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overtime question


leemond2008
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ok then, when working overtime will the tax man rape your more if you work more hours?

someone at work mentioned the other day that you have to do 10 hours to make it worth your while then you may as well stop unless you do 20 because the amount of tax you pay will make it worthless

and if you do over 20 you need to do 40 to make it worth your while etc etc

I dont know how it works to be honest but there has been some debate about it and no one seems to have a definitive answer

any one able to clear it up

(oh and if it means anything I work a bog standard 35 hour week)

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Why would this be the case? You get taxed a percentage of what you earn? That percentage doesn't change just because you work more hours? The only difference to this would be if the amount of overtime you worked meant that your extra earnings pushed you into the next tax bracket? Obviously we cant answer that without knowing what you actually earn and how much extra you will earn by doing the overtime? but basically if your not going to earn over £35k then your tax will stay at 20% of what ever you earn?

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I think people make the mistake sometimes of thinking if you go over a tax boundary, your entire salary is taxed at the new percentage, whereas it's obviously only what you earn OVER that boundary that is taxed at that percentage.

BUt yeah, as bromsgrove said, it might be worth LESS because your OT may be taxed higher. But it's never going to be the case where you're effectively working for nothing because you're being taxed so much.

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It depends how much you earn. Unless you earn close to the upper limit of your tax band then you'll just be taxed as you currently are. You are much more likely to be done over by national insurance which goes up dramatically when you do a lot of overtime

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It depends entirely on your salary. Everybody has a different tax code, but very broadly speaking in the UK you will pay 20% on anything you earn between 8k and 43k (8k personal tax free allowence + the 34.5 K base rate bracket) and then you will pay 40% on anything you earn above £43k until you hit the 50% threshold, which you will pay on anything you earn above £150k a year.

What you could do is set yourself up as a limited company in the Cayman islands and sell yourself, or at least the UK part of yourself, a pencil. Then declare that you paid £400,000,000 for the pencil and you probably wont have to pay any tax at all. (well, it worked for Starbucks didnt it?)

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it's PAYE so if you earn 10k one month HMRC would assume you are going to earn that every month and tax ( and NI) you accordingly from that pay packet

the next month when you then only earn £1k , it calculates your over payment and gives you a refund

we have it all the time as we employ around 800 part time workers whose pay is different each month , sage is linked through to HMRC web site so knows exactly what is going on (in theory)

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There isn't any time where earning an extra pound will make you worse off. You might get less back from your pound (if it pushes you into a higher tax rate, reductions in things like working tax credits) but you'll always see an increase in your take home pay.

The entire system is designed so that's true, anyone that tries to claim that you'll take home less for earning more, doesn't understand what they're on about.

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It all depends on what happens in the first possession. Field goal means the other side gets a chance to match or beat, any other score decides things immediately. After the first possession, it becomes first to score wins.

Or did I forget which forum I was in?

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any other score decides things immediately.

What if on the first play the offensive team punts, and the receiver muffs the punt and then on attempting to recover it knocks it into the end zone, where it's recovered by a team mate, but in doing so scores a safety for the kicking team?

Then you're 2 points down, with possession, which isn't as bad as being down a field goal, so it wouldn't seem right to end it there...

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Whilst on the subject of overtime...

My contract states "I must do reasonable overtime as and when required"

But basically I get forced into overtime even though there's always a standby engineer. When I say no I get a phone call from the managing director saying I have to go it's part of the job, I'm closest etc etc. But can they do this? what would be classed as "reasonable" overtime? the sent a memo out after a few of us would switch our phones off at half 5 and go home saying "we must phone in after every job to see if we are required to do any further work and we must give a days notice if we want an on time finish"

I **** hate overtime they can keep their money, but what I hate more is the fact I don't feel in control of what hours I will do!

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There isn't any time where earning an extra pound will make you worse off. You might get less back from your pound (if it pushes you into a higher tax rate, reductions in things like working tax credits) but you'll always see an increase in your take home pay.

The entire system is designed so that's true, anyone that tries to claim that you'll take home less for earning more, doesn't understand what they're on about.

Ha, nah he wasn't saying that it would make you worse off, he just seemed to think that spending 3 hours of your own time after work for example wouldn't be worth the extra money that you would take home. Or something like that

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I'm about to get right royally buggered for overtime in next weeks pay packet. I did two weeks work away in Manchester the other week, where I not only get paid 33% more per hour plus I get 1 hours travelling time each way, so ten hour days, 5 days a week (I normally only do 32 hours a week) plus I did some of my own shifts at weekends between the weeks paid at normal rate. I've done it a few times and the secret is to look at the money you pick up not the money that HMRC take

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Whilst on the subject of overtime...

My contract states "I must do reasonable overtime as and when required"

But basically I get forced into overtime even though there's always a standby engineer. When I say no I get a phone call from the managing director saying I have to go it's part of the job, I'm closest etc etc. But can they do this? what would be classed as "reasonable" overtime? the sent a memo out after a few of us would switch our phones off at half 5 and go home saying "we must phone in after every job to see if we are required to do any further work and we must give a days notice if we want an on time finish"

I **** hate overtime they can keep their money, but what I hate more is the fact I don't feel in control of what hours I will do!

Have you got a HR rep?

If so, just straight up ask them.

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Whilst on the subject of overtime...

My contract states "I must do reasonable overtime as and when required"

But basically I get forced into overtime even though there's always a standby engineer. When I say no I get a phone call from the managing director saying I have to go it's part of the job, I'm closest etc etc. But can they do this? what would be classed as "reasonable" overtime? the sent a memo out after a few of us would switch our phones off at half 5 and go home saying "we must phone in after every job to see if we are required to do any further work and we must give a days notice if we want an on time finish"

I **** hate overtime they can keep their money, but what I hate more is the fact I don't feel in control of what hours I will do!

Who the heck do you work for, the USSR?

Crickey. Go freelance.

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  • 7 months later...

Thought I would drag this back up.

 

come the end of this week I will have done 44 hours overtime in just over 2 weeks, its nearly **** killed me, only thing is that I was going to maybe do next week (which will take me up to arount 70 hours) and then knock it on the head but now because we are still in the shit at work there are rumblings of forced overtime.

I know they cant just drop it on you without giving you any notice but surely they would have to let me off on the account that I have already gave them well over a weeks work and if I do carry on with overtime next week then that will be nearly 2 weeks work that they have had out of me.

 

I am just waiting for them to turn around and try to tell me that I have to do another minimum of 20 hours on top of what I have already done (oh and I am pretty much the only **** that is actually doing it at the moment, to the extent that I am currently on 44 hours and the most that anyone else has racked up is 15 hours)

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If it's in your contract that you have to do "forced" overtime if they want you to then I'm not sure you can get out of it.

 

A decent employer would probably listen to you though if you reasonably explained why you didn't want to do it on account of you'd already done 20 hours (and so you've done your bit).

 

But from how you've described your workplace before I'd guess you're more likely to have a battle to the death with your boss than a civilised conversation ;)

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