I need help please

oldtractor

Firstly I may have put this on the wrong board, if so I apologize
My husband started work for an agency a few weeks ago, he is a HGV lorry driver.
He gets paid £8.50 an hour and the hours vary.
the agency pays him £x per week and deducts income tax national insurance and pension payment. it also does something called Salary Adjust/ for example ,[ rough figures,rounded up no pence] last week he was paid £389 gross, salary adjust £100, pension £1, NI£16, Tax £58. Under the column "Benefits/Expenses" it says "Travel Scheme" £80
His tax code is BR
he has paid a lot of tax and not a lot of NI
Is this right? when I run £389 in a tax calculator it says he should receive £321 but he got £290 net

purdyoaten

Firstly - a code of BR means that everything is taxed at 20% with no personal allowances. The employer has assumed that he has another job (although, even then, the code should be 0T). This employer appears to have taxed the gross salary after taking off the adjustment (whatever that is). Did your husband hand in a P45? If he had none he should have completed a form P46.

The NI is fine. the pesnion contribution of £1 is another mystery.

xylophone

Contact HMRC.
http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM

chrisbur

Both tax and NI have been calculated on a gross pay of £289.
Do you mean he got £290 net ie after deductions rather than gross as you say? If that is the case it appears to me that tax and NI have been done on the figure of £289 ie after deducting the £100 and the £80 has been added to net pay as a repayment of the £100 (after tax) If this is the case (if you give exact figures can better check) then it would appear to be some sort of "expenses arrangement" which reduces the NI cost.

As advised needs to sort out the BR tax code sounds like another employer who cannot be bothered with getting the details required to use the emergency tax code, and a few years out of date on the tax code procedures.

oldtractor

Thank you all. Yes it should have read £290 net. have edited it now. Sorry, my mistake, he is on BR tax code. Have phoned him and he is going to ring the works office to get it sorted.
Still dont understand why they do a Salary Adjustment then pay approx 4/5 of it back, however this does decrease NI contributions, Am now worried they are not enough re state pension entitlement

agrinnall

As long as he's paying some NI (or earning enough to have NI credits applied) then that's all that's needed to earn state pension entitlement, the amount paid is irrelevant,

Delphina

When he started, did he hand in his P45 from the previous job to the current employer (the agency)? If yes, they should have carried on using the code the previous employer used...The code should have been 1000L or lower.

There is NOTHING wrong with telling the agency that they are over-taxing you (your husband). Point out about the code on P45. If you have no P45, ask the agency to fill in a P46 and they must tick statement A. That should instantly put your husband on 1000L (week1/month1). He should get in-year refunds through his wages as soon as 1000L CUMULATIVE is operated (ie when HMRC has processed the P45 or P46 and issued tax code to the agency). Good luck.