How much tax and N.I should I have been paid?

debbie2326

Hi all, only my 2nd post but think I am in right place?
Basically the woman who does the tax at where I work, is not the nicest of people!!
In my March pay instead of paying me £288.00 in [FONT=&quot]commission[/FONT] she only paid me £2.88.. She was very rude and said I would maybe get a chq this week! I was really annoyed and upset so I complained to my boss & I received a BACS payment today but it was for only £190.00.

My complaint is she is telling me that I have to make tax con at 22% and NI at 11% I queried this with her and she told me that if it had been included in my March pay it would of paid at the same 33% ?? which I find to be too high. Basically a 3rd of my pay.

My gross pay is £944.16 + £288.00 commision = £1232.16
I went on a payslip checker so my tax should of been £156.56 and NI £87.87
a net of £987.73
As it stands I was paid the 2.88 in original pay so my commission owed is stood at £285.12. My question is why have I been taxed/NI at just over £95 making my payslip £190?? I believe it should of been around £57 paid in contributions, a wage slip of £228.

Please can anyone help, am I wrong?? I know it is not very much difference around £38 but she has been just plain rude and [FONT=&quot]condescending[/FONT].. My pay is absolute rubbish as it is and cannot afford to live!!
Please put my mind at ease :mad: has given me a headache lol, but its the principle of it. I will hold my hands high if I'm wrong. Thanks all..Love this site x

CarolynH

Hi Debbie,
How much (roughly) have you had each month since April 07? Net and Gross (should be on your last wage slip).

binnie

Hi Debbie

Not sure if I am right, but I think you get taxed more on commission than the basic wage.
I once left a job and they owed me commission only, I got taxed loads more than I expected.

Good luck in sorting it and hope others can help.

xx

LilacPixie

debbie2326 wrote: »

Hi all, only my 2nd post but think I am in right place?
Basically the woman who does the tax at where I work, is not the nicest of people!!
In my March pay instead of paying me £288.00 in [FONT=&quot]commission[/FONT] she only paid me £2.88.. She was very rude and said I would maybe get a chq this week! I was really annoyed and upset so I complained to my boss & I received a BACS payment today but it was for only £190.00.

My complaint is she is telling me that I have to make tax con at 22% and NI at 11% I queried this with her and she told me that if it had been included in my March pay it would of paid at the same 33% ?? which I find to be too high. Basically a 3rd of my pay.

My gross pay is £944.16 + £288.00 commision = £1232.16
I went on a payslip checker so my tax should of been £156.56 and NI £87.87
a net of £987.73
As it stands I was paid the 2.88 in original pay so my commission owed is stood at £285.12. My question is why have I been taxed/NI at just over £95 making my payslip £190?? I believe it should of been around £57 paid in contributions, a wage slip of £228.

Please can anyone help, am I wrong?? I know it is not very much difference around £38 but she has been just plain rude and [FONT=&quot]condescending[/FONT].. My pay is absolute rubbish as it is and cannot afford to live!!
Please put my mind at ease :mad: has given me a headache lol, but its the principle of it. I will hold my hands high if I'm wrong. Thanks all..Love this site x

I think you are wrong Debbie. Tax is 22% and NI is roughly 11%

You would of been credited your month 12 personal allowance on your gross pay of £944.16 +2.88 so the bacs payment you received today,the 285.12 would be taxed at basic rate. I make that roughly £63 tax before NI

donny-gal

Sorry Debbie, but it sounds correct to me, once you have had your allowances that is what you would need to pay. I've never heard of commisssion being at a different rate though, but as it is the end of the tax year you should be able to work it out presuming your have no unusual allowances or deductions from your tax code. Take your gross wage for the year and if you contribute to a pension then there should be a taxable pay column, use that. Your tax code should be probably 522L? In which case take from it £5225 from your taxable pay, that is the figure you need to pay tax on, you pay 10% on the first £2330, and then 22% on the balance, unless you fall into the higher tax band around £32k, so let us say you earn £20,000 a year after paying pension, less the 5225 = £14775 to pay tax on, £2330 @ 10% = £233. and £12545@ 22% = £2759.90 which = tax paid of £2982.90. National Insurance is 11% it is shown on this page http://www.hmrc.gov.uk/rates/nic.htm
As was said before, it depends how much you have earned up to now.
DG

Mikeyorks

debbie2326 wrote: »

... am I wrong??

Probably.

Needs the data CarolynH asked for, to be precise. But there's probably enough there to more or less fix it.

Every month you get one twelfth of your personal allowance (£5225? ... Code 522?) against your pay - with no tax deducted. So that's £435 .... tax free

Then you pay tax at 10% on one twelfth of the 10% band (£2230). So that's the next £186 at just 10% = £18.60.

BUT .... you then pay 22% on everything left to be taxed. This would have been £944.16 initially - £435 tax free - £186 @ 10% = £323. So £323 @ 22% = £71.

So - your tax on the £944 would have been around £90 (£18.60 + £71). But £71 of that arises just from the last £323 of pay - and only £19 from the first £621! And that is because all your allowances / lower rates of tax are set against the first chunk of pay. As soon as you add further chunks - the results are no longer related and go up steeply.

So - if you now add the commission? It's not a new pay date ... so your personal allowances are already used .... so everything gets charged at 22% tax (and 11% NI).

Sorry - but it looks right. And it's the reason you hear people muttering 'it's not worth working overtime'. Simply because every extra £1 .. is charged at their top level of tax ... because all the allowances / lower levels are already used?

http://www.hmrc.gov.uk/rates/it.htm

debbie2326

Gosh thanks for replies so quickly!
As I didn't/haven't received a payslip for end of yr yet!!! I am not sure of final pay. working of last months payslip
Gross £944.17
Commission £264.17
Total £1208.17

PAYE 147.6
ins £85.05 (=£232.81)
Net £975.36 paid

( To Date 13051.37
Taxable 1571.45
ins 909.27 )
Tax code 522L

If you go by last months figures I was paid £975.36 and had a lower commision
Total paid this month has been
£775.60 + the £190.00 payment = 965.60 paid and I earned £24 more in commission..

The rich get richer, the poor get poorer lol...
Single mum of two, wots the point all..

Thanx again for ur kind replies x

[Deleted User]

Hi,

sorry, looks fine.

Here's a wee gadget you can mess about with, remember to change the wee box for yearly/monthly/weekly.

CLAPTON

basically after the basic allowances you pay tax at 11% and NI at 11%

so on your bonus of 288
tax is 22% of 288 = 63.36
and NI is 11% of 288 = 31.68

so total deductions are = 95.04

so take home pay is 192.96 (and you have already ahd 2.88 worth already )

chrisbur

debbie2326 wrote: »

Gosh thanks for replies so quickly!
As I didn't/haven't received a payslip for end of yr yet!!! I am not sure of final pay. working of last months payslip
Gross £944.17
Commission £264.17
Total £1208.17

PAYE 147.6
ins £85.05 (=£232.81)
Net £975.36 paid

( To Date 13051.37
Taxable 1571.45
ins 909.27 )
Tax code 522L

If you go by last months figures I was paid £975.36 and had a lower commision
Total paid this month has been
£775.60 + the £190.00 payment = 965.60 paid and I earned £24 more in commission..

The rich get richer, the poor get poorer lol...
Single mum of two, wots the point all..

Thanx again for ur kind replies x

The £285.12 that was owing should be £191.03 if 33% is deducted. It looks to me as if a third was deducted. It may be that the £190 is only an estimated advance and the corect figures will go through on your next payslip.

This only accounts for a pound of the differance, the real problem is the £775.60 that you say you got as net pay. A gross of £944.17 plus the £2.88 gives £947.05 which if there has been no change to your tax code and no adjustment to your taxable gross would give a net of just over £800, not £775.60.

You need to get this payslip and advise the gross, tax, NI, net, tax code, and taxable pay to date, and also give the same details for the two months previous. Then hopefully we can see what is going on.

Unless something is being adjusted for example a change in tax code then as your gross goes up so does your net.