Pro rata

Pro rata is a Latin term which means proportional. In the context of income and taxes, it is most commonly used when referring to part-time work. In these circumstances, you would get a proportion of a full salary and other benefits, based on the number of hours you work per week. If the full salary for your job is £40,000 per year based on a 40 hour work week, but you only work 25 hours per week, you would get a pro rata salary of £25,000 per year.

Reasons you may be receiving a pro rata salary

You might be pro rata because you:

  • Work part-time
  • Started work in the middle of the month
  • Got a raise in the middle of the the month
  • Only work for specific months (seasonally)
  • Have taken unpaid leave
  • Benefits and perks on a pro rata salary

Most of the time, you’re getting the same benefits as full-time employees but pro-rated.

For example, if your full-time colleague gets 28 days of annual leave and you work half the hours they do, you might only get 14 days. The best thing to do is to check with someone so you know exactly what you’re owed and don’t miss out!

Do I need to do a Self Assessment tax return?

Probably not. Although you’re not a full-time employee, you’ll probably still be PAYE, meaning your employer will take the amount of tax you owe from your salary and pay HMRC directly.

If you work pro rata but you’re also self-employed or not paying tax through PAYE, then you will need to let HMRC know what you’re earning, especially if it’s over the Personal Allowance threshold of £12,570.

FAQs

Q. Can you help me to maintain my own accounting records?

Of course we can – to make an appointment to go through your accounts in detail and check that you are receiving all the pro rata payments, benefits and taxes that you are entitled to, contact our team.

Q. Can you help me with my Self Assessment tax return?

Of course we can! For support with you accounts and tax return, simply contact our experts today and request an appointment! We look forward to working with you to take the stress out of tax returns!

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