Pay Slip Query

[CYNthesys]

My son started a new job on week 50 of the last tax year.

His was paid a week in hand on his previous job, so his final wage was paid on week 51. He handed his P45 into his new employer, but has been taxed on a BR basis. Shouldn't his new employer have applied the code number shown on his P45?

Secondly I cant make much sense of his pay slip.

It shows under basic pay xxx number of hours at xxxx = xxxx

The next column says EXCHALL (whatever that means) = xxxx

The 2 added together = his gross wage

Deductions show Tax of xxxx
NI of xxxx
EXCHDD (whatever that means) of xxxx

The EXCHDD amount is always greater than the EXCHALL amount, which in turn reduces his basic pay.

Does anyone have a clue as to what these codes mean please?

[leclerc]

Re: Pay Slip Query

My son started a new job on week 50 of the last tax year.

His was paid a week in hand on his previous job, so his final wage was paid on week 51. He handed his P45 into his new employer, but has been taxed on a BR basis. Shouldn't his new employer have applied the code number shown on his P45?
They should do but firms can be quite slow in doing so. You might want to give HMRC a quick call to get them to send something to the firm(I did with my current job when I was taxed BR. It was sorted by the following pay date).
Secondly I cant make much sense of his pay slip.

It shows under basic pay xxx number of hours at xxxx = xxxx

The next column says EXCHALL (whatever that means) = xxxx

The 2 added together = his gross wage

Deductions show Tax of xxxx
NI of xxxx
EXCHDD (whatever that means) of xxxx

The EXCHDD amount is always greater than the EXCHALL amount, which in turn reduces his basic pay.

Does anyone have a clue as to what these codes mean please?

I have no idea what EXCHDD means....

[WendyB]

Re: Pay Slip Query

At the risk of my sounding thick...wouldn't it just be simpler for him to ask his employer to explain his payslip?

[CYNthesys]

Re: Pay Slip Query

He already has done, but its still as clear as mud.

Employer seems to be saying that these codes represent non tax deductible income, (often used when the employee is in in receipt of non-taxable benefits) and that by using these codes he is paying less tax than he normally would whilst on a BR code

Ive had a look at his payslips and can see that he isnt paying tax on the whole of his gross wage, eg if he earnt £300 he would would pay £60 tax whilst on BR code, The amount of tax he is paying seems to be reduced by the difference between the EXCH ALL and the EXCH DD amount.

Seems very odd to me ?????

[WendyB]

Re: Pay Slip Query

thins like expenses (mileage etc) may be paid as part of wages but are paid gross, no tax deducted. Also pension contributions would be non taxable.