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My husband has been on Paternity leave since April. He has now resigned and has his last holiday pay. Why has he been taxed so much + paid more NI?

What does EESP mean? His leaver/ holiday pay was£2968 but bottom line we've had £2051!


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You need to take into account total earnings since 6th April, his personal tax code for this year and the various tax brackets he crosses. If he's had other payslips since 6th April then has his personal tax code changed between the slips ... sometimes this occurs during the year and they will collect the backdated difference immediately in the slip it occurs on because it should have applied since April. Does he work for Tesco's by any chance ? There is a sample payslip with explanation available online with a simple google search of the acronym. But they don't state what the acronym stands for, but just appears to be a copy of year to date gross pay. I'd expect to find the acronym explained somewhere online but it isn't abundant or consistent so it must be an in house term. History is a good guide ... what happens to this line item in his other pay slips. Don't be afraid to ask the company to explain the wage slip, they are obliged to ensure you understand it so that you know you are being given due consideration of the employment contract you are/were employed under. I've done this a few times when I've left a company. On one occasion I had quite a pantomime with the HR person when I left a company because they'd lost track of the holidays I'd taken and this made her look pretty stupid trying to claim I'd taken more than they thought but had no records to back it up. Especially when they are trying to get you not to take holiday because they need you so much ... then don't like paying it out when you leave with nearly three weeks accrued !

EESP is not a recognised abbreviation but I would assume that the EE stands for employEE. I guess that it is some form of pension contribution. Where holiday and leaver pay is on the same payslip, it is likely that the period paid covers more than one month, but the personal allowance will be for only one month. Consequently the effective tax rate will seem higher. NI will also be higher for the extra pay he has received. It is better to look at the previous payslip as well, to see how each of the entries compares. Please bear in mind that if he doesn't work again this tax year, he will be due a refund of tax at the end of the year in respect of the monthly personal allowances that he will not have received. Mike

Will we have to do anything to get the tax refund? Many thanks both, very useful comments! (Yes, it was Tesco!!). Thanks.