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

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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
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    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:
  • redballoon_2
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    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: 4,066 Forumite
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    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
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    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.
  • redballoon_2
    Options
    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
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    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!
  • redballoon_2
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    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
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    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: 46,055 Forumite
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    Not to mention trying to get out of paying 24 days holiday per year, SSP etc etc etc.
    Signature removed for peace of mind
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