OH's SOA, please help!

belfastgirl23

According to this handy little calculator http://www.listentotaxman.com/ his income on £22k should be net £1393 per month (I checked it with mine and it seems to be accurate). I can't see how over £300 a month would go towards a pension scheme. I think your instinct is right that there is a whopping overpayment going on here. I'd say have a look at the inland revenue website, I do my DHs taxes (self employed) and I find that their website really does try to help - which was most unexpected cos I'd always thought the taxman was the devil. Also he should phone his local office if it is wrong and see about getting a rebate, again I had to do this as a student and they couldn't have been more helpful. Wouldn't it be fantastic to get provident paid off. I just cannot believe that this is legal :eek: I am truly horrified by it. And frankly Welcome aren't that much better!!

Lots of luck. In his shoes I have to say I would be ebaying anything that wasn't nailed down to get the extortionists off my back...

**edit** in fact this might answer some of the questions http://www.hmrc.gov.uk/faqs/general.htm#1

Lucy1982_2

Thank's for this. He filled in a form from the TAx office regarding his tax payments (even they seem to think that he has paid to much!) I will get him to call about his tax code, it's a 5**L code from what I remember.

I am going to teach him to enay stuff, although he will have to use my camera to do it, so I will probably help most of the time. He has loads of CD etc he wants to get rid of so I'll help him Amazon them. Any cash he makes I will get him to pay off his debt's, I've told him that this is how it is going to be but I will help as much as I can.

dfw844

Hi, I’ve just read your thread. Good luck with everything!

I do payroll at work. I can show you how to work out how much he should pay in tax.

Everyone is entitled to earn something without any tax – your tax-free allowance. Then, the first part of your income is taxed at 10% (known as starting rate relief). After a certain level, everything is taxed and 22% (and then 40% if you earn enough to move up into the next bracket).

First, take his taxcode and add a 5, as this is your tax-free allowance. This year the basic allowance for most people is £5225 (tax code 522L). This is amount he can earn without paying any tax.

The next £2,230 he earns is taxable at 10%. Anything he earns from £2,231 – £34,600 is taxable at 22%

The easiest way to do it is yearly. So, if he earns £22,000:

Gross Salary: 22,000
Tax free allowance: - 5,225 No tax.
Taxable income: 16,775
Income taxed at 10% - 2,230 Tax (2230 x 10%) £ 223
Remaining taxable at 22% 14,545 Tax (14545 x 22%) +£3199.90
TOTAL TAX (for the year) £3422.90

So he should be paying about £66 a week in tax – if he is on the standard tax code of 522L. If it is anything else ending in L, just add a 5 on and substitute it for £5,225 in the above calculation. If it ends in any other letter, it is a special case and subject to different rules.

Then there are his national insurance contributions. This is just a flat rate of 11% on all income over £87 a week.

So if he earns £423 a week (£22,000 divided by 52), then he pays:
423 – 87 = 336 @ 11% = £36.96

So his payslip (before any mention of Council Tax repayments) should read something like this:

Gross income: £423
PAYE Tax: £66
NICs: £37
Net Pay: £320


The rates and allowances are listed here http://www.hmrc.gov.uk/rates/index.htm

Hope you find this helpful! Feel free to ask if this doesn’t make sense (so hard to explain over a computer) or PM me if you want to go into more detail.

bobbadog

Hey Lucy! Make sure you check out CEX.co.uk and Amazon as well as eBay - I usually make a little more selling CD's and DVD's via those than on eBay x

Lucy1982_2

Thanks for that bit on Tax. I rang him earlier and said it might be worth speaking to payroll. It might be right, I just couldn't work it out!

I'll let you know how he gets on. I'm just doing some ebaying myself and it take so long with dial up!!

skint_spice

belfastgirl23 wrote: »

I can't see how over £300 a month would go towards a pension scheme.

I didn't mean £300 would be going towards a pension scheme but could easily be £100 going there and £250 towards council tax arrears as this is being taken off at source. Hopefully it'll all be clear when he gets his payslips together. And if some of it is council tax arrears hopefully this will be caught up with soon and stop!

Lucy1982_2

I think about £120 is going towards council tax arrears, maybe a bit more, hopefully he will have had a chance to speak to someone in payroll and will know what is happening.

mhe

The most important thing is he has had his LBM and has told you about his debt - some people try to hide their debt from loved ones.
Try going to a car boot sale to clear some things like books, old clothes etc that he no longer uses.
Meal planners for a week or two cut the cost of a food bill.
Could he get a loan at a cheaper rate to pay off Provident? Even if he kept the monthly repayment at near enough the same amount it would be paid off more quickly.
I too think his wages are incorrect and need to be checked.
Good luck to you both.

Lucy1982_2

Thanks

I very much doubt that he would be able to get another loan, he has defaults so his rating is going to be terrible! We will get there and it will be ok. Apparently his wages are right, but he is on £20,500 per annum not £22,000. See what I am up against!!! He doesn't even know what he earns a year!!!!

It's going to be really hard.

skint_spice

Lucy1982 wrote: »

Apparently his wages are right, but he is on £20,500 per annum not £22,000. See what I am up against!!! He doesn't even know what he earns a year!!!!

I'm sorry Lucy but that did make me laugh! at least he's faced up to things now and he knows what his incoming and outgoing expenses are - thank god he's got you to help him.:D