Tax code confusion.....

[djones123]

Hi,

I started a new job on 6 Feb and i have been paid £2164.81 with tax code "747L M1" . I get paid on 30th of every month.

My salary is 40k plus £1800 housing allowances per year.

payslip details:

Payment Units Rate Amount
Salary 0.83 3333.33 2769.00
Housing Allowance 0.83 150.00 124.61

Tax: 454.00
NI : 274.80

Does it look okay? I think Units should be 0.85 or 0.86?

[Eric Mc]

What was your salary level in your previous job?

[djones123]

previous salary was 25k.

[anonymous-user]

They've pro-rated your salary for feb, Starting 6th means employed for 24 out of 29 days, 29/24 = 0.8275 so it appears they've rounded it up to 0.83 in your favour.

[Eric Mc]

Does he get paid for weekends?

[anonymous-user]

Every permanent contract I've had in the last 20 years as has been on a every day of the year basis, with pro-rate pay calculated per calender day, although normally paid 1/12 annual salary per month!!. Working hours defined as X per week Monday to Friday. Holiday pay\overtime rates calculated at something like 1/261 of annual salary. I'm not sure why they do it that way, maybe it is for exclusivity reasons as they've also stated I couldn't work for anybody else during the employment without their permission. As they are effectively paying me each day even when not working it makes the term appear more 'fair' and therefore enforceable?

Only other reason I can think of, is self certificated sickness, if you are employed on an everyday basis then you can only self cert for a week, but if it's Monday to Friday you can do 1 week and 2 days?

[djones123]

No I get paid every month.

I thought it would be 18/21 = 0.857

[anonymous-user]

What does it say in your contract, it should have a section covering, pro-rated pay.

[djones123]

Bluequay said:

What does it say in your contract, it should have a section covering, pro-rated pay.

I doesn't say anything apart from gross annual salary.

When i asked the HR manager she calculated it to 18/21 and she said its just a 2% difference which is about £50 if i am not wrong.

Is it down to HRM Revenue to calculate my salary or it is upto my HR department to calculate the right units?

[KelWedge]

Its down to the company to sort out the amount to pay you, should be in your contract if not ask, but being a new employee why push the point as it will be right next month, and you have got a new job paying more. Its a pain that they have worked it in an odd way. I have to say I have had this raised in the past and any new starter now always gets the bigger figure! but I am nice like that.