0

I am a Senior Office Administrator. I have been employed by 2 companies with one director for the past 5.5 years. My salary was split between both companies 50% / 50%

I was employed by Company A. being the larger company and company B. being smaller.

Since i started with the companies in 2018, i have received a salary increase every year.

Since 2021 Company A. has grown significantly going from 20 staff members to 60 staff members in 2023. My work load has increased tremendously so my hours were increased with Company A. From October 2023 i was asked if i would like to join Company A. full time, i was assured my salary would not be less. However after deductions my salary is now significantly less because of the deductions changing as i am now only employed by one company.

I raised the issue with my line manager and payroll. I mentioned that i was told my salary would still be the same however because i chose to move over to the one company i will now have to take a loss on my salary of £300. I think this is extremely unfair and i now wish i had not taken their offer. I don't understand why this was not brought to my attention or made aware that this may be the case if i move to Compony A.

The Director has now informed Payroll that there is nothing he can do as my gross salary is still the same but my net will change because of the deductions.

I find this extremely unfair! Working for a company for so many years, going above and beyond and this is the answer i get. I was also told that because of all the previous salary increases i will no longer be receiving an increase because my salary is currently 20% over the threshold of what it should be for my position and the area.

I feel deflated, totally unappreciated or validated! Am I wrong to feel this was a sneaky move on Company A. part?

5
  • We can't tell you how are you supposed to feel. And while I symethise is there something we can actually help with? Do you have a question, besides the obvious that you likely should look for another job.
    – Aida Paul
    Oct 27, 2023 at 15:15
  • 4
    What deductions are causing you to lose more money? I assume your tax obligation would be the same if your salary stayed the same. If it's a benefit cost then it's fair since you are presumably getting more benefits now as full time. Oct 27, 2023 at 15:52
  • 1
    Is your loss of salary £300 a year? A month? A week? Oct 27, 2023 at 18:26
  • £300 a month, apologies i should have stressed that. Oct 30, 2023 at 8:35
  • I think we need (suitably redacted) real numbers from your before and after payslips. But more importantly, I would urge you to change your username and/or avatar photo, if that's who you actually are...
    – AakashM
    Oct 31, 2023 at 9:52

3 Answers 3

4

The first question is why exactly your take-home is now lower. What exactly are these "deductions", and why are they so much higher now?

Am I wrong to feel this was a sneaky move on Company A. part?

"Sneaky" implies that this was something that they did intentionally to screw you (i.e, they knew that this would decrease your take-home income, but hid that from you). It's also possible that this is down to incompetence - that they didn't appreciate the difference that this changes around deductions would make to your take-home (and it seems that you didn't either).

No one here can tell you which of those things is true - because we don't know what your manager was thinking or why they make the decisions that they did.

But really the question is what should you do now. You've already asked them to increase your salary, and they've declined. Your next step should be look carefully at exactly what they promised you, and to talk to your union rep (and possibly ACAS) to see if they think you have a strong case in demanding a pay rise.

And if they say no, then you need to decide whether you want to stay working for a company that you resent and no longer trust, or if it's time to find new employment. And that really comes down to whether you can put this behind you or not - because if you're always going to feel bitter about this then it's going to be a bad relationship going forward, and you'll be much better off in long run leaving.

1

Yeah, something isn't sounding right here - tax deductions (income tax and NI) should be the same (or if anything slightly reduced) in this scenario, assuming all the pay has been done through PAYE.

What is a distinct possibility is that the changeover has lead to your tax code being wrong - HMRC may have done their usual SNAFU of "assuming" that you've used your full personal allowance for the year on the job for Company B, if that's what's happened you should be able to use your P45 from Company B to get them to update your tax code for Company A, failing that it might have to wait for your P60 at the EoY.

2
  • 3
    I almost wonder if the tax code has always been wrong (using the same tax code for both job A and B) and that the questioner hasn't paid enough tax previously. It's irrelevant to HMRC that the two companies are owned by the same person - for tax purposes OP just had two jobs and now has one full time one. Oct 28, 2023 at 6:31
  • @seventyeightist also possible, if they've been employed in this way for a while I'd suggest it's more likely that it's gone wrong now than the other way around but it is HMRC after all
    – motosubatsu
    Oct 29, 2023 at 9:48
0

If the total salary is £300 gross, then almost certainly what has happened is that the consolidation of the two employments into one has caused the total earnings in a single employment to exceed the "primary threshold" for paying National Insurance - currently £242 a week.

This is currently a rate of 12% on the whole earnings (i.e. once the threshold is passed, the rate becomes due on everything including the slice of earnings beneath the threshold), so about £36.

When the employments were separately each paying about £150 however, this was beneath the "primary threshold".

The employer also now has to make an additional 13.8% contribution purely out of their pocket - an extra £41.

In all honesty, it sounds like it was probably an oversight, caused by the employer not understanding details about payroll matters like this and how their proposal would change the situation for you. Very few people are readily aware of these strange corners of the system.

I doubt it was "sneaky" plan, unless the purpose was purely to get you to give up your position with Company B (where you would have been entitled to redundancy pay and protection from unfair dismissal).

2
  • I think you have misunderstood, the extra deductions are £300, not the gross salary
    – motosubatsu
    Oct 29, 2023 at 9:42
  • @motosubatsu, I can't see any clarity from the OP on that point. The way I've read it, she's saying her salary is £300 a week, and she's now having to take a loss on it (i.e. take a loss on a very modest salary to begin with). Anyway, leaving aside maladministration (either now or beforehand), the NI thresholds are the most likely explanation for why the merger of two separate part-time employments would lead to a surge in deductions. I'm not aware of any other explanation - pension auto-enrolment (threshold £10k p/a) has an opt-out, and someone would surely have advised the OP about that.
    – Steve
    Oct 29, 2023 at 9:58

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .