We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

hubbys got new job but has to sort out paying own tax and NI

Hi all, As the title suggests we need help in paying tax and NI. He is going to get paid a weekly amount of £550.

I have sort of worked it out that if we drew out £400 it would leave ample per week to cover the tax and NI

I have found on a website a Direct Debit form to pay class 3 NI contributions. Does anyone know how much this would be per week/month?

I went on the take home salary calculator website and worked out that the tax should be £89.08 a week. How would my hubby pay this?

Thanks!
Make £10 a day challenge March 2013 £101.24 / £240 :j
WSC 10 March - £0 / £5
Debt £17,294 - 7th March

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    Hold on, hold on. Is your husband truely self employed? This is often a way for employers to escape their responsibilities. What are the terms of the contract, can your husband send someone else to do the work, can he pick and choose his hours, can he make a loss? If the answer is no to any of this, he is unlikely to be self employed. He needs to ring his local tax office for guidance. If he is found to be an employee, its the employer's responsibility to deduct tax and NIC.
    £705,000 raised by client groups in the past 18 mths :beer:
  • hi, no he can't choose his hours and it is him that will be doing the work. he's got set hours and days (mon-fri 8-30 till 5.30 and saturday 8.30 till 12)

    this is all new and the boss has contracts with huge clients and my hubby is doing the work for some of these clients based in a certain location.

    the boss will provide all materials and will provide training free of charge too. he has been told that he will get paid 2 weeks holiday pay as well.

    i had a feeling that he's doing it this way to escape the responsibilities of being an employer. the job was advertised on the job seekers diect website.
    Make £10 a day challenge March 2013 £101.24 / £240 :j
    WSC 10 March - £0 / £5
    Debt £17,294 - 7th March
  • chrisbur
    chrisbur Posts: 4,299 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If after you have sorted out if your husband is employed or self employed and he is self employed, he does not want to pay class 3 NI. He will need to pay class 2 and proberbly class 4
  • Horace
    Horace Posts: 14,426 Forumite
    I agree with what others have said, he needs to be sure that he is either employed or he is self employed.

    You then need to HMRC (revenue and customs) and they will talk about tax and national insurance payments.
    Semper in faeces profundum variat

    Make £5 a day challenge Oct 2014 £126.00/£155
    Make £5 a day challenge Nov 2014 £157.40/£150
    Make £10 a day challenge Dec 2014 £392.90/£310
  • ok thanks all for your help. i have been on the hrmc website and downloaded the forms for self employed just in case we need them.

    he is going to ask the boss guy tomorrow other questions too, so i will put this one on the list.

    thanks a lot.
    Make £10 a day challenge March 2013 £101.24 / £240 :j
    WSC 10 March - £0 / £5
    Debt £17,294 - 7th March
  • kr15snw
    kr15snw Posts: 2,264 Forumite
    Boyfriend is self employed and puts back 25% of his wages each month and this is ample to cover his tax bill at the end of the year. He pays about £12 a month (ISH) for his national insurance which I think is class 2 :)
    Green and White Barmy Army!
  • thanks kr15snw, thats helpful to know. just got to ask if he should be classed as self employed!

    he did set up a business last year but that never took off but we may explore putting it thought that. we will need to seek further help and guidance.

    thanks
    Make £10 a day challenge March 2013 £101.24 / £240 :j
    WSC 10 March - £0 / £5
    Debt £17,294 - 7th March
  • Conor_3
    Conor_3 Posts: 6,944 Forumite
    Judging by what you said, he's not self employed at all and the company he is working for is trying to get out of paying Employers NI which is 11% of the employees gross wage.
  • Savvy_Sue
    Savvy_Sue Posts: 47,888 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Not to mention trying to get out of paying 24 days holiday per year, SSP etc etc etc.
    Signature removed for peace of mind
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.6K Banking & Borrowing
  • 254.5K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.5K Work, Benefits & Business
  • 604.4K Mortgages, Homes & Bills
  • 178.6K Life & Family
  • 262K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.