Payroll is processed on a weekly basis. Depending on your tax code you can receive a weekly tax free and National Insurance allowance.
If you’re on a tax code 1000L Wk 1, this mean you only receive your Tax and NI allowance on a weekly basis, so if you submit 2 or more timesheets in one week you only receive one weeks tax free allowance and Ni contributions will be higher..
Please see example below which shows what you would receive if timesheets were processed in separate weeks:
Timesheet processed in week 1: 20hrs @ 9.05 = £181.00
Timesheet processed in week 2: 20hrs @ 9.05 = £181.00
Tax deducted for each timesheet = £0.00
Ni Deducted for each timesheet = £3.36
Net pay = £177.64 weekly
Total Net pay in the 2 weeks combined = £ 355.28
Please see example below which show what you would receive if timesheets were processed in the same week:
Timesheet 1: 20hrs @ 9.05 = £181.00
Timesheet 2: 20hrs @ 9.05 = £181.00
Tax deducted = £33.90
Ni Deducted = £25.08
Total Net pay = £303.02
As you can see from the examples you can see a difference of pay £52.26 making very beneficial that you should enter your timesheets on a weekly basis.
For more information on tax please click here.
For more information on National Insurance please click here.