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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have been working for a company for 2 months, my tax code

Resolved Question:

I have been working for a company for 2 months, my tax code is 1000L I get paid £30,000 pa. But so far my net pay has varied both months. I've not done any overtime or anything different so why is this? It has only been a few pounds but it seems strange. I get paid monthly.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Can you give me the figures for gross pay and tax deducted from each of your payslips please. When did you start your current job? If it was after 5 April 2014, did you have any earnings between 5 April 2014 and when you started the current job?
Customer: replied 3 years ago.

gross pay 5416.67


tax paid 1301.71


NI 377.66


Net pay 3737.30


 


gross pay 5416.67


tax paid 2603.83


NI 755.32


Net pay 3737.30 I think the larger figs are YToD, as there is a separate box with the same figs in as month 1.


 


Sorry I put wrong salary in it's £65,000 pa (I'm off sick at the moment, which may explain why its not making any sense!). I have worked for same company for the last 2 years and I was on £30,000 pa plus commission. This changed at the start of the new tax year. I was up to date with tax & NI payments and don't owe anything.

Expert:  TonyTax replied 3 years ago.

Thanks.

I cannot see any difference between the first month and the second month. As long as your tax code doesn't change, any differences will only be due to roundings of allowances as the tax year progresses. The larger figures are the tax year to date figures.


The PAYE system is a cumulative system so when the payroll is run each month, it takes account of what went before and irons out discrepancies, ie roundings, and plays catch up so if the allowances were increased, you would pay less tax and if the allowances were decreased, you would pay more tax.

If you are on £65,000 per annum, your gross pay each month will be £5,416.67 and your tax and NIC deductions will be as you have shown me. There is certainly nothing to worry about. The calculator here will work out your pay, tax and NIC for each month so long as your tax code is the same.

 

I hope this helps but let me know if you have any further questions.

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