Can the OR get your figures wrong?

Izabel

Can the OR get your figures wrong?

I’ve asked questions before about tax deductions and thanks to everyone who’s advised but I don’t think it’s a tax issue, I’ll explain

When we went BR in June my partner was working very long hours 7 days a week to try and make ends meet, they didn’t. During the first 3 months his income went down significantly and although they had already agreed an SOA and IPA I asked them to re-look at the figures given the drop in income.

Our SOA was a total of £1801 and they then said they were using an average of £1963 for his wage, £294 for tax repayments and £91 for IPA.


Every month we seem to struggle and I was beginning to think we are really stupid to have already gone BR and still no good with money so I started to look at what he was earning and the figures they were using.

I’ve calculated the figures myself and would like a second or third opinion. I’ve used the same 3 wage slips they’ve had for the example but there isn’t much different if I used the last 6 months.

Here goes –

(All Earned figure include any overtime)

Jun -
Earned £1916.67
TAX/NI £455.60
CTC £42.00
Take Home £1503.07

Jul -
Earned £2395.84
TAX/NI £604.11
CTC £42.00
Take Home £1833.73

Aug -
Earned £2100.91
TAX/NI £475 (NT Tax code so agreed £294)
CTC £42.00
Take Home £1667.91

Average -
Earned £2137.80
TAX/NI £511.57
CTC £42.00
Take Home £1668.23

This is very short of the SOA / IPA etc that was agreed.

Have I worked this out correctly??????

Can I challenge there working out????

Is there something I'm not thinking about????

Thank you in advance, this is driving me made!

Izabel

Is £1668.23 the figure the SOA / IPA should be based on?

DON79

Hi Izabel, you can challenge the IPA and ask them to send you a breakdown of how they have worked it out. and you can ask for it to be reviewed as well. I am not clued up on how they work them out am afraid but if you ask for the breakdown and then you can check their figures to see how they are working it out.

Izabel

Thank you .... any other thoughts?

startagain_2

Izabel,

Before your IPA was set, what payslips did the OR ask for?
Are these payslips what the IPA are based on?
Like DON79 has said already, you need to ask for a breakdown of the calculation, what they are basing it on, and point out the difference between their average and your average.
SA

Izabel

I've used the same dates as they did, June, July & August to work it out.

I will ask for a breakdown but have asked when we agreed everything back in Sept and didn't get anything just a comment about being difficult!

startagain_2

Izabel,
Looking at this with a fresh pair of eyes this morning I am wondering what your partners income is now, has it dropped significantly since these 3 payslips?
If so, have you notified the OR of a change in income?
Are you sure that they didn't disallow or reduce any of the amounts on your outgoings?
Is it worth posting your SOA on here for us to have a look to see if there is anything glaring on there?
SA

Izabel

No not really, it has varied but seems to equal itself out over a few months. They worked out the average over the 3 months listed above was £1963, not sure how I don't get the same figure and I assumed that what was what they thought was his take home pay.

I make the average over the past 6 months £2140 before Tax/NI deduction and after I make it £1688 (deducted Tax/NI and added CTC) That's what’s in the bank. £275 different from what they've worked out.

SOA
Rent £500
Council Tax £132
Gas / Elec £100
Water £45
Food £480
Car Ins £37
Home Ins £15
TV Licence £11
Telephone £40
Mobile £20
Holiday £60
Hairdressing £26
Car Maintenance £25
Dent/Presc/Opt £40
Clothing £120
Petrol £150


Total £1801

2 Adults and 2 Children.



Somethings where changed at the first interview and then again in further telephone conversations but I feel confident I've got an upto date copy.


I will write asking for a copy from them, again! Just so I know I'm 100% before I query anything.



I am right in assuming they work it out on what you take home after all deductions?

startagain_2

Hi again Izabel,

Well, it looks to me like your IPA has been worked out on the gross pay and not the net pay. There is no way that you have got a surplus on these figures, I am not sure why you have got an IPA?
Did you agree it at the time...... this is why you are short each month.
The tax figure is correct and if he is on a Nil tax code that is as it should be.
It is the IPA that needs looking at.... and quickly!

HTH
SA

Izabel

We did agree, but to be honest I would of agreed to anything they said ... I found the whole process very scary and took it as red they knew best. However I have a better understanding thanks to this site and won't just let it slide.

Am I best to ask for proof before I challenge the IPA?

Izabel

Oh and thanks, I'm glad someone else thinks something isn't right, for the past 3 or so months I thought I was going mad, couldn't understand why we had no money, still!

I had the figures in my head from the SOA and they just don't make what we have in the bank but it's taken my a few weeks to work out where it went wrong, I thought it was us.