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Tax codes can, and do, change, particularly if there’s been a change of personal circumstances, such as people getting married, claiming taxable state benefits, or workingfromhome. This means people can earn £12,500 tax-free, and only start paying tax on income over that amount.
Double-Check the Basics First, e.g. That an Employee Understands GrossPay vs Net Pay When troubleshooting payroll problems it’s important to start with the basics first; this means making sure that each employee understands their grosspay vs net pay , as well as what is being deducted from both amounts.
Daniel Yates, managing director at Pitchup, said: “As a business that is committed to supporting local communities through low impact, sustainable travel, it makes sense for us to offer the [bikes-for-work] benefit so employees can reduce their own carbon footprints.”
Employers make initial investments into necessary equipment on the behalf of employees, and a sum is then deducted from employees’ grosspay. If the employee leaves their employment, the remaining amount is deducted from their net pay and the bike becomes liable for tax. On average, employers can save 13.8%
Every payslip must show an employee’s total or grosspay, their net or take-homepay, any deductions or payments, and list any variable hours that have been worked. And, if they don’t fully understand exactly what they are looking for, then they should speak to their line manager in the first instance.
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