Am I paying the cleaner too much?

Am I paying the cleaner too much?

Didn't find your answer?

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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By The Innkeeper
28th Dec 2015 08:41

But how

many other people does she work for?

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Replying to Paul Crowley:
By aiwalters
28th Dec 2015 16:23

None

The Innkeeper wrote:

many other people does she work for?

As far I as know, none.

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By User deleted
28th Dec 2015 10:34

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.

Thanks (1)
Replying to Youareatit:
By aiwalters
28th Dec 2015 16:27

Looks like the only solution

Old Greying Accountant wrote:

... 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.

She's been working for us (exclusively) for the past 4 years! Isn't RTI supposed to have stopped this ridiculousness? Whilst we could call HMRC and hopefully solve the problem, it does mean an awful waste of time and resources due to incompetence.

Maybe we should go across to the American system, where everyone can choose their own tax code (with a penalty for significant under-withholding)!

Thanks (1)
RLI
By lionofludesch
28th Dec 2015 13:17

Too much ?

Sounds like you're not paying her enough !!

You can only resolve this by contacting HMRC.

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By The Innkeeper
28th Dec 2015 16:27

Sounds
Like an hmrc [***] up then. Nothing new there. Unless of course she has oodles of other income about which you have no idea.

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By User deleted
28th Dec 2015 17:46

Erm ...

... is there an echo?

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RLI
By lionofludesch
29th Dec 2015 16:31

Apparently

... yes

 

yes

 

 

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