If someone paid just over nine grand in taxes, then what is their gross income?

[ladysybil]

I'm a bit clueless. does anyone knoew how to work this out? even roughly would be fine.

47-48k ish?

thank you

just had a play around \link{http://listentotaxman.com/index.php\here} and it came up with around 35k?? No idea how accurate or reliable is is though

47000
tax 8810
ni 4321

Anyone else want to know why ladysyb wants to know iyswim?

oh - I assumed that with taxes she meant including NI...........

and ues Chaos - I do - I reckon it's child maintenance or something..........

you could be right baroque

so could you

so OP - it's either around 45-47k or around 35k.

Mind..........if it includes a student loan then it appears to get even more complicated

You're assuming a straight PAYE 20% basic + personal allowance situation. Of course, if the person paying the tax is self-employed, a director of a company, has any perks like a company car or falls into some other category then the calculation isn't quite so straightforward.

self employed. director of company. dodgy but stays legal iyswim. no student loan. dont think there are NI contributions there, but not sure. its the self asessed amount..

Many people who are self-employed are correctly advised by their accountant to designate as much as possible to the legitimate expenses of running the company and then pay themselves a relatively low taxable wage or, if appropriate, pay themselves in dividends which attract a lower rate of tax than straight cash income. A PAYE employee with no perks would pay £9000 tax on approximately £48,000 income. A self-employed director with personal expenses that they can write down to the company might pay £9000 but receive a lot more fringe benefits.

okie, girls. I am trying to work out how much dh earns. He keeps it a secret. I dont want to discuss the major ramifications of all this relationship wise, just trying to get some sort of grasp of how much he makes.
In that year, he paid 3K taxes for me as I am also down as an employee

he's rather well off then, isnt he?

and i really should have namechanged for this :)

Did you actually receive wages in exchange for work done or are you just 'down as an employee' and he keeps the money?

ive done stuff for the company, but tbh, i did it with the attitude that i am doing stuff as his wife. running cheques to the bank, sorting out paperwork, etc. not his employee. He payments go straight into the joint mortgage account, so its all fine and dandy on paperwork. i dont have any access to it, but for years, i have been okie with it, as it pays the mortgage, and i live in the house. iyswim.

Then on top of whatever he's drawing from the business he's also taking about another £19,000 p.a. net in the form of your 'wages' (£22,000 gross). It's pretty common for small business owners to do that... pretend the wife works for them so that they can use her personal allowance to avoid paying the extra tax on earnings that are actually theirs. And it's legal, of course. But you should have access to that money because it's legally yours and you should be the one deciding where it goes.... not him. You don't sound all that happy with being kept in the dark this way.

im not, but thats about sixty thousand other threads on here.

so, along with his own 45 plus 22 mine, he is on 67k or 69k or even if its 35 for him using the original other calcs, its 57k a year?

He shouldn't have paid any tax for you. He would almost certainly have been better off paying tax on profit from company than paying income tax for you.

You pay yourself just enough to pay ni- which takes you very slightly over basic tax. Then pay tax on company profits at lower rate than income tax/ni.

No you are on 20 odd k

He is on 35 - 47

However if he is paying income tax on that amount he is not exploiting all tax benefits. Are you sure it's income tax and not tax?

in which case he is on even more money, isnt he?

he would have exploited every loophole there is. I know this, coz i saw a recent bank statement in which he is paying my 13 year old son a salary. that was a serious wtf moment for me. I think the tax he had to pay for me was something to do with changing companies over and dividends, he would probably keep my earnings below any taxable thresholds.

actually, you guys can answer this query for me. How can he be paying a 13 year old £484.. surely, they arent even allowed to work partiuclarly long hours? i know its different for 15 year olds, but at 13 its still child labour stuff isnt it. and, no he hasnt done any work for the company except back in the summer when i would hand him omney to get off his backside and go into town to deposit a cheque and buy himself icelollies too.

oh he is seriously dodgy, isn't he?

What are you going to do? anything?

You have to Inform the school and Lea if they are 13 and complete forms. Look on direct.gov.uk

If you are employing your own family the hmrc don't take it well and if reported will Investigate but sometimes check up anyway. They cant be directors as a way to avoid tax- family under 18 wave their tax allowance.

hecate, he is soooo dodgy, it is unbelievable.. but he always stays within the law. he's clever like that.

I'm not planning on doing anything, as ds isnt actually doing any work for him. and tbh, even if he was, i would take it as a positive coz it owuld mean he is learning about life in the real world. iyswim. dh asks only for him to do well in school and is happy to pay for him to go on his school trips etc. Its probly dh#s way of ensuring he has money to pay for school fees etc.

I just want information about it all, so that if i do decide to do something, i know what i'm about.

change, do you mean he would have had to tell the school that he was emploing ds?

When I set up my business I went on a few tax avoidance courses run by ex hmrc. They strongly advised against trying to employ families to avoid tax as they reckoned likely to be caught out and then whole business would be unlpicked.

They did however help with lots of other tax tips.