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Universal Credit
Comments
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SkyeKnight wrote: »All the information I've seen says it's 65% withdrawal of income after tax/NI.
If you are below the threshold to pay income tax then your withdrawal rate will be 65% as you said.
If you pay tax at 20% and NI at 12%, 65% of the remainder (ie. 100-20-12= 68) is 44.2%. Making a total marginal income withdrawal rate of 76.2% as HappyMJ said.
My apologies, yes. Pardon the brain freeze!0 -
LHA is far simpler than the preceeding system was. LHA is based on the household to establish the room rate, which has no LA based criteria; then the Broad Rental Market Area rent rates, which are far wider than the Rent Officer areas.
LHA was "made" for national administration and the efficiency of scale it can deliver. :cool:
Well, this is as maybe. But was it made for a real-time merge with PAYE, administered by inexperienced staff?0 -
Are you sure? The family element is £545 and the child element is £2,555 per child per year (increasing to £2,690 in April). They won't get working tax credits as they don't work. That is £631.50 every 4 weeks for 3 kids (increasing to £662.70 in April).marywooyeah wrote: »we've lost our tax credits because we "earn too much" because we both work full time. except all my friends who don't work have more money than us from all the benefits they get, one of my firends is a single mum to 3 kids and gets £1400 per month! :eek:
If they have more money than you maybe you should look at what income and expenses you have. The may just appear to have more money than you but it may just be an illusion.
Child tax credits and working tax credits can be paid to a couple who both work full time.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Well, this is as maybe. But was it made for a real-time merge with PAYE, administered by inexperienced staff?
Sixer this is was bothers me and I have said it at various meeting with HMRC and my boss was part of the consultation panel. They are relying on the fact that all employers are brilliant at payroll and indeed prioritise payroll. Which I know many don't! In my job people come to me when basically they are already in a mess or been fined and often the payroll has been done incorrectly. Small employers are the biggest worry in my opinion, payroll is just not their priority.
The example I used to HMRC, Fred Bloggs the builder is great at building houses but not payroll, he might not even have a computer. Fred normally scribbles down in his diary what he has paid his lads each week and now and then when he pops into his accountant they put those figures into a payroll. Now Fred is going to have to learn how to do this himself and send the info each time he pays his lads, or pay his accountant to do it!
Also people who employ carers whose priority is caring for their sick relative, they are not payroll people.
Charities like who I work with, all passionate about a cause but not a clue about PAYE.
Previously all this is sorted once a Year now it has to be done monthly and if it is wrong it will have devastating effects on reciprients of UC....... Time for a career change I think!0 -
But they need to work out tax and NI each pay period. Fred Bloggs isn't going to do that on the back of a fag packet if he doesn't understand payroll, surely!Deleted_User wrote: »Sixer this is was bothers me and I have said it at various meeting with HMRC and my boss was part of the consultation panel. They are relying on the fact that all employers are brilliant at payroll and indeed prioritise payroll. Which I know many don't! In my job people come to me when basically they are already in a mess or been fined and often the payroll has been done incorrectly. Small employers are the biggest worry in my opinion, payroll is just not their priority.
The example I used to HMRC, Fred Bloggs the builder is great at building houses but not payroll, he might not even have a computer. Fred normally scribbles down in his diary what he has paid his lads each week and now and then when he pops into his accountant they put those figures into a payroll. Now Fred is going to have to learn how to do this himself and send the info each time he pays his lads, or pay his accountant to do it!
Also people who employ carers whose priority is caring for their sick relative, they are not payroll people.
Charities like who I work with, all passionate about a cause but not a clue about PAYE.
Previously all this is sorted once a Year now it has to be done monthly and if it is wrong it will have devastating effects on reciprients of UC....... Time for a career change I think!
I'd have thought if they can get tax & NI right every pay period, whether manually or using a payroll application, telling HMRC the payments each month would be child's play in comparison. It could even be built into the payroll application.
Not that I expect this to be plain sailing BTW, all govt IT projects tend to be a disaster at least to start with. But the way tax credits work is out of the dark ages - having to tell HMRC manually something they should already know (for people in PAYE) as they're collecting your taxes! Then (for a lot of people) having to tell them twice at the end of the year, through self assessment and tax credits renewals. And having to tell the council as well if claiming HB/CTB.0 -
But they need to work out tax and NI each pay period. Fred Bloggs isn't going to do that on the back of a fag packet if he doesn't understand payroll, surely!
I'd have thought if they can get tax & NI right every pay period, whether manually or using a payroll application, telling HMRC the payments each month would be child's play in comparison. It could even be built into the payroll application.
.
Believe me there are plenty of Fred Bloggs still out there who do exactly that! Or who do rough PAYE calcs like, want to pay £250 a week so give them £200 in there hand and sort out the difference later, they don't bother with payslips!
There are still millions of employers who CAN NOT get PAYE right,
There are small employers who do not currently calculate PAYE as pay below the limits now have to submit these details each Month.
There are small employers who do not even know how to turn on a PC.
I had someone walk in my office last week needing payroll backdating to May, again paid on estimates.
What about people who work in Charities and sometimes don't get paid for a few Months whilst funding comes in then gets a lump sum?
Also large employers who pay people for months after they have left....
I know what am pointing out is more RTI than Universal Credit but these are just some of the issues we have raised with HMRC.
The bottom line is for me PAYE is not every employers priority, despite fines and prison threats... they don't care.
This will have a devasting effect on vunerable peoples Universal Credits, but employers won't care about that either....0 -
Maybe this is what's needed to give them a kick up the a*se thenDeleted_User wrote: »Believe me there are plenty of Fred Bloggs still out there who do exactly that! Or who do rough PAYE calcs like, want to pay £250 a week so give them £200 in there hand and sort out the difference later, they don't bother with payslips!
There are still millions of employers who CAN NOT get PAYE right,
There are small employers who do not currently calculate PAYE as pay below the limits now have to submit these details each Month.
There are small employers who do not even know how to turn on a PC.
I had someone walk in my office last week needing payroll backdating to May, again paid on estimates.
What about people who work in Charities and sometimes don't get paid for a few Months whilst funding comes in then gets a lump sum?
Also large employers who pay people for months after they have left....
I know what am pointing out is more RTI than Universal Credit but these are just some of the issues we have raised with HMRC.
The bottom line is for me PAYE is not every employers priority, despite fines and prison threats... they don't care.
This will have a devasting effect on vunerable peoples Universal Credits, but employers won't care about that either....
Wonder how many people are missing out on NI credits and so state pension entitlement because their employer is not getting NI right? Employees might not notice this for decades. And they might not care if they're paying the right tax, but they sure will care if their benefits stop!! 0 -
Are you sure? The family element is £545 and the child element is £2,555 per child per year (increasing to £2,690 in April). They won't get working tax credits as they don't work. That is £631.50 every 4 weeks for 3 kids (increasing to £662.70 in April).
If they have more money than you maybe you should look at what income and expenses you have. The may just appear to have more money than you but it may just be an illusion.
Child tax credits and working tax credits can be paid to a couple who both work full time.
I didn't say she gets 1400 in tax credits, isaid benefits. The sum of all her benefits each month equals 1400. My husband and I work flat out paying everything ourselves and saving to buy a house whilst paying 115 a week out in childcare, all our bills are thelowest we can get and I work hard to keep other costs down whilst watching our friends sitting on their backsides all day but having foreign holidays sometimes more than once a year. We are not entitled to tax credits as we earn over the threshold. Hope this clarifies matters for you.0 -
If you can't earn more than your friend on benefits then join them and stop being jealous. £1,400 per month is not that much. It sounds like a lot but it's income support/jsa, council tax benefit, housing benefit, child benefit, child tax credits. A family that earns £1,400 a month after tax would be entitled to some of that in benefits. It does not reduce exactly pound for pound.marywooyeah wrote: »I didn't say she gets 1400 in tax credits, isaid benefits. The sum of all her benefits each month equals 1400. My husband and I work flat out paying everything ourselves and saving to buy a house whilst paying 115 a week out in childcare, all our bills are thelowest we can get and I work hard to keep other costs down whilst watching our friends sitting on their backsides all day but having foreign holidays sometimes more than once a year. We are not entitled to tax credits as we earn over the threshold. Hope this clarifies matters for you.:footie: Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0
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