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14-12-19, 05:24AM

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Author Topic: Pfs breaks  (Read 3216 times)

NightAndDay

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Re: Pfs breaks
« Reply #25 on: 29-08-19, 11:47AM »
If you look at your April 05 payslip via payslipview, you'll notice that your total tax paid for the tax year isn't exactly 20% of all earnings above £11,850  the difference in what would make it exactly 20% is the amount owed and demanded from HMRC.

80377494

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Re: Pfs breaks
« Reply #26 on: 29-08-19, 01:53PM »
copied from the Company website.

Our four-weekly pay periods mean we have 13 pay periods in a tax year, but occasionally there will be 14, as will be the case in 2018/19.

On the 14th pay day in 2018/19 (5 April 2019), colleagues will be taxed as per the 13th pay day (8 March 2019), meaning there will be no immediate impact and colleagues do not need to take action.

This means, however, that colleagues will receive four weeks extra personal tax allowances in the tax year 2018/19 and in most cases therefore, pay less tax than they should in that tax year.

When the tax year has closed, HMRC will review how much tax each colleague has paid in 2018/19 and will make contact directly with each colleague to confirm how much they owe and agree how they will pay this back.


This is the scenario for a colleague who pays 20% tax.

Sue has a tax code of 1185L with taxable earnings of £25,000 up to the pay day on 8 March 2019 (her 13th payment in the 2018/19 tax year). Sue’s taxable earnings from 9 March to the 5 April 2019 pay day (her 14th payment in the 2018/19 tax year) are £2,000, giving total taxable earnings of £27,000 for the 2018/19 tax year.

All of Sue’s 2018/19 personal allowances have been used against her first thirteen payments in the tax year. However, to prevent Sue’s 14th payment on 5 April 2019 being impacted as a result of this, Tesco follows HMRC guidelines and applies Sue’s normal tax code to this 14th payment, in other words the 14th pay period is treated as the 13th.

In September 2019 HMRC review Sue’s 2018/19 tax position and determine that she has underpaid by £182.31, which is the additional personal allowance received in her 5 April 2019 pay (11,850/13 x 20%).

HMRC agree to collect the unpaid tax of £182.31 in thirteen instalments through Sue’s 2020/21 tax code, meaning it will be split over her 13 pay periods.

Spaceranger1

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Re: Pfs breaks
« Reply #27 on: 29-08-19, 06:20PM »
Cheers. I begin to understand.