Those on a salary (tax changes)

Scubascorpion said:
Just checked my original contract from 2005 (signed nothing new since:rolleyes: ) and it states the following:
Remuneration;
You will be paid a salary at the rate of £XXXX net per week payable weekly in arrears.

So I guess that answers that question then.

So effectively the company would get a divvy off the government on MY personal allowance if my pay does stay the same next month. Doesn't sound fair somehow..
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Why on earth would you sign an agreement based on NET pay, unless you were sure it would go in your favour?
 
No answer really other than naivety I guess, looking back on it.
I was Glad to be out of my last job...
"Du Management" seemed sound enough that I wouldn't get screwed over...
I was going to be doing a job I enjoyed and the money wasn't the be all and end all..


Yes Fox, I've had a raise since, a whole £20 a week by the looks of it. :o :( and yes it was verbal "Here's a pay rise", nothing new to sign that I remember, certainly don't have any record of it myself if I have signed something I've since forgotten about.
 
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Scubascorpion said:
Just checked my original contract from 2005 (signed nothing new since:rolleyes: ) and it states the following:
Remuneration;
You will be paid a salary at the rate of £XXXX net per week payable weekly in arrears.

So I guess that answers that question then.

So effectively the company would get a divvy off the government on MY personal allowance if my pay does stay the same next month. Doesn't sound fair somehow..
Click to expand...

I'm not sure that is actually legal. What does your payslip say, does it have a gross and net figure on it, how is PAYE calculated?

Edit: The wife says it happens.


However, there is a way around this anyway, if you got yourself a small p/t job (just a few hours would do) you could give that job your tax allowance, which would mean your current employer would be liable to pay more tax on your behalf and you would benefit from your increased tax allowance.

Also you could apply to a court to have any child support paid by attachment of earnings, or student loans paid that way or a smart pension. Your contract gives you a guaranteed net salary, your employer would soon give you 90 days notice of a change in T&C's if he realised he was paying for your pension contributions etc...

If you are clever you could shaft your employer well and truely.
 
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Castiel said:
I'm not sure that is actually legal. What does your payslip say, does it have a gross and net figure on it, how is PAYE calculated?

I would contact the Inland Revenue to query this sort of arrangement.

However, there is a way around this anyway, if you got yourself a small p/t job (just a few hours would do) you could give that job your tax allowance, which would mean your current employer would be liable to pay more tax on your behalf.

Also you could apply to a court to have any child support paid by attachment of earnings, or student loans paid that way or a smart pension. Your contract gives you a guaranteed net salary, your employer would soon give you 90 days notice of a change in T&C's if he realised he was paying for your pension contributions etc...
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It's fine. HMRC (Inland Revenue not existed for years ;) ) also refer to it as a Free Of Tax agreement.

Take a look at http://www.hmrc.gov.uk/paye/payroll/special-pay/free-of-tax.htm , page 23 of CWG2 and PAYE20035.

You are correct in your final 2 paragraphs. While this kind of arrangement can be bad for an individual, as shown in earlier posts, it can be horiffically bad for an employer.
 
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