Quick question on pay

DJMK4

DJMK4

DJMK4

Soldato
Joined
1 Dec 2004
Posts
23,879
Location
S.Wales
Hi all,

Just a very quick question, I submitted my overtime for the month which was paid to me recently with via normal methods, usually its a mixture of overtime (@1.5, @2.0) and we get retainer rates (say £150 per day, or higher if bank holiday)

Anyway, long story short, I submitted my overtime for this month which included 19 hours overtime, they paid me for this, however they missed paying the retainer rate of 1 x £150.

They have now resolved this and have paid this separately, this will still be subjected to tax etc, but nothing else? I have a small student loan amount I am repaying, and a pension I am paying, would any of that £150 gone on to this?

Out of the £150 the rate is, I was expecting about £120-£125, but £48 taken out of that seems a bit high?
 
Surely check with your HR/wages department as they will have your correct tax coding, pension contribution levels, NI levels, student loan details etc. All of this is needed to be correct when looking at your monthly deductions.

I doubt anyone on here will have an answer for you
 
Cool ok just checking that nothing else would come out of it other than the usual tax and NI for additional payments outside of my usual monthly pay.
 
If you're on the normal tax rate (i.e. not earning 40-odd thousand a year), then taking £48 sounds right.

£150 - 20% income tax - 12% National Insurance = final payment.

£150 - £30 - £18 = £102.

Edit: lol, beaten to it a couple of times.
 
I am on the normal bracket, cool thanks gives me an insight of how the tax and NI is broken up, thanks :)
 
MooMoo444 said:
Don't you get x tax free up to a point though - isn't it 10k or something? (Of your yearly total)
Click to expand...

Yeah I get that, but then my payslip I am not sure how that works out, they have a TAX, NI, Pensions etc paid this year, so for example tax this year is showing as £1463, NI £XXX, Pension XXX

Then underneath all that its got

Total taxable pay to date: 10,518.53


Total taxable pay to date, why is this much higher than what it states in "paid this year" column?

Apologies I am not great when it comes to tax, etc.
 
You don't get anything tax free on "extra" payments made outside of the 12 months salary payements, basically your monthly basic salary is worked out based on the fact you will get the same salary every month, so the tax free allowance is divided by 12 months.... so for example if you earn £24K per year and the tax free earnings is £10K...

The first 10K of tax free earnings gets divided by 12 months, so your tax payment is equally spread over the year. So each month you earn £2000 before deductions... but the first £10K which is tax free is divided by 12 months = £833.33 salary each month is tax free.. so anything you earn over £833.33 per month is then taxed each month at 20%.

This is why any extra payments are fully taxed at 20%... and of course NI is the same.

Of course if your salary goes up, or you leave employment mid way through the year and you only earn £12k for the year, at the end of the tax year you will be due a refund as you were taxed based on earning 24K for the year.
 
Last edited:
Because your tax free rate is pro rata, so that is how much you have earned that is subject to taxation, and your pay to date, is exactly that.

As for the tax free amount against this extra payment, that has already been used up with your main pay this month, so doesn't count here.
 
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