Pay2000 - Letter of Redress for Non-payment of Backpay

#1
I have been given a letter that has been submitted as a redress for non-payment of backpay and lump sum from the Pay2000 L2L catch up in Jan - Apr 2006. It can be changed to suit personal circumstances and details. ACAS have been contacted and have stated that grievances have to be answered by the Chain of Command within 28 days. Queens Regs state that all grievences have to be submitted within 3 months so be quick.

The letter gives no unit, name or rank. It should be submitted to your OC on official Unit headed notepaper. If enough people submit this letter we should see some action or at least get the answers we all require.

If you would like a copy of the letter, e-mail me at pay2000@hotmail.co.uk
 
#3
I was given 8 Grand Gross (5K Net) in back pay. Heres the rub. The 8K gross took me over the 40K tax threshold, and as such my working tax credit and child tax credits have been stopped for the next year (200 quid a month). So not satisfied with taking 40% of the 8K backpay in tax, uncle Gordon has shafted me with a wire brush. What backpay?
 
#4
DigitalGeek said:
I was given 8 Grand Gross (5K Net) in back pay. Heres the rub. The 8K gross took me over the 40K tax threshold, and as such my working tax credit and child tax credits have been stopped for the next year (200 quid a month). So not satisfied with taking 40% of the 8K backpay in tax, uncle Gordon has shafted me with a wire brush. What backpay?
Unless you have an absolute tribe of kids I dont see how you need (or qualify for) £200 child credits a month from a £33+K annual salary.

Go through a lot of chav outfits?
 
#5
DigitalGeek said:
I was given 8 Grand Gross (5K Net) in back pay. Heres the rub. The 8K gross took me over the 40K tax threshold, and as such my working tax credit and child tax credits have been stopped for the next year (200 quid a month). So not satisfied with taking 40% of the 8K backpay in tax, uncle Gordon has shafted me with a wire brush. What backpay?
Impossible - if you earn between 25K and 58K then you DO NOT qualify for and working tax credit (for low income households) and iresspective of how many sprogs you've got (they only count to 3! - no extra for 12!), you only qualify for £545 per month or £45.42 per week. If your combined household income is above 58K you don't get ANYTHING!

Additionally, you have recieved BACKPAY. Your eanings have NOT increased by 8K per year. Therefore, even though you have broken 40K this year (or last tax year) it DOES NOT affect your income tax and it will stay at 22.5%.

I would suggest your loss of £200 per month is due to something else. If you have been getting this amount from tax credits, i would suggest they have noticed it and are claiming back the overpayment. This has happened to me and i won't be getting any payments for nearly 3 years!
 
#6
Disco said:
DigitalGeek said:
I was given 8 Grand Gross (5K Net) in back pay. Heres the rub. The 8K gross took me over the 40K tax threshold, and as such my working tax credit and child tax credits have been stopped for the next year (200 quid a month). So not satisfied with taking 40% of the 8K backpay in tax, uncle Gordon has shafted me with a wire brush. What backpay?
Unless you have an absolute tribe of kids I dont see how you need (or qualify for) £200 child credits a month from a £33+K annual salary.

Go through a lot of chav outfits?
No just a disabled son - now shut your trap :evil:
 
#8
As i said before, you have recieved BACKPAY - this is a one off payment which is subject to tax. Your pay will have increased due to your payrise but not by 8K per year.

For your new payrise to take your earnings above 40K you must be getting paid at least as a Higher Range, Level 5, WO1. (unless you get additional taxable specialist pay).

This may be correct, but again, if it is not right i suggest you investigate.
 
#9
The 8K appeared on my P60. I have queried this, and am awaiting clarification. Whatever the reason, it's a bit of a drag!

Plus the fact that they still took 3K off me in tax - that would be er.....40%
 
#10
Tiffy, not sure what you're on about old bean. As stated by Digital Geek the fact that you have received this money as BACKPAY or not doesn't change the fact that your earnings for that year increase by 8k placing some people in the 40% range. Same thing happened to me which meant when I submitted my tax return last week I received a tax bill for the interest earned from my savings which were origonally only taxed at 20% not the 40% level I jumped into at the end of the last tax year.

Not sure if a redress path will help in this instance as the advice I have received is that the issue of tax is between the individual and the tax office (maybe a brush off?). Although, it is a way of highlighting a problem to the powers that be as a redress ends up at the Army board if it's not settled.
 
#11
The issue of tax is indeed between you and the tax office.

It is nothing to do with the Army. As far as they are concerned they have done their bit by correcting the error and giving you the dosh.

Your gross earnings for that year exceeded 40K as far as the inland revenue are concerned they will tax you at 40%. They do not know why your earnings have jumped up so much.

Backpay is not a bonus, it is earings that you would normally have recieved over previous months and years which would have been taxed at the normal rate (which for whatever reason you did not recieve at the correct time). If this is not realised by the tax office, it is entirely up to you to contact them and explain the situation. There is an office of the inland revenue that deal solely with the forces and better understand our 'squaddie speak'. Your RAO will have the contact number.
 
#14
When the Army gives you backpay is has to tax you on it. On your paystatement it usually breaks it down into years (simply because back pay is subject to annual pay rises etc). Once you have received your money and the pay statement send a copy of it to the tax office in Cardiff and get them to recalculate your tax.

Under taxation rules backpay is taxed in the year it was earnt, not the year it was received. Further advice is available on the HMIT web site and like I said, from the tax office in CArdiff.
 
#16
UPDATE

From PS10(A)

1. As a result of Pay 2000 Follow-on-Work (P2KFOW), in Feb 06, a number (428) of soldiers across the Army, but in particular RA WO2s, RE Clerk of Works, R Sigs Sgts / SSgts / WO’s and REME Artificers, were “advantaged” as a result of the sequencing of the processing of the award of an Employment Qualification (EQ) and promotion with the same effective date.

2. For those who were processed, promotion followed by award of EQ, have been “advantaged”, those who were processed, EQ followed by promotion, have not been “advantaged”. It is prudent to point out that no soldier has been disadvantaged.

3. “Advantaged” soldiers were given an increase of several pay levels and back pay (some received £10K) dependant upon when they were originally granted the EQ and promotion: for some going back as far as Apr 2001.

4. Prior to 1 Jun 06 The Army Pay Warrant (PW) did not determine the correct sequencing of a number of events, which includes the award of an EQ and promotion, with the same effective date. Post 1 Jun 06 the PW has been amended and now is quite clear that when an EQ and promotion have the same effective date the EQ must be actioned before the promotion, this will ensure clarity for future occurrences.

5. Whilst I accept that the Policy contained within the PW prior to 1 Jun 06 was not explicit, I am firmly of the opinion that the intent is quite clear – This is supported by the requirement for the soldiers to be qualified before they are promoted. Clearly we need to ensure that not only are soldiers treated equally and fairly, but it must be seen to be fair.

6. Currently PS10(A) is awaiting further legal advice on this complex issue, once received a comprehensive brief covering all the options will be submitted to DAG for a decision. It is anticipated that a brief will be submitted before the end of Jun.

7. Whilst it is every soldiers right to submit a Redress of Grievence when they believed they have been wronged: any Redress submitted will be held pending DAG’s decision. Furthermore once DAG has ruled, this ruling will be applied to all affected personnel.

Just waiting on DAG decision.......but word on the street is how to recover the money and NOT provide additional money to those who have not yet recived it.
 

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