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Payslip

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    #11
    Re: That payslip

    Thanks ASB

    The gross pay that you mention is actually £1,778.45 in my case. So would that mean i'm getting deduction less NI/tax then i should?

    I'm getting really confused now!

    The NI figures seem to look ok, just the tax seems a bit high at £358.11.

    Bug

    Comment


      #12
      Try this one then

      Oops, forgot about the £91 nil rate for the NI - so the NI figures you have are correct.

      From the other info you have given:-

      Pay in this FY:-

      4631 + 1778 =6409

      Tax paid in year = 804.39 + 358.11 = 1162.50

      If paid in week 9 (unlikely) then from the tables:-

      Free pay = 4745 * 9/52 = 821. Taxable = 5588

      61.2 (153 * 40%) + 1153.81 = 1215.01.

      But if they processed it as week 10 (depending on pay date).

      Free pay = 912. Taxable = 5497. Total tax due = 1209.34 - 46.32 (lower rate relief) = 1163.02,

      Looks like they have processed it in week 10 and deducted the right amount to me.....

      Comment


        #13
        Re: Try this one then

        So the rate of deductions is dependant and differs for each month that it is processed in?

        Its just that £800 of deductions seemed to be a bit steep from £2000 gross!

        Comment


          #14
          Re: Try this one then

          Well tax is currently about 42% of GDP so £800 out of £2000 does not seem that bad >:

          However this just goes to show that an Umbrella is not exactly a cheap alternative.

          Depending on contract terms you may find running via a limited company a lot cheaper. Now among PCG members the number who have been investigated currently stands at about 520 investigated and 2 found within the regulations. So purely on odds you have over 99.9% chance of being outside IR35. Being via an umbrella seems exceptionally expensive. Don't forget as well as the tax you are paying you have to pay a fee to the brolly. My own Limited Company costs a fraction of what you are paying in tax and I get to pick my training as well.

          Have you thought that Route35 and PCG membership with a limited company may be a more efficient investment. See www.pcg.org.uk

          Comment


            #15
            Not quite

            That figure is the total take by the government, so includes direct and indirect taxes.

            Being outside of IR35 is primarily an attitude of mind. If you form a limited company and treat it like a real business and work it like one, it's very easy to stay outside IR35. It must be if I've done it since the beginning.

            If you want to go down this route then the PCG is the place for you to learn all about it and have a helping hand along the route. Otherwise I wouldn't bother - just keep paying tax at silly marginal rates.

            Incidentally 2 out of 520 is 99.62% :hat

            Comment


              #16
              Re: Try the Liberty Accounts Payroll solution for free

              Do you have to pay extra to use the payroll in your product?

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