#SalaryMystery #NewJobIncome #PayslipPuzzle
Hey everyone! 👋 So I recently made the switch to a new job after being made redundant, and I’ve noticed something interesting… My ‘take home’ income is actually more at my new job, even though the salary is lower than my previous one! 🤔
Here’s what I know and some things I’ve considered:
– Salary at new job is £1.5k lower per annum
– Bringing home an extra £23 each month
– No access to old payslips for comparison
– Plan 2 student loan, but always below repayment threshold
Any idea what could be causing this difference? 🤷♂️ Could it be related to taxes or deductions that are different between the two jobs? Or maybe some other factor I haven’t considered?
One possible solution I thought of is that maybe my new job has a more tax-efficient setup, resulting in a higher ‘take home’ income despite the lower salary. 🤔💡
Would love to hear your thoughts and insights on this salary mystery! Let’s crack the code together! 💸💼 #NewJob #IncomeComparison #FinancialMystery
Your pension contributions might be lower
Do you have the same deductions, i.e pension/holiday anything else
Otherwise and the most likely outcome Did you have a gap between work even a week or two, if so you won’t have been earning against your taxable income and this is HMRC adjusting your tax
If so you’ll see your pay get less as the months go by
This is because on PAYE HMRC have no way of predicting your go forward income
So at the end of June you’ll be 3 months into the tax year so a 1/4 of your tax free allowance.
You can check your pay by googling salary takehome calculator put your pay in and work out where your expected monthly should be once this levels out
The last bit is you didn’t say how long ago you had the other job, this might be because of the NI cut
NI went down 2% in January and 2% in April so if you’ve been out of work since then it could be that?
Could be that National Insurance contributions lowered earlier this year?
Have you compared your payslips?
Could be any one of a few things. Check your payslips.
1) lower pension contributions
2) different pension arrangements (eg ss vs ras)
3) NI has dropped from 12% to 8% over the last 6ish months
4) if you had a gap in employment then you have extra unused PA
5) if you changed jobs since April (this tax year) then you’ve “overpaid” tax in the first few months compared to your new salary and are getting some of it back.
6) your new and old job are using different tax codes
Etc.
We can’t say which it is without seeing your payslips, but I probably wouldn’t be worrying about it in all honesty.
It will indeed work itself out over the course of this fiscal year. However in my experience the most likely cause is that your employer has got your tax code wrong.
There’s some law that days that the employer had to hold onto your payslips for a certain amount of time. So you can still contact them and het your payslip saying it’s fot your reference. If you left on bar terms, go straight to HR and should be able to help then you can compare your payslips. It may be that you’re on a wring tax code?
Need more information to be able to decide really.
1.5k might put you in a different tax bracket, changes to national insurance, incorrect tax code, different pension contributions, etc.
You can contact your old employer for a copy of your last “X” payslips if you like. They need to keep that data for 5 or 6 years at least.
Check your tax code is correct on new payslip