Tax code Help

mattgriff88

my tax code is 647L/ Cumlative is this the correct tax code i should be on?
i get paid on a weekly basis and the reason i ask is on my last pay i earned £445.20 there was £36.90 employer national insurance deducted. £54.80 Tax deducted and £31.71 employee national insurance deducted. should i be paying this much?

thanks matt

dzug1

mattgriff88 wrote: »

my tax code is 647L/ Cumlative is this the correct tax code i should be on?
i get paid on a weekly basis and the reason i ask is on my last pay i earned £445.20 there was £36.90 employer national insurance deducted. £54.80 Tax deducted and £31.71 employee national insurance deducted. should i be paying this much?

thanks matt

That tax code is correct for most people.

You shouldn't be paying the £36.90 employer national insurance - your employer does this. Are you sure it's been deducted? It's normally just shown for information and accounting.

mattgriff88

ok thanks.
its definetley getting deducted. what happend was a couple of months ago the company i work for said we have to go self employed so they had us sign up to a company called t&l contracting umbrella support. i cant post links just type it in to google and you will see theyre website.

the company i work for send our pay to t&l then they deduct the tax from our wages and charge us £9.99 admin fee for doing this. what i can gather it saves the company thousands of pounds because they dont have to pay our NI. im not sure what to do to be honest as i havent really got a clue.

thanks matt

taxman3000

mattgriff88 wrote: »

ok thanks.
its definetley getting deducted. what happend was a couple of months ago the company i work for said we have to go self employed so they had us sign up to a company called t&l contracting umbrella support. i cant post links just type it in to google and you will see theyre website.

the company i work for send our pay to t&l then they deduct the tax from our wages and charge us £9.99 admin fee for doing this. what i can gather it saves the company thousands of pounds because they dont have to pay our NI. im not sure what to do to be honest as i havent really got a clue.

thanks matt

that in itself sounds a bit ropey, if you work for a copany but have to be self employed then the employer could possibly be avoiding paying there side of national insurance.

fengirl_2

And avoiding paying you holiday pay, sick pay, etc, as well as giving you no employment rights.

mattgriff88

the company i work for are a recruitment agency im so confused in this situation i dont know were i stand anyway. i was thinking of going down the tax office and asking theyre advice. we were on PAYE and then they made us go over to self employed. they basically said if you dont go over to self employed you want get work which is illegal in itself.

any advice would be much appreciated.

thanks matt

Pumpkinface_2

I think you need to speak to somebody specialising in employment rights more urgently than the tax office. You could try the CAB.

taxman3000

on the revenue website i believe there is an employment status indicator tool, which by answering a few questions it would tell you if you should be employed or self employed, if not an hmrc inspector would need to make a decision.

00ec25

taxman3000 wrote: »

on the revenue website i believe there is an employment status indicator tool, which by answering a few questions it would tell you if you should be employed or self employed, if not an hmrc inspector would need to make a decision.

I agree, from the information the OP has provided it sounds like you would fail the test of "badges of self empolyment", if you only work for one client and take directions from them as to what work you do, where and when you do it, you are not self employed.

however its unlikely your company would make such a serious error as they will them be liable for employers NI anyway so have gained nothing. There must be a bit more to this story.


To the OP
the tax figures you paid are actually a bit low according to this online calculator: http://www.listentotaxman.com/index.php?c=1&yr=2009&age=0&add=0&code=647&pension=0&time=52&ingr=445.2&vw%5B%5D=wk

Wage Summary WeeklyGross Pay £445.20Tax free Allowances £124.52Total taxable£320.68Tax due£64.14National Insurance£36.88Total Deductions £101.02Net Wage£344.18Employers NI £42.92

mattgriff88

I definetley need to get advice about this situation.

the company i work for are a railway recruitment company theyre a massive company employing thousands of people. we was all happy on PAYE until they told us we had to sign up to the t&l company and go self employed.
when it all come about they basically said if you dont go self emplyed we will not give you no work as its is a recruitment agency they can easily do this although its illegal they will find a way.
the way our holiday pay works is say i earned £400 you can have a certain % taken out each week of your own wages and they will then pay you it when you take your holidays so really your paying for your own holidays out of the money you earned just they keep it for you.
thats why no one ever does it you might aswell just save it yourself.
is there anyway i could go back on PAYE as it was much easier. who would i have to go to for advice about this?
every one is just taking all this at the moment as we are afraid to lose any work that is available.
the only benifit of going self employed and this is what they told us at the time is we can put reciepts in for our expences like food and diesel etc.

All of us are just so confused about this and we need some advice.

Matt