Payed 15/16 salary balance in 16/17, taxed more heavily as a result. Any way around it?

Salary balance payment from last tax year

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Hello. In 15/16 I was underpaid for eight of the months, apparently due to some clerical error which dropped me down to the wrong hourly rate. I alerted my employers immediately, giving them what I imagined was ample time to correct the issue (they didn't contest the matter at all - explicitly agreeing with my assessment of the situation, in fact). Nothing got changed and I had to chase it up each month until finally I received a lump sum to balance things, in May of 16/17.

Unfortunately, the amount having been paid to me in this tax year (instead of last tax year when it was originally due) has meant that I give up about 30% more of it (income tax at a higher band and NI at the full 12%), amounting to over a week of last year's wages.

Is there even any way for my employer to correct this, if I could persuade them that they should? Can they somehow back-date payments into the last tax year, or is it too late now given that they've already paid me the lump sum now and it's been taxed as though it belongs in 16/17?

Thanks,

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By tom123
24th May 2016 12:18

How much did you earn in 2015/16 per your P60, and how much are you expecting to earn in 2016/17?

This will give us an idea of whether you are likely to lose out overall.

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7om
By Tom 7000
24th May 2016 16:34

might come out in the wash as the yar progressess...but we need some numbers to do the maths

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By RC25
24th May 2016 16:50

Cheers - I'll get the full figures when I'm home but as a rough estimate I think that last year I *netted* about £9180. The extra sum in question is around £840 and so I think I would have stayed within my allowance last year.

This year I should gross £11969, so anything on top of that is being taxed.

Silly little numbers for you guys, I'm sure, but every penny counts down at this level, haha

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