Salary query

All

2 months ago I was seconded into a new position and received just over £1100 extra on my salary. At the same time my Tax Code changed from 543L to 603L but my take home pay has gone down by approx. £50 per month for each of the two months so far.

Can someone explain in layman's terms how this works like this? To me, if my salary goes up and my Tax Code (is that personal allowance?) goes up I should end up with more at the end of each month not less.

thanks

Reply to
harikeo
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Give us some details - what tax & NI were taken off, tax to date, etc. Before and after.

Reply to
Andy Pandy

I'll have to get the 3 payslips from my desk at work tomorrow. Will post back tomorrow afternoon sometime.

Thanks

Reply to
harikeo

Hi there,

Code 543L means you can earn 5,430 a year Tax Free, code 603L means you can earn 6,030 a year tax free, an increase in your annual tax allowance of 600.

The tax code change is in your favor. It means you can earn more this tax year without paying tax. (it was changed because Alistair Darling's U-turn over the 10p tax rate)

I'm not sure why the tax is higher for the previous months but over the year it should work out correctly

If it doesn't you can claim it back. So relax for now and enjoy your salary hike.

I hope the information will be useful for you.

Regards.....

Reply to
Lorens_Alfred

£1100 extra per month or per annum?

If per annum, it means £91 extra each month, or £73 after tax.

The allowance change is £600 extra tax-free per year, which means £10 per month less tax (if you pay 20%).

Taken together you'd think you would have had an extra £83 per month instead of your £50 reduction. You need to ask your employer what happened to the two lots of £133. Or just phone your tax office.

PAYE does work in weird ways but they need to do a lot of explaining as to why a salary rise /and/ a tax reduction is making you worse off.

Reply to
Bartc

In message , harikeo writes

Remember in September everyone got an extra £60 'cos of the fiddling with the tax bands ...

Reply to
LuSiVe

Was the £60 a lump sum or in small chunks over X months? I didn't see anything on Septermber's payslip about the £60 'refund' and for my OP I was looking at August's payslip when I wasn't seconded and October and November's when I was, so any extra in September hasn't been involved here.

I will post details of the pay/tax when I get into the office next week and get the payslipsz. I haven't posted them so far because I was taken back into hospital after a fall soon after surgery on my spine and tax was the last thing on my mind :)

cheers

Reply to
harikeo

It's actually 120 over the year, but 60 in september and 10 each month after until march. It wasn't mentioned anywhere on my payslips either but the tax paid was less.

Reply to
LuSiVe

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