The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>United Kingdom Taxes

Weekly paid Income tax question?


I am paid weekly through an agency (UK), and my tax is deducted on PAYE. One week, I didn't get my timesheet through in time for payroll, so instead I will be paid for that week's work the following week.

So, when I do get paid, it'll be two weeks wages rolled into one.

People at work that I've spoken to about this, all tell me that I won't get taxed more when paid for 2 weeks work as one weeks pay, but after doing my sums, it appears I will.

Who is right?

The answer from "Whatever" is correct PROVIDED THAT your tax code number is NOT on a week 1 basis (you should be able to check your tax code number from your last payslip).
If your tax code is 522 for example, then "Whatever" is correct.
If your tax code is 522 Week 1, you will lose more tax from your pay (because a week 1 basis does NOT give you the benefit of the tax free allowances you did not use in the week you didn't get paid).
But if you are on a week one basis you can get the tax back.............either if your code number is changed so that you are not on a week 1 basis.........or after 5 April next by completing a tax return.
"Whatever" is almost right about the extra National Insurance but that very much depends on your level of earnings.
When you get paid you will know who gave the correct answer !!!!

You are, you will be taxed on the full earnings of that week even thought it is for two weeks work. However, it shouldn't really make much difference because it will be round about the same as adding up the tax you would have been paid over two weeks had you been paid on time. You will be no better or worse off!

You may well end up paying more national insurance this way.

Income tax is worked out over the year so it corrects itself for these sorts of timing issues, wheras National Insurance works on a weekly or monthly basis. Because you weren't paid last week your threshold (the amount of cash you can earn before paying NI) was not used. You don't get this back.

This will probably cost you about 拢10 in total. (The threshold is around 拢 90 a week, and the rate is 11%).

Brianfro omitted to mention that it will all come out in the wash, and you will get a tax rebate at the end of the year if you've overpaid. And IF you complete a tax return at the year end.

PAYE (Schedule E tax) is based on a receipts basis, you are taxed on when you are paid the money, not for the period in which it is earned. Therefore if you had no pay in one week, that week's allowances and lower rate band will also be carried forward, and you will have double allowances in the week you are paid.

Tags
  Atlanta   Other - Business & Finance   Other Taxes   United States Taxes   United Kingdom Taxes   Spain Taxes   Singapore Taxes   Mexico Taxes   Ireland Taxes   India Taxes   Germany Taxes
Related information
  • When you recieve your payslip do you get paid then or the date which is in your payslip?

    The date stated on the slip as being the pay date, the slip is just to inform you of your salary and deductions.

    ...
  • Some buddy please breack this code.?

    this guy broke the code ...

  • My income to this point is about 74,000 gross, can I avoid the next tax bracket, or can I claim head of house?

    Oh wow, you make a lot of money!!! can you support me!!?

    ...
  • Tax on international bank account?

    If you are resident in the UK, you pay tax on your worldwide income. The income from Ebay arises in the UK in any case if you are based here and sending out goods from her - it doesnt matter where ...

  • UK citizens: how much are you taxed?

    Yes, the UK has tax brackets. 10%, 22%, 40%, and different rates for capital gains. Check out Her Majesty's tax assessor's website...

    ...
  • Work 40hrs reg time & 10hrs OT (time & 1/2) earned 1402.50 one week whats his hourly wage?

    1402.50/55=25.50

    ...
  • Uk tax rates?

    The actual amount for 2007/08 is 拢34600, after personal allowances.

    ...
  • Where does HM Revenue get there information from ?

    They also get info from Electoral registers, the internet, banks and building societies, insurance companies, ships brokers, Valuation rolls, etc, etc

    ...
  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster