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Where Taxpayers and Advisers Meet

Confusing payslip with some added bonus...

jurassicjim
Posts:1
Joined:Fri May 25, 2018 3:47 pm
Confusing payslip with some added bonus...

Postby jurassicjim » Fri May 25, 2018 4:01 pm

Hi, I've got a confusing situation and looking for a second opinion, as my employer has tried to explain, but something doesn't feel quite right.

My basic pay is £3,250, which works out as £2,270.80 after deductions.

Deductions are...

Tax Deducted 452.20
Employee NI Contribution 305.76
Student Loan Deduction 155.00
Pension (not under NPA) 66.24

This month (May payslip) I have received £1,770 in vouchers as a bonus.

My basic pay is the same £3,250.

Total deductions have increased to...


Tax Deducted 915.00
Employee NI Contribution 402.46
Student Loan Deduction 314.00
Pension (not under NPA) 65.93

Which seems fair enough.

Then my net pay is £3,322.61.

However, in my actual bank account I have received £1,552.61. Which seems to be the net pay minus the value of the vouchers.

Here is the response from my employers.

"Hi

The payslip net reflects the extra payment (Amazon voucher). So after all the deductions.

As Dave mentioned this is the way you agreed to do it to pay the tax this way rather than a P11D self assessment later in the year.

Then the 1770.00 has been deducted off the net (as you have had that extra payment as a voucher)

After your query about what went into your bank account I have double checked the figure and I think you should have been paid £1452.61 not £1552.61 so I will deduct the £100.00 overpayment from next months salary thanks for pointing that out!

Thanks"

Like I say, this might all be absolutely correct, but I'd just like to understand the process of how I have received an extra £1,770 in vouchers, but ended up with £718.19 less in pay. Just seems disproportionately high amount to be sacrificing.

Thanks for any help and let me know if any more information is needed.

D&C
Posts:61
Joined:Thu Dec 22, 2016 10:04 pm

Re: Confusing payslip with some added bonus...

Postby D&C » Sat May 26, 2018 4:11 pm

First thing is that your annual income after the first payday of the year is £39,000 (£3,250 x 12) so you are only liable to pay 20% tax (based on the standard tax code of 1185L)

But after your second pay day your annual income is £49,620 (£3,250 + £3,250 + £1,770 / 2 x 12) so you are paying some 40% tax.

If you paid just the basic pay again in month 3 then your annual income will drop to £46,080 and (assuming you don't live in Scotland) you will not be liable to pay 40% tax so instead of paying £452.20 tax like in month 1 you will only pay £343.80, effectively getting a refund of the 40% tax you paid in month 2.

Each month you receive just your basic pay then your annualised pay will reduce and if everything remains the same it will be £40,770 by the end of the tax year (£3,250 x 12 + £1,770).


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