FRI2 - Is it just me or...

[kippermate]

I recently received my 38th birthday present from HM, for which I was most grateful. As expected, Gordon Brown took a fair chunk of that back in income tax. I was most surprised, however, when this month's pay statement landed on the doorstep. This month's take home was nearly £1200 less than Mar 05. Now, I am more than happy to pay my way and, perhaps I am being naiive, but I did not expect that FRI2 would cost quite so much. Of the £50k FRI package that was on offer, (and I am aware that for many it is being/has been removed) I immediately paid £20k in income tax and, if this month's pay statement is anything to go by, will pay almost £14k extra in tax and NI this year. £16k over 5 years (about £270 per month) does not look quite such a good package as I had previously thought.

Whilst I appreciate that this is better than a poke in the eye with a stick, I don't think that its not much better.

Is there anyone else in this position, or am I being a wingeing tw@t?

kipper

[Safeware]

take home was nearly £1200 less than Mar 05
Oh to be in the position of not being that worried about having £1200 less a month. So, nail on head with the wingeing tw@t bit. :p

[L1A2 discharged]

just another set of expectations trashed by this shoddy bunch of wasters sometimes known as 'the management'

please let me be in tranche 3, don't want much in life ....



must purchase a keyboard with gaps between the lettres

[charliegolf]

Oh to pay £14k more tax in a year!

CG

[kippermate]

Safeware,

Thanks for the constructive criticism. Wife will have to do without the Jimmy Choos!

Yeh right!

:ok:

kipper

[Zoom]

Blimey! My pension is less than half of your tax! I knew I was foolish to retire before making CAS.

[HEDP]

You might find that the tax man's 'puter has assumed that the payment was monthly income and therefore is billing you tax as if your monthly pay will remain constant (with the FRI). It would probably be refunded/balanced out after 12 months but if you ring said tax man they may be able to right the wrong earlier, that is if this is the problem!

Regards

HEDP

[Hueymeister]

Ring the Tax Office pronto...sounds like a mix up...

[airborne_artist]

It won't be the tax man's puter, it's the one that your employer is using. They follow IR rules (so they say) and pay over all the tax/NI deducted each month. First call the pay office, and check as above.

The tax man won't really take much interest until you submit your self-assessment form with your P60 (end of year pay/deductions summary)

[kippermate]

Good news.

I spoke to the Inland Revenue this morning and it seems that, because the FRI was paid at the start of the year personal allowance etc was taken into account when deducting income tax. If the payment had been looked at as a one off payment and had income tax deducted at 40% and NI at 1% then the payment should have been £29.5k, however they didn't. Then in this month's salary they took the 'underpayment' of Income tax and the required payment of NI which made me twitch. Next month's salary should be the norm.

I just hadn't expected to have to use the FRI payment to subsidise a drop in monthly income. Unlike has been suggested, a drop in income of £1200 per month would have made my eyes water. It was a bit of a shock to be paid as a Fg Off!

Never mind, I'll stop wingeing and head off to the Choo shop!

:E

kipper

[rafloo]

Never mind, I'll stop wingeing and head off to the Choo shop............




clearly not a Harrier pilot then.