CIS Payments

jcb208

Hi Can any one tell me the formular for working out gross pay.ie Pay is 600 less 20% tax which makes it £480.But as I only have the net payments amount on my bank statments I need to work out what the gross was before the 20% deduction .Thanks

DCodd

jcb208 wrote: »

Hi Can any one tell me the formular for working out gross pay.ie Pay is 600 less 20% tax which makes it £480.But as I only have the net payments amount on my bank statments I need to work out what the gross was before the 20% deduction .Thanks

Who ever is paying you MUST send you a Contractor Monthly Statement. This will show the Gross amount, how much is Materials and how much is liable for deduction along with the total amount they have deducted. These documents sre what you use to offset the amount of tax already deducted from the amount of tax you will pay on your self assessment.

However - in the case above you would divide the net amount by the percentage that the net amount relates to. I.e. 480.00 / 0.8 = 600.00 - where £480.00 is the amount on your bank account and 0.8 relates to the 80% of the £600.00 that the £480.00 is.

Edit - The above will not work if there are materials included within your invoice.

nomunnofun

Yes - the materials does complicate the issue.

Formula:

Net payment minus amount for materials

divided by 4 and then multiplied by 5

add amount for materials




so - if you received £510 of which £30 was for materials -

510-30 = 480

480 *5/4 = 600

600 + 30 = 630