PAYE Question

S

suimhneach

Registered User
Messages
78
This is probably a stupid question but its one i dont have an answer too. I get paid fortnightly, get same exact amount gross every fortnight, but my paye goes from around 200 every fortnight to around 400, which leave me with a very small nett pay sometimes. Is there a reason for this i dont know much about these things im afraid but am goign to start learning.
 
that doesn't sound right at all. The tax credit system and standard cut off points work to evenly tax the same income over the year (though the prsi elements can vary if you hit the ceiling).

It sounds as if your payroll aren't doing it right.
 
i was thinking that it might be something like that but i needed to hear someone else say it, like i said i have no idea when it comes to this stuff. i thought the same that it would be roughly the same amount all the time.
 
Its not right at all, your payroll should just divide your gross annual by 26 weeks, and also divide the cut off and the credits by 26. It sounds like they are only using your tax credits/cut off every second week.

To work out your net,

the new 1% levy which comes off the top gross wages.

then

gross wages multiply by lower tax rate up to the standard cut off
multiple rest of wages (above the cut off) by the higher tax rate.
Add two tax amounts together.

Subtract from this your credit amount.

This gives your net wages.
 
i need help, ok get paid 1387 once a fortnight my paye this payslip was 350.29 the prsi is 73.07 and the income levy 13.87. Pay slip befopre christmas same basic, then paye 139.90 and Prsi 73.07. what i dont understand is why my Paye keeps jumping up and Up
 
Those are extremely weird cases. My net wage tends to differ by a cent from week to week, but that's about it.
 
suimhneah, to properly advise, we'd have to see what your cumulative salary for the year was (on each of the payslips) and also what tax credits and standard rate cut off point you have.
 
If you get paid every 2 weeks there will be 2 months in the year that you get paid 3 times in the month. Maybe this has something to do with it.
 
ok total on the one last week was the 1387.87 casue was first one of the year i guess the one before christmas 38608.
 
and your tax credits and cumulative tax paid?

I suspect Niallers has hit the nail on the head. You may have used up 51 weeks tax credits before your last payment in December and then had two weeks' pay but only one weeks worth of tax credits/standard rate band.
 
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