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Higher tax band if timesheets not approved on time

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  • WTFH
    replied
    Originally posted by Lance View Post
    it will improve with each subsequent pay packet. As each one comes through it gets closer to year end and the correct number.
    I would ask them why you have the emergency code though. If you've provided a P45 you should be on a normal tax code.
    IF he's provided a P45 and it's his only job, then unless there's a pertinent fact or two missing, emergency tax codes should be temporary.

    Leave a comment:


  • Lance
    replied
    Originally posted by petafin View Post
    Thanks eek. I will keep an eye on it and trust it will eventually be fixed.
    it will improve with each subsequent pay packet. As each one comes through it gets closer to year end and the correct number.
    I would ask them why you have the emergency code though. If you've provided a P45 you should be on a normal tax code.

    Leave a comment:


  • petafin
    replied
    Thanks eek. I will keep an eye on it and trust it will eventually be fixed.
    Last edited by petafin; 29 November 2020, 20:38.

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  • eek
    replied
    Originally posted by petafin View Post
    Thanks all.

    The agency does have the correct tax code (though there is the W1 at the end, for the emergency one).

    They told me I was on the higher band because I received 4 weeks of salary as one payment. It was the first payment I receive as a new contractor so maybe they started the payroll for that first payment that's why they counted this amount as being my weekly one.

    I look forward to seeing it corrected on the next payroll rather than having me to do extra calculation for the self-assessment...

    Thanks.
    It will be fixed in March as it always is when the last payment for the year is done.

    Leave a comment:


  • petafin
    replied
    Thanks all.

    The agency does have the correct tax code (though there is the W1 at the end, for the emergency one).

    They told me I was on the higher band because I received 4 weeks of salary as one payment. It was the first payment I receive as a new contractor so maybe they started the payroll for that first payment that's why they counted this amount as being my weekly one.

    I look forward to seeing it corrected on the next payroll rather than having me to do extra calculation for the self-assessment...

    Thanks.

    Leave a comment:


  • Lance
    replied
    Originally posted by jayn200 View Post
    That's not true.

    They will assume that the weekly pay for rest of the year is actually 4x what it is so you will end up paying higher.

    This will get corrected later on anyway so no biggie.
    Rubbish.
    That’s not how PAYE works. It’s all about total paid at a point in time.

    Leave a comment:


  • eek
    replied
    Originally posted by jayn200 View Post
    That's not true.

    They will assume that the weekly pay for rest of the year is actually 4x what it is so you will end up paying higher.

    This will get corrected later on anyway so no biggie.
    100% wrong - no assumptions will be made, software just takes the input figures and calculates the amount of tax to be deducted.

    Leave a comment:


  • jayn200
    replied
    Originally posted by Lance View Post
    The agency don’t choose your tax band. Not does lumping 4 weeks into 1.
    Your tax is calculated using PAYE. It automatically calculates the tax based on the week in the year, and the total amount paid so far in the year.
    Lumping 4 weeks into 1 will not affect that calculation. Not unless there’s an error.
    That's not true.

    They will assume that the weekly pay for rest of the year is actually 4x what it is so you will end up paying higher.

    This will get corrected later on anyway so no biggie.

    Leave a comment:


  • ladymuck
    replied
    Did you give the agency a P45 and does it have your correct tax code on it? If not, they may be paying you on an emergency tax basis which will compound the issue.

    If all that is correct then then the tax will sort itself out and you'll likely notice that the next payslip has a tax refund / reduced tax on it.

    What you won't get back is any excess NI paid.

    Regarding your other points - this is going to happen every time your line manager forgets to do their job. It's not illegal, it's just life. The agency is complying with the contract and not doing anything wrong.

    It sounds like you'd rather the agency withhold payment, which would probably put them in breach of their contract and perhaps the minimum wage laws as you won't be being paid for the time you've worked (IANAL, just guessing here). Then there's also the extra admin overhead of manually processing payroll for one special person which I guess you're not willing to pay for.

    Leave a comment:


  • Lance
    replied
    The agency don’t choose your tax band. Not does lumping 4 weeks into 1.
    Your tax is calculated using PAYE. It automatically calculates the tax based on the week in the year, and the total amount paid so far in the year.
    Lumping 4 weeks into 1 will not affect that calculation. Not unless there’s an error.

    Leave a comment:

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