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tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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When my personal tax allowance increases should my gross salary

Customer Question

When my personal tax allowance increases should my gross salary reduce so my net pay stays the same or should I see the increase in my net pay
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, thank you for your question. My name is XXXXX XXXXX I can assist you with your question.

tdlawyer :

No, your gross salary will stay the same, so you will see an increase in your net pay.

Customer: The last 3 times my tax code has changed my gross salary has reduced
tdlawyer :

If you get a lower tax code, then it would, but not if you get a higher tax code.

Customer: is this legal
tdlawyer :

Sorry - I was referring to net pay. Basically, you're saying that your employer is pocketing the benefit of tax allowance increases.

tdlawyer :

And if that is the case, as it sounds like, not it's not legal.

tdlawyer :

This would be a breach of your employment contract; a fundamental breach actually.

Customer: 810 to 944 to 1000L in two years but net pay the same
tdlawyer :

Yes, that's wrong.

tdlawyer :

You could demand the backpay be paid by your employer.

tdlawyer :

And if he refuses, you could continue to be employed there and sue him in the county court for the money he has been pocketing at your expense.

Customer: Gross salary has been reduced by over 100 pounds a month to keep my net the same
tdlawyer :

Then that's wrong. That's very bad actually.

tdlawyer :

When did it change, this April?

tdlawyer :

Was your first changed pay at sometime in April or sometime in May?

Customer: I've just remortgaged my house and had to submit payslips etc then noticed that my tax code had changed but take home hadn't whereas my gross pre tax income had reduced , as it had on the two previous tax code changes
tdlawyer :

Then I think this is something you might want to take up with your employer!!

Customer: Oh yes I will , just wanted to be sure I was barking up the right tree
tdlawyer :

:) I think you are, yes!

tdlawyer :

Can I ask whether you're happy with the service this evening?

Customer: Yes thankyou
tdlawyer :

Great - is there anything else you would like me to answer for you?

Customer: Can I have a job if he makes me redundant or sacks me
tdlawyer :

:) If he does make you redundant or sacks you, then you've been there for two years or more, in which case, you can claim unfair dismissal against him.

Customer: Been there 10 years
tdlawyer :

Then I reckon you'd have a good claim for unfair dismissal if he did sack you. I think it's disgusting that he should try to manipulate the tax allowance increase like this in his favour (if, of course, he has).

Customer: not had a pay rise in 4 years just tax code changes
tdlawyer :

Well, unless your contract says so, you're not automatically entitled to a pay rise. If it's just you though, that's not receiving a rise, whereas others are, then you need to ask why, and you might have a claim there.

Customer: I have all my payslips which show a reduction in gross pay when the code changes. I'm the only employee and don't have a contract
tdlawyer :

Are you the only one without a pay rise?

Customer: According to my employer turnover and profit are down but his nest is still being feathered which I totally understand when you run your own business , I just feel I'm being treated unfairly
tdlawyer :

Yes, do you know why that might be the case?

Customer: No idea nothings changed I ten years re work rate etc
tdlawyer :

Strange ... Okay. So you know you can approach your employer about this now and that's something you might want to consider doing.

tdlawyer :

It might be time to look for another role though!

Customer: I'm doin both , just wanted to be clear on the tax code thing before I broach the subject and upset the apple cart
Customer: Thankyou for your help
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