Tax query advice

[macka09]

Hi all.

I've recently gone self employed and I'm currently subbying to a firm who tax me at source. My question is, can I check on the Direct.Gov website if this is actually being paid on my behalf?

 

[hammers4spanner]

All the subbing i have done over the years i have received a pay slip as usual which shows how much tax etc etc From my experience tho it is down to you that they are actually paying your tax.

I assume you have passed your company a UTR number?

 

[macka09]

Yes I have gave them my UTR number. I've also just received my first payslip stating what I earned and what tax was paid.

So I've logged into my direct.gov account and can't find anything to do with tax paid or owed?

 

[macka09]

Also guys.

What's the score with national insurance contributions? The gaffer reckons it's about £15 a week but looking online it's 9% of profits?

I only earn a standard wage I don't do price work for them?

 

[Leo21]

Don't forget to keep all receipts, including food. Which you can claim for if your at work over so many hours.
You'll get a good chunk back at the end of the year.

 

[macka09]

I am going to chat with an accountant once I find one locally but it seems a lot to pay 20% tax then 9% NI as well?

 

[Chalked]

I am going to chat with an accountant once I find one locally but it seems a lot to pay 20% tax then 9% NI as well?

9% on profit is correct. It's paid on any income over £8000.0 don't forget your class 2 NI £2.80 a week . Normally paid by direct debit.
Basically we all pay 1/3 of or income in deductions. Obviously, once you get into the 40% bracket it's different again.

 

[macka09]

So if my weekly wage is £600 before deductions I actually take home £434 after tax and national insurance? Am I correct?

 

[Chalked]

So if my weekly wage is £600 before deductions I actually take home £434 after tax and national insurance? Am I correct?

If your subbing.
They will deduct 20% of your invoice. At the end of the year when you do your tax return ( get an accountant) you will then get a demand for NI. Normally tho, as you don't get tax and NI on all your wage. The deductions will more than pay for both.

Lest say you earn £600 a week and have 5 weeks off unpaid.

£600 x 47 weeks = 28,200.
First £10,000 tax free, so you will pay 20% of £18,200. Which is £3640. Tax.
You also pay NI over £8000.0. So 9% of profit is £1800 .18.

Add both together =£5440.18
Divide that by 47 weeks and you have £115.75 a week in deductions. This gives a weekly wage of £484.25.

This will be reduced if you have any expenses to go against tax. Like accountants fees, fuel etc.

If you get deducted 20% all year. You will have saved up £5640. So it will cover both.

Hope this helps.

 

[macka09]

Thank you. That clears things up for me. I will be paying an accountant so that I can get the information I need. I hear chaps on site saying they claim for an office at home and loads of stuff. All I'm thinking is my tools and fuel.

 

[hammers4spanner]

A good accountant will claim plenty for you