works 39 weeks per year is not entitled to the same amount of paid holiday as someone who works 52 weeks per year.

Here is the calculation from a few years ago when i was on a lower grade but worked more hours….

AIBU to expect a take home pay of roughly £920 from an annual salary of £11,745?
Vicvicviceee · 26/03/2022 17:43

Sounds like emergency tax. You should get it paid back in your next pay, but check with your HR/payroll team that they have the correct tax code

Kentucky83 · 26/03/2022 17:46

You shouldn't be paying any income tax at all on that salary, so if you've been taxed then that's the issue. You'll need to get in touch with HMRC.

Mumontour85 · 26/03/2022 17:57

Tax code is wrong, or you were pro-rata'd. Double check payslip!

AIBU to expect a take home pay of roughly £920 from an annual salary of £11,745?
Norwegianleatherindustry · 26/03/2022 18:11

My salary is £12,500 for 15.9 hours. After deductions (no student loan but a small pension contribution) my take-home pay is £950 p/month.

Greenshed · 26/03/2022 18:18

Well, it might be that you’re on an emergency tax code, but do check it out. The annual salary you are quoting is below that at which you start paying tax, anyway - it’s £12570 I believe? (I might have this all wrong).

PigletJohn · 26/03/2022 18:31

You said you have not given them a P45 so I don't suppose the tax calculation can possibly be correct.

PigletJohn · 26/03/2022 18:32

@Greenshed

Well, it might be that you’re on an emergency tax code, but do check it out. The annual salary you are quoting is below that at which you start paying tax, anyway - it’s £12570 I believe? (I might have this all wrong).
Yes, it is.
Spotsmum · 26/03/2022 18:33

If you haven't provided them with a P45 or a New Starter Checklist, they have no choice but to put you on basic rate tax (20% of all earnings). You've clearly paid tax based on that.

Give them your P45 and get it sorted, although your tax code should reset in April anyway.

It won't be pension as you are not auto-enrolled until after three months and no pension scheme would take that much money from a low earner as a default.

GingerWit · 26/03/2022 18:34

@AlohaMolly

A month ago, I took a new job that paid around £700 more annually than my previous job. More money on paper and also in practice because of the difference in commute. The annual salary was £11,745. Ive just been paid £787 for my first month of work and I can’t figure out how that works? I absolutely gutted as it’s roughly £150 less a month than I was earning before. Have I been really stupid? I asked about the annual salary, not the monthly one and did some rough calculations based on the NIC I paid in my last job. I feel like such a fool, this job was supposed to better my life.
They've taken 20% tax from you here, so it's possible that you are on the wrong tax code, and/or emergency tax. You will also be able to keep more income as of April, because you won't have to pay any tax until you're earning over 12.5K a year. (Unless you get UC, then that extra will be deducted as usual when income increases at 55p per £1.)

I honestly think your next pay will be more though :) .

Spotsmum · 26/03/2022 18:35

Also, the comments stating you pay tax at £12,750 are incorrect. That's the standard tax code, but you may be on a different tax code because of previous years' underpayment, tax allowances, etc. Never take that as gospel.

purplebunny2012 · 26/03/2022 18:37

@AlohaMolly

I have panicked as it’s my first wage for this job, woke up at 4 to check it and have been awake ever since.

Hopefully they’ll give me my payslip this morning, but my start date was 28th of February and the pay day is 25th so I suppose there will be a discrepancy there? They didn’t ask for a P45 or P60, although I do have one to give them, so I’ll check that.

I really hope it’s a mistake or a one off because this job change was supposed to significantly improve my quality of life and, so far, I dislike the job and am pretty gutted about the pay now too! I did do due diligence as much as possible and used the calculator linked above before I accepted the job and it came out as roughly £920 I think.

You haven't given them your P45, so you're on emergency tax until you do
treesandweeds · 26/03/2022 18:52

[quote theresapossuminthekitchen]@AllThatFancyPaintsAsFair

No need to be rude. As I said, I'm not sure exactly how it works for TAs starting mid-year. What I do know, however, as I work in education for a local authority, is that TAs are not salaried workers so your point it irrelevant. It is not an annual salary, it's an hourly (totally exploitative) wage with a casual contract made to look like an annual salary - she is paid for 39 weeks work and they have given an equivalent annual salary. Her paraphrased quote about the terms of employment says this quite clearly. It is also absolutely the standard employment situation for TAs. www.tes.com/jobs/careers-advice/teaching-assistant/teaching-assistant-pay-and-conditions.

Essentially, with term-time only contracts, TAs are unemployed for the holidays (but can't claim unemployment benefits, so pretty screwed).

OP will probably have a 6 month contract - her contract will be need to be renewed before September - she will work and be paid for March, two weeks of April, c.3-4 weeks in May, June and 3-4 weeks of July + 6 months of annual statutory holiday allowance (14 days). So c.20 weeks. If this is split across the 6 months, so she gets a pay packet every month instead of nothing in August (which is what happens in the USA for teachers and used to happen in U.K. too), then it's 20 weeks pay split across 6 months (20/26). The new contract from September will pay her the full amount originally quoted, split over 12 months. 39 weeks pay + 28 days statutory holiday spread over 52 weeks (43/52) which will work out slightly more. Not to mention the fact that actually the holiday entitlements are likely to be less than the full statutory amount as the contract is not for a full year (as I said, TAs are often screwed over). It's more likely that she'll get 21 days (39/52 * 28 days).

When I put this amount into a tax calculator based on an hourly wage of around 10.40 ph (calculated from her 26.25 hr week over 39 weeks and adding in paid holidays), I get just over £800, which is not far off what OP has been paid and suggests that this is quite likely to be what has happened. Or it could be tax codes. Or both.
[/quote]
This is utter rubbish as is the post above that talks about when she started and accruing holiday and not getting paid for them. I do payroll in a school office and am responsible for all TA and teacher contacts and pay.

First you need to check your contract and see if you are paid for 38 or 39 weeks. Some TAs are not paid for inset days and claim for OT if they work them and some are. Then you should be able to see on your payslip if you have paid into LGPS the pension scheme. If you don't want to do this, by the way, you can opt out entirely or some LAs do a 50% opt out. Also, if you did not give them a P45 then previous posts stating you are probably on the incorrect tax code are probably correct.

Also, TAs, unless being employed as maternity cover are generally not employed on a fixed term contract. If you are, you should know it. If you've a permanent post then you should know that too.

Your pay, whenever you start in the year, previous posters going on about not being paid for some holidays and paid for some depending on when you are start are completely wrong, includes approx 4 weeks holiday pay. You are not paid hourly, again wrong, but annually. Your annual rate plus holiday pay will be divided by 12 months and you'll get the same each month every month.

I'm betting on wrong tax code. Those posters spouting about stuff which they have no knowledge but are just guessing should think before they post!!! No one needs incorrect guesses!

Worriedatwork1 · 26/03/2022 19:08

Trees and weeds sounds sensible and knowledgeable, I’m a HR manager and would say 90% of the time this is down to tax codes so will hopefully right itself next month

DixonD · 26/03/2022 19:10

I earn about £10,500 (can’t remember exactly) for 14 hours a week and I get around £875 a month.

DixonD · 26/03/2022 19:10

It will definitely be your tax code - this has happened to me after I left one and started another.

Same happened to my sister recently too.

Mandyjack · 26/03/2022 19:20

It's possible you've been taxed incorrectly you need to check your tax code but 700 a year more isnt going to make a massive difference

Throughtheforest2 · 26/03/2022 19:46

We had a similar panic situation for my partner but then realised he was paid on a 4 weekly, rather than monthly, basis. So 13 payslips a year, rather than 12.
I haven’t studied the numbers but could it be this? As you refer to a 4 week period early on in thread