New tax codes - £60 rebate.

On the face of it that does not make sense.

Suggest you ask your employer to check the tax deduction.

I'm £60 lower this month with nothing on my payslip about a £60 rebate :(

For most people...

PAYE tax works on a year to date basis. Have you not been working for the full tax year (ie since April), or does your pay fluctuate a lot?

This may be relevant. If they are continuing with the same trade then they ought to be operating the same PAYE scheme. But even some payroll operators get that wrong. To check this:

a. did you get a P45? b. does your latest payslip show pay and tax to date?

Have the new owners changed the pay period?

That does indeed seem odd but it'd help if you felt able to share actual figures from your payslip for pay and tax, and for total and pay and tax to date.

Post the Gross Pay, Tax and NIC here and I am sure that many would have a look for you. The payslip should show the Gross Pay to date and tax to date figures and you will need to post them too.

Over the whole year, you will get back your marginal tax rate times £60

2. I can't remember if the basic rate is still 22%, but assuming it is, and

it is your highest rate both before and after the change, you will get back £132 over the year.

This month you will only get back the proportion for the year so far, which, I think, is something between about 44 and 55 pounds.

However, if you have had major tax position changes recently, and possibly if paying this much excess in one go would cause hardship to the employer, you might be on a month one tax basis, in which case you should only get back £11 each month, with the underpayment being corrected by next year's tax code.

You will only get exactly £60 back over the year if your marginal rate, both before and after, is 10%. However, wasn't the whole point that there was no longer a 10% band.

I wonder if you are being paid on a different day. If you are being paid earlier, that might well explain the anomalies in the figures. I'm

not 100% sure how monthly cumulative basis is calculated, but if the allowance is only stepped each month, you might have been in the same month, and therefore not had any allowance. If that's the case, one can

make an estimate of your salary!

August 15

Total Payments 1195.25

IT 15540 NI 85.39

TGP 6031.38 IT 787.80

not got slip to hand for 30 august (change over ) but P45 gives

Total Pay 6586.48 IT 759.60

Sep 20 (pay period seems to have changed)

Total Payments 892.50

IT 178.60 NI 52.08

TGP 7478.98 IT 938.20

There seems to have been a tax refund of about £28 on 30 August ( Ithought it was due after 7/9?) but the IT seems to have leaped up this month.

I have just tried the HMRC PAYE calculator on the August and September figures and it gives the answer as above - but I don't understand why. Does the fact that it is only for 3 weeks make a difference?

Right, so you must have been paid 4-weekly, not monthly. You get paid 13 times a year, not 12.

Total IT = INT (TGP - 5439*(5/13) ) * 0.2

Don't understand that... what's the final tax code on the P45?

If it's 603L it almost makes sense if they paid it in advance as the 6th (of 13) pay periods.

Looks right.

Total IT = INT (TGP - 6039*(6/13) ) * 0.2

It looks like as far as tax goes, your 30 Aug and 20 Sept pay were both in the same 4-week period. That's why you paid so much this month. It'll be less next month.

I think you have had a reduction in your tax - but in the last payment from your old employer.

I think what happended was this:

you were paid *in September* for the period up until the end of August

pay 555.1 tax -28.20

You got this refund because, in effect:

a. the whole of your personal allowance for September was set given against that small amount of pay. So you got back some of the tax already paid for April-August; and b. you got the benefit of the increased code - so you got back even more of the tax already paid for April-August

Then you were paid on 20 Sep. This was your *second* payment in that pay period. (The figures suggest to me you are paid every 4 weeks.) So when your new employer worked out the tax to be deducted you had in effect already had the benefit of your persoanl allowaance for September. So all the pay fell into the basic rate band: 178.60 is 20% of 892.50 (within the roundings).

Another way is to look at the total of your final pay from the old employer and first from your new:

pay 1,447.60 tax 150.40

But I am an out-of-date old f**t and could well be wrong. If so I am sure a thrusting young blood will be along shortly to correct me.

Oh and the NI works differently. I sued to understand it once upon a time but I value my sanity too much to go there again;)

I think that makes sense. However if they had paid the whole 4 weeks up to 27th September the HMRC PAYE calculator says that the IT would have been £145. I'm sure it wil all work out in the Tax Return.