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Original poster

Need to check net wages as get different figures then employer?

10 replies

jaabaar · 31/03/2011 23:29

Hi,

Before returning to maternity leave I asked my boss what would my new net wages be as I changed to part time. He gave me figures by email.
Now when I got paid it is 25 pounds short (I know it's little but to me it is a lot).

I checked with online calculator (entering my exact gross wages) and a different figure comes up (this time a difference of approx 40 pounds).

Could someone help me by email? please?

Thank you. Would be every so grateful. Dont like when companies take you for a fool, which happend with my company quite often....

OP posts:
madwomanintheattic · 31/03/2011 23:31

have they got your correct tax code?

sometimes with p/t hours you end up claiming the additional tax back at the end of the year from the inland revenue. depends on the employer etc.

Original poster
jaabaar · 31/03/2011 23:34

oh dear, I really have absolutely no idea about this things!
Why does it depend on the employer? And why only sometimes?
What is the reason to claim back, isnt it deducted correctly first time round?

Will check out tax code. Thanks for giving hints in which direction to go (albeit I am half blind!!)

OP posts:
madwomanintheattic · 31/03/2011 23:58

lor, i'm no tax expert. i just know that if you change your terms and conditions (like going from ft to pt or whatever, notwithstanding mat leave in the middle) sometimes you end up on the wrong tax code, so they take too much. (it's usually that way lol, i've never paid too little... Hmm)

worth checking anyway. if you notice it in time, your employer can usually rectify, but sometimes it doesn't come out in the wash until the end of the year. have you got a payroll dept you can check with?

Original poster
jaabaar · 01/04/2011 00:03

No payroll department. And they never had a maternity leave situation and never had to deal wiht Childcarevouchers (which I set up) etc.
How can I check the tax code? I can ask for it but how do I know it is the correct one?

U sure are an expert compared to me.....!

OP posts:
Grevling · 01/04/2011 00:18

Tax code will be on payroll slip should be 647L for most people. Bear in mind that if you've earnt already this year over the personal tax allowance then that is more than likley why your pay is "wrong" as were still in the tax year and its taking into account any pay earlier in the year.

madwomanintheattic · 01/04/2011 04:06

that's what i was trying to say, grev Grin. it'll be taxed earnings taking into account your ft earnings if you worked ft in this tax year... so next tax year you should just get taxed taking into account your pt earnings. (i assume they are regular hours - if not, you might get charged at basic rate throughout and have to claim excess etc back at the end of the year...)

prh47bridge · 01/04/2011 09:54

You should have received a letter from HMRC last year telling you your tax code for the current tax year. Your employer will also have your tax code. If they are using the wrong one HMRC will sort it out. Your tax code doesn't have to appear on your payslip but most employers include it.

Tax and NI work differently. For tax, every time you are paid they calculate how much tax you should have paid for the year to date, subtract the amount you have paid previously and deduct whatever is left (unless you are on a month 1/week 1 code in which case each pay period is considered in isolation). The way the tax tables work means your pay can go up and down by a few pence each month even though your pay remains the same.

For NI each pay period is looked at in isolation. NI works on the assumption that your pay will stay broadly the same over the year. So you can calculate that without knowing what has happened in the rest of the year.

Your earnings this year are the amount you earned in full time employment since April 6th 2010 plus your SMP and anything else your employer paid you whilst you were on maternity leave plus whatever you have earned from working part time. If that figure is correct it is likely that the tax is correct.

The company doesn't benefit from calculating your tax incorrectly as they have to pay the money they deduct to HMRC. To fiddle you they would have to produce two sets of P60s at the end of the year - one for you, another for HMRC. As soon as people started sending in their tax returns it would be obvious to HMRC that there were two sets of figures and they would launch an investigation into your employer. So I think it is unlikely that your employer is actually trying to fiddle you somehow.

If you want to PM me all of the figures on your payslip I will take a look and let you know if I see any problems.

Original poster
jaabaar · 03/04/2011 22:28

Madwoman and prh47bridge:
THank you so much for taking your time to answer me in such detail. Ireally do appreciate it. I just never get my head around tax issues! I even assumed that the taxman should know all my details and I dont need to inform them additoinally of my benefits! (got one of those famous underpaid tax letters) but that 's another issue.

prh47bridge: Please if it would not be too much bother for you, could I send you my figures and my taxcode (which I still have to find out)? What is and how do i PM?

thanks again!

OP posts:
Original poster
jaabaar · 03/04/2011 23:28

prh47bridge: Have found out how to PM. Would it be ok if I send figures and Taxcode once I have it??? thanks..... appreciate a lot.

OP posts:
prh47bridge · 04/04/2011 09:25

That will be fine.

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