Help with Aggregated Assignments
We sent out a communication in March detailing changes to tax for multiple post holders.
Below is a detailed example of how your tax is calculated on a week-by-week basis.
| Each accounting period for tax purposes includes one month (and four or five weeks). | ||||||||
| Your tax code tells us how much you are allowed to earn before you pay tax, this is called free pay. | ||||||||
| As you are receiving your pay both weekly and monthly, the system will use two sets of free pay amounts then add everything together in week 4/5 to calculate your tax for the whole period. | ||||||||
| Tax and free pay are cumulative so as each week/month progresses your pay is added together and so is your free pay- please see the example below | ||||||||
| On some weeks it may look as if you are paying more tax than you should, please be reassured that this is not the case, you will never pay more than the Monthly threshold, but you may have paid lower tax or received a refund in earlier weeks, which offsets against larger deductions in later weeks.
Tax code 1257L provides: Weekly Free pay £241.73 Monthly Free pay £1,047.50
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| Weekly Free pay
£12570/52 |
Monthly Free pay
£12570/12 |
Pay Example | Tax Example | Pay Date | ||||
| Period 1 | ||||||||
| Week 1 | £241.73 | You could receive a tax refund | 250.00 | 1.60 | 12 April | |||
| Week 2 | £483.46 | You could receive a tax refund | 250.00 | 1.60 | 19 April | |||
| Month 1 | £1,047.50 | 3000.00 | 487.00 | 24 April | ||||
| Week 3 | £725.19 | You could pay more tax | 250.00 | 250.00 | 26 April | |||
| Week 4 | £966.92 | You could pay more tax/Refund | 250.00 | -107.40 | 3 May | |||
| 4000 | 632.8 | |||||||
| Period 2 | ||||||||
| Week 5 | £1,208.65 | You could receive a tax refund | 250.00 | -24.80 | 10 May | |||
| Week 6 | £1,450.38 | You could receive a tax refund | 250.00 | 1.60 | 17 May | |||
| Week 7 | £1,692.11 | You could receive a tax refund | 250.00 | 1.60 | 24 May | |||
| Month 2 | £2,095.00 | 3000.00 | 519.40 | 29 May | ||||
| Week 8 | £1,933.84 | You could pay more tax | 250.00 | 135.00 | 31 May | |||
| 4000 | 632.8 | |||||||
| Period 3 | ||||||||
| Week 9 | £2,175.57 | You could receive a tax refund | 250.00 | -51.20 | 7 June | |||
| Week 10 | £2,417.30 | You could receive a tax refund | 250.00 | 1.60 | 14 June | |||
| Week 11 | £2,659.03 | You could receive a tax refund | 250.00 | 1.60 | 21 June | |||
| Month 3 | £3,142.50 | 3000.00 | 503.4 | 26 June | ||||
| Week 12 | £2,900.76 | You could pay more tax | 250.00 | 177.40 | 28 June | |||
| Week 13 | £3,142.49 | You could pay more tax/Refund | 250.00 | -77.40 | 5 July | |||
| (5 Week Accounting Period) | 4250 | 555.40 | ||||||
