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Calculate gross earnings

Gross earnings

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Hi. I’m trying to work out what I will pay in child maintenance. I’ve got a limited company which I set up last year. I don’t know what my gross earnings are yet but I need this info to work out what to pay. I pay myself £3000 a month (£1,011.71 in wages and the rest in dividends) but I need to take into account tax and NI for gross earnings. What will my gross pay be per annum going on what I take out a month? 
thanks in advance 

 

Replies (27)

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Stepurhan
By stepurhan
10th Mar 2021 14:22

You take out £1,988.29 per month in dividends? Theoretically possible, but unlikely.

If you are calculating PAYE correctly, then you should be able to work this out. If you aren't calculating PAYE correctly, which seems likely, I see why you have a problem.

You should get paid-for professional advice. Just from the scant details provided here, it already seems likely you are doing things wrong. If you cannot afford it, maybe you should not be operating through a company.

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Replying to stepurhan:
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By Chris22
10th Mar 2021 14:34

Very helpful, thank you for your time.

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By Kevin Kavanagh
10th Mar 2021 14:35

Your company is registered at companies house. So you can take a combination of salary and dividends. You say £1,011.71 is wages - a very precise amount which suggests you (or someone on your behalf) is operating a payroll scheme. If you (they) are then the info you want is at your disposal. If no-one is you're starting to dig a very big hole. Get professional paid for advice before the hole is too deep for you to get out of.

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Replying to Kevkava:
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By Chris22
10th Mar 2021 14:41

My account decided that is what I should pay myself. My accountant is also my ex wife’s best friend so I don’t feel I can ask this type of question without fearing it might get back to her. I currently pay £700 in child maintenance which I know is a lot. I’m just trying to work out what I should pay and meet in the middle thus me needing my gross pay figure. If Any one can quickly work that out for me that would be greatly appreciated as the hole im in at the moment is from debt!

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Replying to Chris22:
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By Wanderer
10th Mar 2021 14:45

Chris22 wrote:

If Any one can quickly work that out for me that would be greatly appreciated as the hole im in at the moment is from debt!

It's not possible to calculate this from the information supplied.
All you need to do however is look at your payslips. Take the gross pay from there and add the dvidend to that.
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Replying to Chris22:
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By SXGuy
10th Mar 2021 14:50

If you have an accountant that you can't ask a question to because your scared it will get back to the ex wife... Get a new accountant!

I can not comprehend how someone could employ the services of someone who they can not call on to answer questions. It beggers belief.

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Replying to Chris22:
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By Cheshire
10th Mar 2021 14:52

[quote=Chris22]

'' I currently pay £700 in child maintenance which I know is a lot. ''

Really!!!!

Tell you what - you take on your child/children, get the ex to pay you that and see how much you end up moaning, especially when she tries to cut the amount.

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Replying to Chris22:
Stepurhan
By stepurhan
10th Mar 2021 16:53

Chris22 wrote:

My account decided that is what I should pay myself.

Then they should have advised you why at the same time and advised you on dividends as well. As I already noted, your stated dividend figure is odd and I would be surprised at an accountant suggesting it.
Quote:
My accountant is also my ex wife’s best friend so I don’t feel I can ask this type of question without fearing it might get back to her.

If they are a member of a professional body, they could get into big trouble passing confidential information to a third party (assuming your ex has no involvement in your company. If they do then you have a different problem).

But if you genuinely have that concern, then asking a question is not going to trigger it. Your accountant will know exactly what your company is earning and how much you are taking. If they are inclined to blab, they can do so already. The only answer is to get a new accountant if it worries you.

That said, why would you be concerned if they did blab? Surely you are going to provide accurate information, so they would not be able to tell something you aren't going to disclose already.

What your ex earns is irrelevant, no matter how personally aggrieved you may feel about it.

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By SXGuy
10th Mar 2021 14:47

How about looking at your payslip?

From the limited info I'd bet your not operating paye properly or you'd know the answer.

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By Duggimon
10th Mar 2021 14:52

edit: I replied before I saw your most recent comment.

While I don't for a second doubt your accountant's integrity, if you have important financial issues to deal with that you are uncomfortable discussing with your accountant, you need a new accountant.

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By Jane Wanless
10th Mar 2021 15:28

"I currently pay £700 in child maintenance which I know is a lot."

You don't mention how many children this is for, but say that you take £3000 per month from the company. If we assume one child, less than 25% of your income is going on your child. This is not "a lot" when considering the needs of a growing child. If an infant, there's the cost of nappies and a regular supply of new clothes (several outfits a day); for a young child in addition to clothes there's shoes (amazing how quickly feet grow) and then there's school trips, extras for clubs, swimming and sport and that's all in addition to food and housing costs, toys and books, holidays and so on. If there is more than one child, multiply the cost accordingly.

So please forget £700 being "a lot" of child support.

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Replying to janewanless:
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By Chris22
10th Mar 2021 15:48

It’s for two child and my ex earns 3 times as much as I do. I’ve spent thousands trying to get custody because my ex is always working and cares more about money than the kids. Thus her demanding as much as she can squeeze out of me. I would do anything to have my children and I would t ask her for a penny. But unfortunately we live in a world where mothers get the say even though they want to live in an equal world. Like I said. She doesn’t need the money for the kids. More her life style and just likes to see me struggle. So before you judge you should realise you don’t know the whole story and maybe just answer the question If you can rather than going off topic. I felt a bit sorry for myself earlier. Now I just feel sorry for you. Thank you

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Replying to Chris22:
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By Cheshire
10th Mar 2021 16:05

[quote=Chris22] '' maybe just answer the question ''

How dare you.

You are not entitled to free advice, so stop demanding it.

Get another Accountant.

It doesnt matter what she earns.

£700 for to children is a bloody pittance.

Work out the (full) costs of bringing up 2 children and I mean properly, counting everything they need, and split the costs down the middle. Include something for their future counselling needs for having to deal with divorced parents.

Stop trying to look like you are trying to abdicate monetary responsibility for bringing up your own children.

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Replying to Cheshire:
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By Chris22
10th Mar 2021 16:24

I didn’t demand free advice. I asked for help regarding a question. I’ve just read me post back and nowhere in it does it asked to be judged. My ex earns over £150,000 a year. I earn about £40,000. I’d be willing (am wanting) to have the children full time and wouldn’t expect a penny even knowing what she earns.

*This comment has been moderated by the AccountingWEB team.*

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Replying to Chris22:
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By Cheshire
10th Mar 2021 18:17

I love you too.

You are very wrong though.

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Replying to Cheshire:
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By Paul Crowley
10th Mar 2021 19:06

So calm
reads superbly

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Replying to Paul Crowley:
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By Chris22
10th Mar 2021 19:22

Just like her previous reply!!
Who threw you a bone. Why do people in forums go off on a tangent. I just asked a simple question. If you can’t answer it. Don’t reply. Why feel you have to judge someone when you know nothing about them.
Thanks to everyone else who stayed with the topic.

*This comment has been moderated by the AccountingWEB team.*

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Replying to Chris22:
By Duggimon
11th Mar 2021 08:50

Chris22 wrote:

I didn’t demand free advice. I asked for help regarding a question. I’ve just read me post back and nowhere in it does it asked to be judged. My ex earns over £150,000 a year. I earn about £40,000. I’d be willing (am wanting) to have the children full time and wouldn’t expect a penny even knowing what she earns.

The cost of seeking advice for free on an open forum is that people can say whatever they want in reply. Creating the thread doesn't give you ownership or the right or ability to dictate how people respond.

If you want someone to be civil to you at all times, take direction from you, and answer what you want when you want then that's a service you pay for.

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Replying to Duggimon:
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By Chris22
11th Mar 2021 09:53

What absolute nonsense!! If I ask a stranger in the street if they have the time, they have the right to judge me and mock the colour of my skin because I didn’t offer to pay for the information I asked for (not demanded). I was brought up to treat people how you expect to be treated. Have a good day.

*This comment has been moderated by the AccountingWEB team.*

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Replying to Chris22:
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By Hugo Fair
11th Mar 2021 11:08

"I was brought up to treat people how you expect to be treated" ... oh the irony!

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Replying to Chris22:
Stepurhan
By stepurhan
11th Mar 2021 11:16

Chris22 wrote:

What absolute nonsense!! If I ask a stranger in the street if they have the time, they have the right to judge me and mock the colour of my skin because I didn’t offer to pay for the information I asked for (not demanded) . I was brought up to treat people how you expect to be treated. Have a good day.

An astonishing false equivalence there.

If you ask a stranger on the street for the time and they tell you to bog off, or say you should buy a watch of your own, or mock you for not being able to tell the time from the sun, they are free to do that. Arguably all valid responses (though with varying degrees of justification) and none of them even approach outright racism.

I'm not convinced that we have even reached that level here. It is still the risk you have to take when you ask strangers you are not paying to give you anything for free though.

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Replying to Chris22:
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By Paul Crowley
10th Mar 2021 16:59

Out effing rageous

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Replying to Paul Crowley:
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By Paul Crowley
10th Mar 2021 22:36

There is one of the issues with thread construction
Now looks like a De Lorean and I have gone back in time to predict OPs comment to me
Still
Works both ways

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By alialdabawi
10th Mar 2021 16:48

As SXGuy has said, why would you have an accountant whom you couldn't not freely discuss your finances with? You are afraid that a question about one part of your financial affairs might get back to your wife, but the whole of your financial affairs are still in the hands of her friend. Just take a step back, listen to yourself talking, and come to the realisation of how bizarre it is that you have not appointed someone else yet!

Your earnings are healthy, take the advice given (appoint a new accountant) and good luck with the situation.

Don't bite back - above has been good advice so far.

And btw, if your cats have cheated on you, you want a different forum for that...

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By cinnamint
10th Mar 2021 16:52

Hi
If you're operating a PAYE scheme, your accountant should provide you with payslips that show your gross pay. If you're not comfortable chatting to him/her, you need to find someone else you can be comfortable with. Is your accountant also doing your bookkeeping or are you doing that?

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By Matrix
10th Mar 2021 16:56

I would move accountants but we are duty bound to keep things private. One of my best friend’s ex husbands kept me throughout the divorce. He asked for confirmation that matters were private and the ex never knew I still acted for him.

I now think it was so he could have an annual dig (his emails were less professional than mine).

I hope things work out for you, this is the hard part.

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Tallula Brogan
By Tallula Brogan
11th Mar 2021 11:17

Hi everyone, the moderating team have decided to close any further comments on this thread. Some of the comments have been moderated for going against our site guidelines. Thank you all for your input.

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