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Backdated salary! help!
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Hi all I was wondering if someone could do me a massive favour with this and help me out.
I changed jobs in July 2009, my annual salary dropped from £15616 to £14000
It turns out my employer wasnt allowed to do this and therefore I have had my salary backdated for me.
I was expecting £2000 roughly after tax
My salary was £14000 until around July 2010, and then it went up to £14700 for the remainder.
I pay a normal level of tax.
Does anyone know how I'd work this out?
Ive had my backpay through and its come through at around £1200 after tax which was a bit less than I was expecting
I changed jobs in July 2009, my annual salary dropped from £15616 to £14000
It turns out my employer wasnt allowed to do this and therefore I have had my salary backdated for me.
I was expecting £2000 roughly after tax
My salary was £14000 until around July 2010, and then it went up to £14700 for the remainder.
I pay a normal level of tax.
Does anyone know how I'd work this out?
Ive had my backpay through and its come through at around £1200 after tax which was a bit less than I was expecting
0
Comments
For the rest (Aug 10 - Feb 11) you get 7 months of £916 (£15616 - £14700) which is approx £534 (916 divided by 12 and then times by 7)
Your pre-tax backdated pay is £2150 (£1616+£534). You then have to pay 20% tax AND 11% national insurance contributions on your backdated pay leaving you with about £1483.50 net (2150 less 666.50)
You payroll department may have worked it out another way, based on actual dates etc (and I've done the caculations based on a normal basic rate taxpayer, NI rates etc), so I would ask them for a breakdown of the figures if they still dont make sense.
I think I was being a bit optimistic and looking at the figures it all makes sense now