80% pay rules

col81

We work in a sales environment on a commission only basis we average £40k per annum we have been told by our employer to go home and will be on the 80% or £2500 scheme. Is this £2500 tax and NI payable as usual what are the exact rules? Once the 3 months is up we expect to return to work

Neutrinno

Yes tax and NI is still payable. It's up to 80% of your gross income per month capped at £2,500. So if you gross income per month usually is £2,500 don't expect to receive 80% of that tax and NI free.

col81

How do they work it if commission based some months can be £5k gross others £1500 gross but averages out at £40k per annum gross

philng

col81 said:

How do they work it if commission based some months can be £5k gross others £1500 gross but averages out at £40k per annum gross

That seems to be the big question similar to those on variable pay & hours. Really should have been clarified by now.