New work contract is delayed, I'm getting back dated pay but will I be taxed more?

Schizophonic · 23 Aug 2022 at 08:35

Long story short, my work contract hasn't fully been updated meaning I'm still on my old salary contract. I know management and HR have tried to resolve this issue as my current line manager is away on family emergencies.

I want to know if I'm going to be caught out when it comes to the taxes as when September pay day comes and hopefully everything is sorted. I'll be back dated what I'm owed correctly but will I end up paying more tax because of this?

Snookums · 23 Aug 2022 at 08:40

Tax is over a 12 month period so it will balance out either way. NI is not however so you will pay slight more NI I believe

Schizophonic · 23 Aug 2022 at 08:41

thanks, in regards to the NI, will I need to do anything or things will again level itself out?

tom_e · 23 Aug 2022 at 09:25

You'll pay more student loan as well if you've got one. Which won't balance back out.

Schizophonic · 23 Aug 2022 at 09:30

Lucky not to have one, back then university fees were about 1k.

Thanks to those who have responded quickly.

Macky · 23 Aug 2022 at 09:45

Jumping on this thread - I'm part of a union who have rejected the latest inflationary pay increase offered by my company. When they eventually reach an agreement this will be backpaid I believe in a lump sum. Sounds like as a minimum I'll be paying more student loan. NI as well?

Mercenary Keyboard Warrior · 23 Aug 2022 at 16:39

NI could be beneficial since its a weekly/monthly based calc and not annual.
With NI you need to know where you are in the band, if your in the middle and paying full NI on everything you earn then if you had a large backpayment it could potentially get into the reduced rate area and hence you pay less NI in one month than if that was paid spread out over a number of months.

Student fees depends on scheme but likely to be neutral as well, just like tax.