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Original poster

Payslip confusion driving me crazy

29 replies

lalahotpantsl · 26/01/2023 17:46

Hi there I'm really hoping that someone who understands payslips can help me out with why our numbers are coming up short every week?

My husband works 39 hours a week and gets paid £15 an hour, even with the deductions of tax NI and pension I don't think he's being paid enough every week but the payslips are so confusing that I can't work it out.
He's doesn't get paid for having holidays as he took the higher rate instead

Any help.would be much appreciated

OP posts:
Kazzyhoward · 26/01/2023 19:08

Can you post a picture of a payslip with his name and NiNo blocked out? Can't really help without seeing the numbers.

Yesthatismychildsigh · 26/01/2023 19:11

Nobody can help without any details.

jessieminto · 26/01/2023 19:18

We also need to know his pay/employment status. Choosing a higher hourly rate instead of holiday pay, but also getting a payslip suggests he may have a non-standard working agreement. Is he employed through an umbrella company? And if so, is the missing money the margin the umbrella takes for processing his pay?

FitAt50 · 26/01/2023 19:22

Use this website and put in his details - its very simple

www.thesalarycalculator.co.uk/hourly.php

Livinghappy · 26/01/2023 19:24

Use the salary calculator- it might be tax code which means higher tax.

tartlets · 26/01/2023 19:28

lalahotpantsl · 26/01/2023 17:46

Hi there I'm really hoping that someone who understands payslips can help me out with why our numbers are coming up short every week?

My husband works 39 hours a week and gets paid £15 an hour, even with the deductions of tax NI and pension I don't think he's being paid enough every week but the payslips are so confusing that I can't work it out.
He's doesn't get paid for having holidays as he took the higher rate instead

Any help.would be much appreciated

So he's a contractor??? If he is an employee he must legally have 5.6 weeks paid holiday- there's no opt out.

if he's a contractor is he construction industry (and therefore CIS and would be asked for invoices etc) or working under an umbrella company (if so you need to look up IR35)

RemindMeToRemember · 26/01/2023 19:28

Does he have an unpaid lunch hour?

Kazzyhoward · 26/01/2023 19:32

If he's a contractor working through an umbrella, there'll be other deductions from his "rate", such as employers NIC, apprenticeship levy and the umbrella firms' administration fee.

Alarae · 26/01/2023 19:33

Is he being paid via an umbrella company? If he is, he may also be paying employers NICs as well as his own.

Original poster
lalahotpantsl · 27/01/2023 07:54

jessieminto · 26/01/2023 19:18

We also need to know his pay/employment status. Choosing a higher hourly rate instead of holiday pay, but also getting a payslip suggests he may have a non-standard working agreement. Is he employed through an umbrella company? And if so, is the missing money the margin the umbrella takes for processing his pay?

So sorry yes I forgot to include the attachment, yes we worked out its umbrella pay so he's being deducted an extra £80 a week for company deductions as well as his £90 a week for his own tax Ni and pensions 😫

OP posts:
lalahotpantsl · 27/01/2023 08:08

This reply has been withdrawn

This message has been withdrawn at the poster's request

lalahotpantsl · 27/01/2023 08:12

This reply has been withdrawn

This message has been withdrawn at the poster's request

Chooba · 27/01/2023 08:15

OP I can't help but I think his name is on the top of the attachments.

Original poster
lalahotpantsl · 27/01/2023 08:26

I've asked mumsnet to remove the post now, thanks for all your help

OP posts:
Beenaboutabit · 27/01/2023 08:26

He’s been paid about £12.95 per hour

the deductions are right for the income

Beenaboutabit · 27/01/2023 08:27

That’s 12.95 all in per hour

page1of4 · 27/01/2023 08:28

Looks to me like they're deducting the employers contribution to his tax ni and pension, which id question as that's supposed to be as it says, the employers contribution!

Greblegable · 27/01/2023 08:30

page1of4 · 27/01/2023 08:28

Looks to me like they're deducting the employers contribution to his tax ni and pension, which id question as that's supposed to be as it says, the employers contribution!

It says employee not employer NIC. So it’s right.

Alarae · 27/01/2023 08:32

page1of4 · 27/01/2023 08:28

Looks to me like they're deducting the employers contribution to his tax ni and pension, which id question as that's supposed to be as it says, the employers contribution!

If he's being paid by an umbrella company he's basically a contractor of that company, not the employer. The contractor (in theory, as the only source of the umbrella company's income) has to pay the company deductions as well as employee deductions.

It's why people should negotiate for higher pay if they are in that circumstance as you lose out quite a bit on the headline rate.

FeinCuroxiVooz · 27/01/2023 08:43

why do you think he is on £15 ph? the pay rate is £12.96 ph including holiday pay and their "other" addition onto a basic pay rate of £9.50ph - paying a topup like this for holiday pay is only supposed to be done for casual zero-hours contracts where the worker is only doing a few hours here and there. if he is generally working 5 days a week then they can't get around the right to holiday like this.

looks like the company are being pretty evil though. can he get a job elsewhere? does he have an offer of £15ph in writing? he might be able to make a claim for backpay due so keep all the payslips.

Original poster
lalahotpantsl · 27/01/2023 08:49

FeinCuroxiVooz · 27/01/2023 08:43

why do you think he is on £15 ph? the pay rate is £12.96 ph including holiday pay and their "other" addition onto a basic pay rate of £9.50ph - paying a topup like this for holiday pay is only supposed to be done for casual zero-hours contracts where the worker is only doing a few hours here and there. if he is generally working 5 days a week then they can't get around the right to holiday like this.

looks like the company are being pretty evil though. can he get a job elsewhere? does he have an offer of £15ph in writing? he might be able to make a claim for backpay due so keep all the payslips.

£15 per hour is what he is being paid, it tells you at the top of the payslip and is what he was told he was getting. Its working out lower due to all the company deductions shown in the top corner.

OP posts:
Original poster
lalahotpantsl · 27/01/2023 08:52

Greblegable · 27/01/2023 08:30

It says employee not employer NIC. So it’s right.

Show quote history

He's paying employers and employees contributions

OP posts:
Xanorra · 27/01/2023 10:38

It’s normal to have employers NI, apprentice levy and an umbrella charge deducted from your payslip when you are paid through an umbrella. Unfortunately the £15ph is misleading if you’re not aware of how it works.
His holiday pay is probably added to each payslip, (rather than paid when he takes a day off)? This is actually the better option.

Here is an example of a salary calculator for umbrella, have a look and adjust for %pension and umbrella cost. He should get ca £415 a week net pay, does it sound right?
https://payslipbuddy.co.uk/umbrella-company-calculator

Original poster
lalahotpantsl · 27/01/2023 14:12

Xanorra · 27/01/2023 10:38

It’s normal to have employers NI, apprentice levy and an umbrella charge deducted from your payslip when you are paid through an umbrella. Unfortunately the £15ph is misleading if you’re not aware of how it works.
His holiday pay is probably added to each payslip, (rather than paid when he takes a day off)? This is actually the better option.

Here is an example of a salary calculator for umbrella, have a look and adjust for %pension and umbrella cost. He should get ca £415 a week net pay, does it sound right?
https://payslipbuddy.co.uk/umbrella-company-calculator

Yea he got £409 ish.

Thanks everyone

OP posts:
Kazzyhoward · 27/01/2023 18:09

FeinCuroxiVooz · 27/01/2023 08:43

why do you think he is on £15 ph? the pay rate is £12.96 ph including holiday pay and their "other" addition onto a basic pay rate of £9.50ph - paying a topup like this for holiday pay is only supposed to be done for casual zero-hours contracts where the worker is only doing a few hours here and there. if he is generally working 5 days a week then they can't get around the right to holiday like this.

looks like the company are being pretty evil though. can he get a job elsewhere? does he have an offer of £15ph in writing? he might be able to make a claim for backpay due so keep all the payslips.

It's normal for contractors. That's what IR35 is all about. When you're freelance/self-employed/contracting, you pay both employee AND employer taxes/NIC etc yourself because you're effectively "self" employed, i.e. you "employ" yourself.