Noob question >>

*Kat*

my friend did some shifts for me at work, but they couldn't pay him cause there's no overtime, so they paid me and I have to give him the money....

So he did :

(3.75*7.63)*3 = 85.84
(7.63*1.5) *7 = 80.11

Total = 165.95

How do I work out what I was taxed/NI on that? Is the norm 20% tax on that and then what is NI? xx

Tax = 33.19 (20%)?

*Kat*

huh? lol, he does work there yeah, we tried to do a shift swap but they wouldn't let us because the store doesnt have any overtime, so it was authorised that he can work the shift for me and I take the £££ out of my wages and give it to him?

serious_saver

Hi *Kat*

It's pretty tricky to know without actually seeing you pay slip as it will depend on you tax code, NI category etc. I think your employer has done something very dubious!

However you could try doing this.

Work out the percentage that you have paid all together
Total deductions ÷ total untaxed pay x 100 = % of pay deducted

For example if you’ve earned £200 and have been taxed £62 you could work it out like this.

62 ÷ 200 x 100 = 31%

Once you’ve done this you can figure out how much to deduct from the pay for the work he’s done based on this percentage.

His pay ÷ 100 x the percentage = the amount to deduct from his pay

***EDIT***

You should also check you payslip to see if it states what NI category you are in. This will decide what percentage you pay. Category A for example is 11%

http://www.hmrc.gov.uk/helpsheets/e12.pdf

Tax is not always 20%. Check that you're on the right tax band with the tax band checker tool http://www.moneysavingexpert.com/family/check-tax-code

chrismac1

My suggestion is as follows:

Identify how much of your gross pay on your slip is down to your friend's hours. Deduct this from the gross pay on your payslip, this leaves you with the gross pay which is down to your hours.

Now go to one of the many online net pay calculators and key in your gross, it will tell you what Net Pay you would have ended up with if your friend had not become involved.

This net pay figure is what you should still have once you've paid your friend, so pay your friend the difference. You are now no better or worse off than if your friend had done no hours.

Sambucus_Nigra

Ahem

You are now an employer. Congratulations.

He is now self-employed and would need to register as such with HMRC. Congratulations.

See; it's not as simple as it looks.

In the words of the pub landlord; 'You didn't think it through did you?'

*Kat*

Sambucus_Nigra wrote: »

Ahem

You are now an employer. Congratulations.

He is now self-employed and would need to register as such with HMRC. Congratulations.

See; it's not as simple as it looks.

In the words of the pub landlord; 'You didn't think it through did you?'

:money: *sigh*...are you trying to be helpful?

Sambucus_Nigra

*Kat* wrote: »

:money: *sigh*...are you trying to be helpful?

I don't think you have realised the legal implications of this have you!

*Kat*

Why is it illegal? I'm pretty sure a manager would've said "we can't do that" or something.

Sambucus_Nigra

For a start, your chum won't have declared tax on the income that he has earned.

For a second, he has done work and you have paid him for it.

It's not illegal. It just has implications that change things. Don't do it if you don't understand the full implications. Otherwise, we'd all send someone else in to do our job.....but that would make us employers.

*Kat*

But...the tax has already been paid? No?

p00hsticks

*Kat* wrote: »

But...the tax has already been paid? No?

Yes, but by you rather than him - if your company had paid him directly he might have had to pay a different amount to you depending on his circumstances.

And you've made and been credited with some NI contributions when in fact it was him who did the work.