ChatterBank10 mins ago
Need To Find Gross Amount
10 Answers
I have a net wage of £388.40 and I need to find the gross figure of which 20% has been taken off to get £388.40.
how do I do this, any help appreciated
how do I do this, any help appreciated
Answers
Best Answer
No best answer has yet been selected by HongKongphooey. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ."Its for a self employed lad we have, so he does his own National Insurance etc"
So why do you stop him 20% of his gross earnings? If he is a "self-employed lad that you have" is he genuinely self-employed (as a sole trader, perhaps?). If so, he is responsible for paying not only his National Insurance but also his income tax. You have no responsibility to deduct tax from his earnings. If a self-employed plumber does £1,000 worth of work for me I don't think he'd be too impressed if I only gave him £800 and promised to pay the other £200 to the taxman for him.
I think you may need to look into this a bit deeper.
So why do you stop him 20% of his gross earnings? If he is a "self-employed lad that you have" is he genuinely self-employed (as a sole trader, perhaps?). If so, he is responsible for paying not only his National Insurance but also his income tax. You have no responsibility to deduct tax from his earnings. If a self-employed plumber does £1,000 worth of work for me I don't think he'd be too impressed if I only gave him £800 and promised to pay the other £200 to the taxman for him.
I think you may need to look into this a bit deeper.
And I've just noticed you asked an almost identical question (except that the amounts involved were different) in May 2015.
I raised the question of NI and tax allowances then but no response was forthcoming. You now say categorically that you are deducting 20% from a self-employed person's fees (not wages - if they are wages he is not self-employed). I really think you ought to examine why and how you are "employing" this self-employed person.
I raised the question of NI and tax allowances then but no response was forthcoming. You now say categorically that you are deducting 20% from a self-employed person's fees (not wages - if they are wages he is not self-employed). I really think you ought to examine why and how you are "employing" this self-employed person.
I agree with NJ. I am wondering whether this person should really be considered self-employed. Which industry/trade does he work in? I have heard of organisations that use 'self-employed' staff to work for them 'off the record' and agree to pay them the net amount they would have got (and the organisation then just pockets the tax as a saving. However I don't think that is happening here- otherwise HKP wouldn't need to know the gross figure