Aibu to not think this is right? Tax related.

[DisappointedMe]

I've name changed for this thread.

My DH had a big bonus in feb of this year, and it has taken him over the personal allowance threshold.

So we've since received a letter from HMRC basically changing his tax code, based on the last tax year's earnings, removing the personal allowance entirely.

His basic salary is just under the point where you begin to lose the personal allowance. And bonuses are not guaranteed.

So I've calculated that his pay from this month will drop by over £350/£400. It's going to be a real problem to shift money around to accommodate this loss.

I know as a family we are fortunate, but I thought that by the end of the tax year adjustments are made accordingly?

The envy on these threads is sickening.

Paying the correct amount of tax is precisely the same as claiming the correct amount of benefits yet those on benefits are always advised to go to whatever website it is that says how much you can claim. It's different when you only want to pay what you're supposed to.

It may well be a first world problem. As are benefits.

Week said Mrsmorton. Even the poorest in this country are bloody lucky. Those who are really up against it are too busy trying to eat and find shelter to feel envy, and even if they did, they'd be highly unlikely to be using a cpmputer to post on a forum.
All first world probs.

If he can work freelance through a limited company and pay himself, he will pay about 20% on the lot. Tens of 1000s better off

Just setting up a limited company and carrying on the current PAYE job does not mean it's legal. There are some tests used to judge whether it's a genuine company or just someone trying to avoid their proper rate of tax. In practice though, many people do it and you'd unlikely be caught if employer would go for it.

Apart from not obviously breaking the law to avoid tax, other benefits of being an employee include sick pay, parental leave, paternity pay, pension contributions, holidays, employee share and bonus schemes, redundancy, and unfair dismissal rights.

I think in the circumstances resigning tomorrow and setting up as a company to avoid tax would be a little short sighted.

at some of the posters. How sad that you begrudge someone like the OP and her DH their hard earned money. I think it's briliant that they have done so well.