Understanding your payslip

To view an example of your payslip  Example Payslip.pdf


We are very pleased to be able to offer you the option of receiving your payslip by e-mail.
The benefits are multiple

  • Your payslip will never get lost in the post
  • You will receive your payslip at least 2 days earlier than by post
  • You will be able to store a copy of it for your own future reference
  • You will be assisting in reducing our carbon footprint by reducing the amount of paper, toner, envelopes and delivery fuel used, something that we are serious in our commitment to.


To elect to recieve your payslip by e-mail, due to security you will need to print off, sign and send this form to our payroll department  e-mail my payslip form.pdf


Payment Method

All payments will depend on whether a Timesheet arrived before the payroll deadline.

A weekly payment is made on the Friday following the week worked. This is paid directly into your Bank/Building Society Account by BACS. Please note that payments cannot be paid into third party accounts

For those without a Bank Account, a crossed cheque ‘A/C payee only’ will be available for collection at the office in Laystall Street from 9.00am on Friday following the week worked. We have a cashing facility with HSBC Branch in Holborn Circus. Please note that the Bank will require ID for you to cash your cheque i.e. Passport, Driving licence etc

If you have recently set up a Bank Account or changed your Bank Details please complete a copy of our BACS payment form and send it to your consultant. Bank Details.pdf

To check that you have been paid, you should first contact your bank for confirmation that a BACS payment has been made into your account. DO NOT check the balance in your account using an ATM machine as the balances are generally updated overnight.

 

National Insurance (NI number) – Valid for 2010/11 Tax Year

If you do not have an NI number click here

If you earn between:

                            i)     £97.00 and £110.00 per week
                                   No NI deductions are made but for benefit purposes, you are considered to
                                   have made contributions (Lower Earnings Limit)

                            ii)     £110.01 and £770.00 per week
                                   Class 1 contributions are deducted at a rate of 11% from your earnings

                            iii)    £770.01 plus
                                   Any earnings above this are subject to contributions at 1%


 

Tax Codes – Valid for 2011/12 Tax Year

Your Tax code is issued by the Inland Revenue and shows the amount of tax-free earnings you are entitled to in the tax year. Please note this does not mean that you do not earn Tax up to this amount – it is spread over the tax year period.

The current allowance is 747L which means you can earn £7,475 per annum tax free. For weekly paid staff this means that you will not pay tax on the first £144.00 of your salary (£7475/52 weeks)

The letters after the number also have a meaning:

                            i)    L        Means Basic Personal Allowance
                            ii)   BR      Means Basic Rate tax deducted at a rate of 20% with no free
                                            earning allowances
                            iii)  NT      Means no tax is to be deducted (Students)
                            iv)  DO      Means you are liable to the higher rate tax of 40%


Current Tax Rates - – Valid for 2011/12 Tax Year

These are the current Income Tax Rates Rates and Bandwidths

                            Basic Rate           £1 – £35,000                    20% Tax
                            Higher Rate          £35,001 - £150,000           40%  Tax
                            Additional Rate     £15,0001+                        50% Tax


Tax Basis

There are 2 bases on how Tax works, namely ‘Cumulative’ & ‘WK1’.  It is quite common for Temps to see WK1 basis on their payslip below we will try to explain what this means by example.


Cumulative Basis

If you start an assignment at the beginning of the Tax Year (5th April) or you are in an assignment which takes you through 5th April – as it is the beginning of a NEW Tax year all your Income earned and Tax recorded at this point will obviously be zero.

If you ‘theoretically’ stay in this employment for the next year to the end of the Tax year (4th Apr) without any breaks (except normal Holidays), then the Tax code you were given at the beginning of the Tax year would deduct exactly the correct amount of Tax from your earnings.

As we are fully aware of your historical pay and tax figures for the CURRENT Tax year our payroll department can calculate the correct deductions and you are said to be on a ‘Cumulative basis’

If you left your employment during this time your P45 would accurately provide all your Earnings and Tax deducted from the beginning of the Current Tax Year. When this P45 is passed to your next Employer they can input all the information on their payroll system and continue you on the ‘Cumulative Basis’ ensuring you are getting all your free allowances and taxing you correctly. This is why it is imperative for Temps to get their P45’s from their employers.

However when Temping your earnings and total tax deducted is a lot harder to keep a track of as many assignments can last a few days and you, the temp, could be using more than one Agency! In these cases you will certainly being paid on a WK1 basis. You will notice this when you eventually receive your P45 from these agencies. In the box marked WK1 there will be an ‘X’ and the Earning and Tax deducted will only relate to the work with that Agency and not include any historical data.


WK1 Basis

As mentioned above this Basis is used when we do not have a complete historical earnings and tax record for the current tax year. Tax Deductions are therefore calculated as though it is the first week of the tax year. It is a Temporary Tax code also known as ‘Emergency Tax’

If you are on a WK1 basis and you find a long term assignment it is beneficial to try and get onto a cumulative basis. This is because all your earnings and tax deducted would be centralised by the Tax Office, they would pull all your historical data together since the beginning of the Current Tax year and if you have overpaid any tax you would get your Rebate automatically – without having to claim it back at the end of each tax year.

Please note that if you are owed a lot of Tax (generally over £500) the Tax office will amend your Tax code to the end of the Current Tax year which would mean that you get ‘extra free allowance’ i.e. You would be taxed less each week. So you would not receive it as a ‘lump sum’.


What to do

To try and get your Tax coding on a Cumulative basis you need to be patient and contact the Tax Office, the office you need to contact will depend on who you are working for. For the Adept Tax office details click here.


Tips

When you call ensure you have your NI number available, if you do  not have one it is imperative that you get one as it may take MUCH longer to sort out. Take the name of the person you have spoken to and extension and chase them up, being  as polite and friendly as you can, at least once a week until your new tax coding comes through. It may take a few weeks depending on how many Tax offices they have to get your details from – but be patient and persistent.


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