Payroll doesn't open til 9…but should my pay go down?

Viewing 39 posts - 1 through 39 (of 39 total)
  • Payroll doesn't open til 9…but should my pay go down?
  • Premier Icon sc-xc
    Subscriber

    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)

    Premier Icon theotherjonv
    Subscriber

    New tax year, has your tax code changed?

    Premier Icon sc-xc
    Subscriber

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

    Coyote
    Member

    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.

    Premier Icon FuzzyWuzzy
    Subscriber

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

    Premier Icon Rubber_Buccaneer
    Subscriber

    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 🙁

    FunkyDunc
    Member

    National insurance contributions have gone up > 1%

    Premier Icon OwenP
    Subscriber

    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

    withersea
    Member

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

    Premier Icon bails
    Subscriber

    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.

    Jakester
    Member

    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… ❓

    mrlugz
    Member

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

    Premier Icon pictonroad
    Subscriber

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

    cchris2lou
    Member

    NI also up by £20 a month.

    Premier Icon wwaswas
    Subscriber

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

    P-Jay
    Member

    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.

    Premier Icon theotherjonv
    Subscriber

    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!

    Premier Icon pictonroad
    Subscriber

    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. 🙄

    Premier Icon notmyrealname
    Subscriber

    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 🙁

    footflaps
    Member

    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…

    Premier Icon chrismac
    Subscriber

    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.

    ads678
    Member

    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………..

    footflaps
    Member

    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?

    Premier Icon Drac
    Subscriber

    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.

    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.

    Premier Icon jimdubleyou
    Subscriber

    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?

    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

    footflaps
    Member

    Not sure where you got that from?

    Sorry, capital gains….

    Jakester
    Member

    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…

    Premier Icon pictonroad
    Subscriber

    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

    PJM1974
    Member

    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.

    Premier Icon pictonroad
    Subscriber

    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.

    PJM1974
    Member

    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.

    Stedlocks
    Member

    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)

    Premier Icon bruneep
    Subscriber

    wrote:

    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.

    scuttler
    Member

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

    Your personal allowance

    Premier Icon v8ninety
    Subscriber

    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. 😆

    Premier Icon bigjim
    Subscriber

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

Viewing 39 posts - 1 through 39 (of 39 total)

The topic ‘Payroll doesn't open til 9…but should my pay go down?’ is closed to new replies.