Linda Kelly | 19 March 2019
You may not be able to tell at a first glance that there is any difference from your March pay slip, but it is worth giving your April slip a closer look than usual.
All employees should always check their April pay slip, even if you pay little attention to the other eleven you receive over a year. The items to check include:
- Salary: Pay rates often change from 1 April, usually coinciding with the start of their new financial year. If you were notified of a pay increase in March, it is worth making sure the amount on the April pay slip agrees with what you were told.
- Tax code: Your April pay will be the first for the 2019/20 tax year and your PAYE tax code will most likely have changed from what was on your March pay slip. If you are entitled to a full personal allowance and have no deductions, your code number should increase by 65, reflecting the £650 increase in the personal allowance.
- National insurance contributions (NICs): The starting point for NICs rises by £4 a week while the upper earnings limit (the top level of earnings on which you pay full 12% NICs) jumps by £70 a week. Therefore, if your annual earnings are more than £46,600 a year, you will be paying more NICs from April. If you earn over £50,000 a year, your extra NICs will be just over £28 a month.
- Pension contributions: Contributions are generally linked to salary, although not necessarily your full pay, so should increase if you have an April pay increase. If you are in an automatic enrolment pension scheme, your contributions are usually based on “band earnings”, which were £6,032–£46,350 in 2018/19 and are £6,136–£50,000 in 2019/20. The contribution rate will rise, too, and will depend upon your employer’s contributions. You might see the rate increase by two thirds to 5% of band earnings (4% after basic rate tax relief). If your pay in April is lower than in March, the auto enrolment change could be the culprit.
For more insight on the impact of the tax, NICs and pension deductions from your pay, please get in touch with our Payroll team.
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