Why can a company not pay you net instead of gross?
13 August 2008, 06:19 PM
#1
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Why can a company not pay you net instead of gross?
Sorry if this is a silly question, but why can't companies pay the income tax, NI etc and then pay their staff a net wage?
Are there any situations in which this could be possible?
thanks
Are there any situations in which this could be possible?
thanks
13 August 2008, 06:22 PM
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Isn't this already the case? I mean most companies deduct all this at source and pay net anyway or are you alluding to further benefits?
13 August 2008, 06:30 PM
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I didn't explain that at all well did i?! I mean pay as tax-paid, so the employee doesn't actually have to personally pay income tax. Like a gift i suppose. Does that make sense?
13 August 2008, 06:37 PM
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The only way that works, is if it is a gift. ie a holiday or such. You reach the target required, you get the holiday and they issue you with a certificate to show they have paid the tax on that benefit for you. Never heard of it ever being done with hard cash 
Hope that makes sense, I am useless at explaining stuff
Hope that makes sense, I am useless at explaining stuff
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13 August 2008, 06:38 PM
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Steve
13 August 2008, 06:39 PM
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It's do-able in almost all large organisations, and for each reason that suggests it's onerous or complex there's another that shows it as a benefit.
It fails a bit on the small employer, say of part time staff or the people that have transient work styles.
Where do I sign up?
It fails a bit on the small employer, say of part time staff or the people that have transient work styles.
Where do I sign up?
13 August 2008, 06:41 PM
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13 August 2008, 06:43 PM
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13 August 2008, 06:50 PM
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Not sure if this is any good, but you can have a look
http://customs.hmrc.gov.uk/channelsP...yType=document
http://customs.hmrc.gov.uk/channelsP...yType=document
13 August 2008, 07:01 PM
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13 August 2008, 07:22 PM
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wouldnt the simple way to be claim a given sum as expenses, fuel being a good one or travel etc this is not tax deducatble to the employee.
I also doubt there is a limit to the expense claim although if we are talking 1000's I imagine the IR may get wind and look into it {unless it was split over the full 12 months}
I also doubt there is a limit to the expense claim although if we are talking 1000's I imagine the IR may get wind and look into it {unless it was split over the full 12 months}
13 August 2008, 08:29 PM
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wouldnt the simple way to be claim a given sum as expenses, fuel being a good one or travel etc this is not tax deducatble to the employee.
I also doubt there is a limit to the expense claim although if we are talking 1000's I imagine the IR may get wind and look into it {unless it was split over the full 12 months}
I also doubt there is a limit to the expense claim although if we are talking 1000's I imagine the IR may get wind and look into it {unless it was split over the full 12 months}
If it goes through any expense system it has to be coded and then you would be taxed on benefit in kind.
Companies get audited and expenses are one of the main things they look at.
Steve
14 August 2008, 11:08 AM
#19
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What you are asking, in reality, is PAYE. The construction industry operates schemes where sub contractors (individuals and businesses) can be paid net or gross depending upon certification.
Of course you can engineer anything (as Nacro has pointed out) to keep the revenue happy that income tax/tax on the benefit has been paid (and NI where relevant) but the employee sees the payment/gift/benefit as effectively "tax free". You just gross it up.
Last edited by Devildog; 14 August 2008 at 11:15 AM.
14 August 2008, 12:19 PM
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the thing is, not sure what its like down sarrrf, but oooop norf the people i have spoken to who did taxis for a while, said that if everything was "legit", they simply could not afford to live a reasonable life.
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