Child Benefit/Pension/Pay slip confusions

lolamancity

Hi, im hoping someone can help. I've been very conscious of my partners income affecting my child benefit (i earn nothing at present so i need it!), so for the past few months we've been keeping an eye on it and adjusting pension contributions to try and avoid going over the £50k threshold , which is difficult as his monthly wage varies quite a lot, and he also has a P11D figure to add onto it at year end due to his [compulsory] work van.


My problem is that i thought we were doing ok to keep it under, but on looking at this months payslip, we're going over by at least £2k. Which is annoying as we've bumped the pension up to more than we wanted...but it also got me thinking that i'm miscalculating this somehow, and it could be to do with his pension contributions specifically.



Could anyone confirm i'm along the right lines with this by looking at his pay slip? Why are his pension contributions in the earnings coloumn and not the deductions coloumn? i worked in HR for 12 years and can't ever remember seeing any payslip laid out like this, but then again, i've never seen a more complicated payslip! Does this mean i'm basing his adjusted net pay on a figure that isn't taking pension contributions into account?


a further note is that a lot of his colleagues have gone through one of these shark tax rebate companies and have received between £6-£8k rebates, but nobody knows why, as the shark company havent told them, and furthermore, they want them to refer their other work colleagues to them so they can get a cut of their potential rebates too (i told my partner not to touch it with a bargepole)... could this be something to do with the way the pension contributions are deducated against tax?


I'd really appreciate any help on this, as i could do with making a big adjustment to the final pension deduction in March before the end of the tax year to avoid the child benefit reprocussions!


Ive attached a link of the payslip but not sure if itll work!



https://drive.google.com/file/d/0B-Xsb27-7EvGVGkwb3pOeXIxWnNfc20tYmxEdVA0Qndpbmkw/view?usp=sharing


many thanks in advance

Dazed_and_confused

Cannot view the payslip.

Can you post all the entries from it?

I find it hard to believe his colleagues have no idea what the tax refunds are in relation to. They must have received calculations showing how the refunds were calculated and presumably signed forms with the company in the first place.

jimmo

Dazed_and_confused wrote: »

Cannot view the payslip.

Can you post all the entries from it?

Click on + at the bottom of the screen.


No idea what most of the entries in the earnings column mean but the pension contributions show a minus figure which is correct.

lolamancity

Ah, that's annoying. I'll give it a go:


Earnings;


Basic Pay- 2,136.98
Call out wk 1 121.20
Call out wk 3 1,060.05
Hours x 1.33 W3 (units 0.50 rate 17.2599) 8.63
Pension 1 -414.20
Pay supplement 542.31
PensionAllow 130.05
Radius wk2 (units 2.75 rate 12.9774) 35.69
Radius wk3 (units 2.75 rate 12.9774) 107.07


Total (Hours 11.50) Earnings 3,727.78


Deductions


Tax (code 798T) 609.50
NI (cat A) 363.09


Total Deductions 972.89


Running Totals


Tax year to Date


Gross Pay 44,087.40
Taxable Pay 44,087.40
Tax 8,380.60


This Employment


Gross Pay 44,087.40
Taxable Pay 44,087.40
Tax 8,380.60
Emp NI 4,038.50
Emp'r NI 5,018.44


Accumulations


Ers Pension 1 2,309.75
Emplr Pension 1 2,107.57




Amount Paid


Earnings 3,727.78
Deductions 972,89


NET Pay 2,754.89


Amount Paid 2,754.89


Employers Contributions


NI (A) 417.56
Ers Pension 207.10
Emplr Pension 414.20


Annual Salary: 25,643.81


Amount Paid: 2,754.89




Phew.


His P11D for last tax year was £3,800


This tax rebate thing is causing arguements tbh. He swears that none of his colleagues have been told what the rebate is for. They were asked to provide payslips and P60 and P11D for the last 4 years, signed a form to give the company permission to act on their behalf, then a few weeks later received cheques from HMRC with no explanation and a few of them aren't paying tax for the rest of the tax year (which sounds odd to me). None of them are particularly smart, but they are all saying they don't know what it's for. I've spent many hours googling (to absolutely no avail other than possibly uniform allowance but its definitely not worth 6k+!) to try and stop my other half going through this company himself, trying to find out what he could apply for himself rather than give this company a huge chunk (25% i think) of anything he may be entitled to. He's getting annoyed with me now because not only have i persuaded him not to do as all his mates have done (therefore "theyre getting thousands and i'm getting nowt") i've also told him his income may have tipped us over the child benefit earnings threshold, and he's even more annoyed now!

lolamancity

jimmo wrote: »

Click on + at the bottom of the screen.


No idea what most of the entries in the earnings column mean but the pension contributions show a minus figure which is correct.

Ahh so thats definitely right then? i just thought it odd that it wasn't in the deductions coloumn as i've only ever seen it there as far as i can remember. There's also an entry for 'pension allowance' that's not a minus figure and i have not got a clue what that is.


So am i right in concluding that his gross pay is the figure that that plus the P11D figure equal the amount that child benefit eligibility is based on? Looks like i've ballsed up not adjusting his pension contributions sooner

chrisbur

This appears to be a salary sacrifice pension.

SavingLibra

I have done this myself


and I think your numbers are fine


annual total gross pay , plus p11D minus annual pension payments you have made, needs to be below 50K or you will pay the tax charge on some of you child benefit.

I wanted to link to .gov child benefit tax calculator but I cant because I'm new here

chrisbur

How were the additional pension payments made, what is the P11D figure likely to be.
You have the taxable gross figure up to month 11 from the payslip 44,087.40

chrisbur

Regarding the van might be worth having a look here
https://www.businessvans.co.uk/van-tax/do-i-need-to-pay-tax-on-a-company-van/

https://www.parkers.co.uk/company-cars/what-is-bik/

lolamancity

chrisbur wrote: »

How were the additional pension payments made, what is the P11D figure likely to be.
You have the taxable gross figure up to month 11 from the payslip 44,087.40

The last 3 months he put his pension contributions up to approx £450 per month, on the payslip it's under the earnings coloumn as a minus figure.


P11D is likely to be £3800 plus whatever it's increased by this year (i guessed approx £200 going off other years increases).


his March wage is likely to be similar to Feb, so £3800 before tax and NI - with that and that P11D figure, i've now realised his total for the tax year is going to be £52000 approx. Frustrating!

lolamancity

chrisbur wrote: »

Regarding the van might be worth having a look here
https://www.businessvans.co.uk/van-tax/do-i-need-to-pay-tax-on-a-company-van/

https://www.parkers.co.uk/company-cars/what-is-bik/

Thanks Chris.


I think i've looked at those pages before, and as far as i can see, he's taxed correctly. However...i really can't help but think that these massive tax rebates his colleagues are getting through this shark rebate company are something to do with the company van. it's the only thing that is worth that amount of money. At first i thought it might have been something to do with pension contributions, but some of them pay peanuts into a pension unlike my partner and have still received thousands in rebate. I also thought it might be to do with the fact that most of their pay is 20% tax but theres a small part at 40% and this might affect tax on the van, or something to do with pensions.



In the past few years, the P11D calculations that have been sent to the employees from the employer, have changed slightly, i don't know why, or whether this is something to do with tax.



Last year, it looked like:


G- Vans


Exclusive use - 306 days from 06/04/17) Gross amount - £2707.89
Fuel charge (Ford Transit Cust 290 L1 Diesel FWD 2012) - £511.40
Exclusive use - 59 days from 06/02/18) - £522.11
Fuel charge (Ford transit etc etc) £98.60


P11D benefits statement 2017/2018 £3,840.00


the year before was laid out as above but with just two lines, for exclusive use 365 days at £3170 and fuel charge £598 - total £3768






maybe its nothing but why is there two lines of date ranges on this tax years P11D.



Also, the only thing one of his colleagues has mentioned he heard in conversation about reasons for rebate with this shark rebate company is something about storing your van at home, which sounds ridiculous to me, plus i cant find anything online about that having any bearing on anything at all, let alone tax. At this point i'm guessing they might have applied for a rebate based on something that it's incorrect (ie a lie!). The bottom line is, they all use company branded and provided vans for work, they don't have set work places and move around to different jobs each day, they all use their vans out of work time for personal use, and fuel is included for both work and personal use using a fuel card. I can't see anything to the contrary to that on the P11D!