How do I explain to the cleaner (who barely reaches the PA each year) that HMRC have decided that D1 would be a suitable tax code, and I will be deducting 45% (probably 50% actually, as it is a cumulative code) plus 12% NI. She barely speaks English, and if she really is earning over £150k elsewhere, why on earth is she cleaning for me at just over NMW?
As it is, she thinks I'm stealing her money for deducting 20+12 = 32% from her pay (above LEL etc).
She's started asking for cash-in-hand, at £6 per hour (which was ok, as I'd just gross up 6x the hours, to account for tax and NI), but I'm not going to do that at 45%
Rant over.
Replies (8)
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If she was working ...
... 16 hours a day, 365 days/year at NMW she would barely reach the higher rate threshold.
I would call HMRC whilst she is there, get her to do the security checks and then pass them to you to find out what is going on. Usually it is past jobs still shown as active in these cases that cause the problems.
Too much ?
Sounds like you're not paying her enough !!
You can only resolve this by contacting HMRC.
Sounds
Like an hmrc [***] up then. Nothing new there. Unless of course she has oodles of other income about which you have no idea.