Hi,
I am new to HR and would appreciate your insight.
I have resigned from my current job on 4/02/22 and my notice periods goes up to 04/03/22.
I was expecting to be paid as usual for February . And then receive payment for any accrued holidays with my March pay since my official last day of work is in March.
I am on annual leave from 23/02/22.
My employer is intending to make a final payment in
February which will include: February pay and AL, and March AL until 04/03/22 and any accrued holidays.
Is this correct?? Or should I receive my final payment in March??
Thank you
Fatima .
As income tax calculations are cumulative between February and March it matters not at all for that. National Insurance isn’t cumulative though, so unless you are a very high earner you’ll be paying full NI on your February payments whereas if part had been paid in March, anything paid in March that did happen to come out in total to a monthly payment due that was below the lower NI earnings limit of £797 monthly wouldn’t attract an employee NI deduction which I think is 12%, so depending on the exact payments due, you may pay a bit more NI the way they’ve decided to pay it ( although it may be at their discretion entirely when they do.) Double-check what I say with whoever calculates the payroll though, because it’s a very long time since I had anything to do with running them.
David's absolutely right - if all the payments are made in one month, you'll pay more tax and NI. You'll eventually get the tax refunded to you when HMRC work out that you didn't get paid anything in March, but you will overpay NI.
