Logged on to bank to see difference of 1% pay rise on take home…and see that my take home has dropped by £110

Even if I have limped into the higher bracket, surely the 40% is only on the difference?

Any other reason why I may have had a pay cut (public sector)

New tax year, has your tax code changed?

My circs haven’t changed, so I’m not sure. No payslip until I get to the office….

The 40% will only be on the difference so you should not be worse off. Have you had your tax code changed to account for an underpayment? If this is a mistake on HMRC’s part then you are about to go down the rabbit hole and your life will never be the same again. Not in a good way either.

Anything else changed like increase in your pension contributions, started a cycle to work scheme or anything else that involves salary sacrifice?

Upped your pension contributions? Splashed a load on the cycle to work scheme? Being April your new tax code will have been applied and perhaps you owed a big chunk of tax for a benefit in kind you received last year?

Edit: beaten to it 🙁

National insurance contributions have gone up > 1%

Yep, sounds like the pension and NI change could be the reason…

Contracted out pension ends

+1 for contracted out of s2p ending.

I’m about to find out how much worse off I am each month

NI contributions went up across the whole of the public sector, you should have had loads of internal comms on it

Yep, it’s the (hardly noticed) rise in NI that overwhelmingly affects public sector workers and affects lower paid workers the most. As the OP has noticed, it will wipe out pretty much all of the public sectors (whopping 1%) pay rises.

Hmm, mine’s gone down as well, though I’m not public sector and no change in NI contributions.

Looks like HMRC have applied a new tax code (from 830 something to 630 something), signifying a reduced personal allowance.

I wonder why that is? AFAIK nothing has changed at my end… ❓

Public sector here.
Pay up + NI up + Pension up = takehome down. About £60 p/m for me.

NI contributions up, same here, wiped out the last rounds of below inflation pay rises. Good times

NI also up by £20 a month.

Also, if you’re a company director NI contributions are skewed towards the start of the financial year if you collect a salary.

My Wife’s went up! Hooray! 1% pay rise and a 7% increment for service and experience, I think she got to keep about half of it.

Do you lot not get notifications of changes to tax codes? I could practically paper my hallway with the frequent updated tax codes the IR send me!

Classic public sector moaning over here. £600 pa pay increase through changing jobs via promotion has seen my take home go down slightly.

Very pleased about that. 🙄

This is just what I don[t want to be reading, it’s pay day tomorrow so I’m sure I’ll be another one getting a pay drop 🙁

it will wipe out pretty much all of the public sectors (whopping 1%) pay rises.

I’ve heard about this 90s phenomenon called ‘pay rises’, do tell me more…

National Insurance has gone up. George announced it 3 years ago and then decided not to remind anyone in his latest budget that it would take effect from 1/4/16.

I wondered why my wage looked a bit odd this month. I’ve just had a pay rise and thought it hadn’t been applied as my wage looked about the same. was going to up my pension contributions as well………..

George announced it 3 years ago and then decided not to remind anyone in his latest budget that it would take effect from 1/4/16.

Just remember, we’re all in this together, so to compensate he did kindly reduce taxation on dividends, as he receives £45k a year from his family business, so he wouldn’t be any worse off.

You do have a family trust fund don’t you?

I’ve heard about this 90s phenomenon called ‘pay rises’, do tell me more…

I think the public sector get them just for changing jobs.

The forumites have beaten me to it, some excellent replies.

As most of you are aware, the 0% threshold has increased from £10,600 in 2015-16 to £11,000 for 2016-17 and your tax code will be adjusted up forty points accordingly (for example 1060L becomes 1100L). HMRC don’t normally bother sending out coding notices for an incremental change, so your employer should uplift your tax codes accordingly.

Just remember, we’re all in this together, so to compensate he did kindly reduce taxation on dividends, as he receives £45k a year from his family business, so he wouldn’t be any worse off.

Not sure where you got that from?

http://www.rossmartin.co.uk/directors/tax-efficient-remuneration/1591-summer-budget-2015-dividend-tax

These changes will affect anyone in receipt of dividends: most taxpayers will be paying tax at an extra 7.5% p.a. Although the first £5,000 of any dividend is tax free, in 2016/17:

Upper rate taxpayers will pay tax at 38.1% instead of an effective rate of 30.55% in 2015/16
Higher rate taxpayers will pay tax at 32.5% instead of an effective rate of 25% in 2015/16
Basic rate taxpayers will pay tax at 7.5% instead of 0% in 2015/16

Not sure where you got that from?

Sorry, capital gains….

theotherjonv – Member

Do you lot not get notifications of changes to tax codes? I could practically paper my hallway with the frequent updated tax codes the IR send me!

I do, but not the most recent one.

PJM1974 – Member

The forumites have beaten me to it, some excellent replies.

As most of you are aware, the 0% threshold has increased from £10,600 in 2015-16 to £11,000 for 2016-17 and your tax code will be adjusted up forty points accordingly (for example 1060L becomes 1100L). HMRC don’t normally bother sending out coding notices for an incremental change, so your employer should uplift your tax codes accordingly.

Not sure why mine appears to have gone down substantially then! 😐

I’ll be spending today’s lunch hour on the phone…

PJM1974 – Member
The forumites have beaten me to it, some excellent replies.

As most of you are aware, the 0% threshold has increased from £10,600 in 2015-16 to £11,000 for 2016-17 and your tax code will be adjusted up forty points accordingly (for example 1060L becomes 1100L). HMRC don’t normally bother sending out coding notices for an incremental change, so your employer should uplift your tax codes accordingly.
Not sure why mine appears to have gone down substantially then!

I’ll be spending today’s lunch hour on the phone..

If you’re in the public sector it’s almost certainly due to the changes in the pension calculations as posted earlier in the thread. Not the change in NI as postulated.

I

Not sure why mine appears to have gone down substantially then!

Bugger.

HMRC should have sent you a notification to explain why your tax code has changed.

I have had a couple of queries from staff asking me why their tax has increased in April when their tax code should be giving them a larger free pay allowance. In all cases, this was due to them joining the organisation late in the previous tax year after a lengthy period out of employment. They’d simply accrued several months’ worth of free pay allowance.

PJM, it will be a double hit for some, the pension contribution will go up as well, not as simple as the NI change alone.

If you’re in the public sector it’s almost certainly due to the changes in the pension calculations as posted earlier in the thread. Not the change in NI as postulated.

You’re halfway there – “Contracted Out” pension schemes no longer attract a reduced National Insurance rate, so regardless of whether you’re contracted in or out, you’ll be deducted the same amount of NI.

I found some old pay slips the other week, from 10 years ago…..I’m earning less now, despite taking on more roles with more responsibilities and skills, that all have to be kept up to speed with CPD.
Oh, and because I wasnt 45 by 1/4/2012, it will also cost me around 60k ……boom, how do like the taste of those apples.
I only want what they told me I would get…..I’m not asking for anything.

Because of my age, I will be working longer, paying more in, and receiving a damn sight less than several of my colleagues…..despite having more years in the job. But that’s fair.

Anyway….I’m going out on my bike now :0)

fire service?

Sounds like it bruneep, I’m in the same boat.

Over 100k the personal allowance (amount you get that is tax free) goes down.

Your personal allowance

Over 100k the personal allowance (amount you get that is tax free) goes down.

Not particularly relevant to the public sector minions contributing to this thread, I suspect. 😆

Everyone in my public sector office was going through their pay cheques today and moaning a lot!