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Why do my accountants not have my salary/PAYE amounts the same each month?

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    Why do my accountants not have my salary/PAYE amounts the same each month?

    I'm set up to earn minimum wage or just around that, meaning my net salary ends up as £9372.88 (from £10968 gross).

    My monthly salary figures are not the same through the year though... for about the first half of the year they are about £820 and then they change to £730.
    Similarly, my montly PAYE/NI amounts payed by MyCo are ~£92 for the first few months and then raise to £300.
    The totals all seem fine, but why do they do it this way? Am I paying less tax until my income reaches the first tax threshold, it looks about right for this but why bother when things are worked out annually?
    Originally posted by MaryPoppins
    I'd still not breastfeed a nazi
    Originally posted by vetran
    Urine is quite nourishing

    #2
    Originally posted by d000hg View Post
    I'm set up to earn minimum wage or just around that, meaning my net salary ends up as £9372.88 (from £10968 gross).

    My monthly salary figures are not the same through the year though... for about the first half of the year they are about £820 and then they change to £730.
    Similarly, my montly PAYE/NI amounts payed by MyCo are ~£92 for the first few months and then raise to £300.
    The totals all seem fine, but why do they do it this way? Am I paying less tax until my income reaches the first tax threshold, it looks about right for this but why bother when things are worked out annually?
    Have you asked the people who did it? the accountant? We dont know what they've applied, how much tax you've paid or anything else that might affect it.

    Why do people seem so worried to approach and question their accountant? thats what you pay them for! :EEK I've questioned mine a few times, once I think i was correct, the others i was being daft. They didnt care one bit that i questioned it, and it caused a giggle on other occasions...

    Get some balls. if what they do is wrong, its you that will have to take the responsibility at the end of the day. Act like you're in charge and question the things you dont understand! if you get a crap response, change accountants! Its your business they should be fighting to keep!
    I didn't say it was your ******* fault, I said I was blaming you!

    Comment


      #3
      Originally posted by d000hg View Post
      I'm set up to earn minimum wage or just around that, meaning my net salary ends up as £9372.88 (from £10968 gross).

      My monthly salary figures are not the same through the year though... for about the first half of the year they are about £820 and then they change to £730.
      Similarly, my montly PAYE/NI amounts payed by MyCo are ~£92 for the first few months and then raise to £300.
      The totals all seem fine, but why do they do it this way? Am I paying less tax until my income reaches the first tax threshold, it looks about right for this but why bother when things are worked out annually?
      Because you are a director and the optimum way of deducting NI for a director is to deduct none at all in the early months.

      (note that this form of NI deduction is not allowed for a 'normal' employee).


      tim

      Comment


        #4
        WHS. The NI payments are calculated on a cumulative basis I think ie they increase through the latter half of the financial year rather than being equally divided across each month. Something to do with being a director I think.

        Comment


          #5
          Originally posted by scooby View Post
          Have you asked the people who did it? the accountant? We dont know what they've applied, how much tax you've paid or anything else that might affect it.
          I told you the relevant figures... gross salary and monthly breakdowns.
          I don't think my accountant is wrong, I was interested why it was done this way. As the other posters proved, it's easy to be helpful. If you don't know the answer you don't have to post.
          Originally posted by MaryPoppins
          I'd still not breastfeed a nazi
          Originally posted by vetran
          Urine is quite nourishing

          Comment

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