Originally posted by boonaby1982
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I joined them after recommendation, looking for a PAYE payroll service.
They said I had to be taxed at 42% as a high rate earner.
After a 3-4 months when I asked for a P60 they presented a minimum taxable amount. Rest of the net income came into a form of a dividend voucher. They also gave me a statement of earnings clearly saying gross and net amounts.
I was receiving monthly payslips with a strange ‘Tax and expenses’ line on the bottom left of the payslip but it never crossed my mind that they would deviate from a pure PAYE service into something I still can not comprehend.
Despite all these discrepancies they keep reassuring that they will pay the tax, they are even offering to give me the money to pay the tax earlier(!) if I was in a hurry since as you already mentioned they calculate their tax return just before January.
If they are to pay the tax owed I am wondering on what income basis do they pay this tax. They have generated a P60 for my employment and paid a minimum tax on it.. If they were to pay the tax owed they would have to generate another P60 which is not possible, right? Do they pay a collective tax for all of their employees then as a company? I do not get it.. How are they justifying the rest of my gross income coming in their pocket, as what?.. as Ltd’s income paying 20% tax?
Someone shed some light explain how could they do it in an avoidance way?
Thanks.
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