Gross Salary paid instead of the Net Salary

[mash315]

Hi Guys

I have got a quick question. I am a contractor operating through a limited company (employed). I have been taking salary and dividends as my remuneration. The problem is with the salary, I have paid myself gross salary instead of the net salary. For example, my pay slip shows gross salary as £2000 and net as £1500. But my bank account statement shows £2000 as paid by company. Will it be a problem? Should make my net to be £2000 and get a revised pay slip? Or is there any other way? Unfortunately I realized it just when I am about to apply for extension. I am new to the contracting world and it is mistake I made due to the communication gap between me and my accountant
Your response is highly appreciated


mash

[push]

Hi Guys

I have got a quick question. I am a contractor operating through a limited company (employed). I have been taking salary and dividends as my remuneration. The problem is with the salary, I have paid myself gross salary instead of the net salary. For example, my pay slip shows gross salary as £2000 and net as £1500. But my bank account statement shows £2000 as paid by company. Will it be a problem? Should make my net to be £2000 and get a revised pay slip? Or is there any other way? Unfortunately I realized it just when I am about to apply for extension. I am new to the contracting world and it is mistake I made due to the communication gap between me and my accountant
Your response is highly appreciated


mash

The net amount on the pay slip should match the amount credited in the Bank. Btw whats going on there? How can you pay yourself the gross amount?

[mash315]

Hi Guys

I have got a quick question. I am a contractor operating through a limited company (employed). I have been taking salary and dividends as my remuneration. The problem is with the salary, I have paid myself gross salary instead of the net salary. For example, my pay slip shows gross salary as £2000 and net as £1500. But my bank account statement shows £2000 as paid by company. Will it be a problem? Should make my net to be £2000 and get a revised pay slip? Or is there any other way? Unfortunately I realized it just when I am about to apply for extension. I am new to the contracting world and it is mistake I made due to the communication gap between me and my accountant
Your response is highly appreciated


mash

The net amount on the pay slip should match the amount credited in the Bank. Btw whats going on there? How can you pay yourself the gross amount?

Hi Push

Thanks for your response. I told my accountant that I am going to take £2000 as my net salary, but she has sent me the pay slips showing £2000 as my gross salary and net as £1552. I will ask her to send me revised pay slips. Between do you know what would be the Gross Salary if I take £2000 as Net Salary? Is there a formula to calculate NI, Tax and Net from Gross?

Many Thanks for your help

[push]

Hi Guys

I have got a quick question. I am a contractor operating through a limited company (employed). I have been taking salary and dividends as my remuneration. The problem is with the salary, I have paid myself gross salary instead of the net salary. For example, my pay slip shows gross salary as £2000 and net as £1500. But my bank account statement shows £2000 as paid by company. Will it be a problem? Should make my net to be £2000 and get a revised pay slip? Or is there any other way? Unfortunately I realized it just when I am about to apply for extension. I am new to the contracting world and it is mistake I made due to the communication gap between me and my accountant
Your response is highly appreciated


mash

The net amount on the pay slip should match the amount credited in the Bank. Btw whats going on there? How can you pay yourself the gross amount?

Hi Push

Thanks for your response. I told my accountant that I am going to take £2000 as my net salary, but she has sent me the pay slips showing £2000 as my gross salary and net as £1552. I will ask her to send me revised pay slips. Between do you know what would be the Gross Salary if I take £2000 as Net Salary? Is there a formula to calculate NI, Tax and Net from Gross?

Many Thanks for your help

there are a number of on-line net-tax calculators that show the NI contribution, tax and the net amount for a particular gross pay. You can run some trials to work it the other way round. Your accountant is the best person to help you with. I hope we are talking about a clean and legitimate operation here.

[mash315]

Hi Guys

I have got a quick question. I am a contractor operating through a limited company (employed). I have been taking salary and dividends as my remuneration. The problem is with the salary, I have paid myself gross salary instead of the net salary. For example, my pay slip shows gross salary as £2000 and net as £1500. But my bank account statement shows £2000 as paid by company. Will it be a problem? Should make my net to be £2000 and get a revised pay slip? Or is there any other way? Unfortunately I realized it just when I am about to apply for extension. I am new to the contracting world and it is mistake I made due to the communication gap between me and my accountant
Your response is highly appreciated


mash

The net amount on the pay slip should match the amount credited in the Bank. Btw whats going on there? How can you pay yourself the gross amount?

Hi Push

Thanks for your response. I told my accountant that I am going to take £2000 as my net salary, but she has sent me the pay slips showing £2000 as my gross salary and net as £1552. I will ask her to send me revised pay slips. Between do you know what would be the Gross Salary if I take £2000 as Net Salary? Is there a formula to calculate NI, Tax and Net from Gross?

Many Thanks for your help

there are a number of on-line net-tax calculators that show the NI contribution, tax and the net amount for a particular gross pay. You can run some trials to work it the other way round. Your accountant is the best person to help you with. I hope we are talking about a clean and legitimate operation here.

Hi
There is no wrong doing here. Due to a communication gap my accountant sent me payslips showing wrong amount, I just wanted to clarify if a correction is necessary or not. With or without the correction I have more than enough points to apply
Many Thanks

[push]

As I said, if the net-amount on the pay slip do not match with periodic credits on Bank statements, someone showing earnings from salary would not get any points on the earnings criteria.

[[iD]]

get your accountant to make you new payslip showing the net salary as £2000 and gross would obviously be a lot more than that

[atul.kundra1982]

Hi Guys

I have got a quick question. I am a contractor operating through a limited company (employed). I have been taking salary and dividends as my remuneration. The problem is with the salary, I have paid myself gross salary instead of the net salary. For example, my pay slip shows gross salary as £2000 and net as £1500. But my bank account statement shows £2000 as paid by company. Will it be a problem? Should make my net to be £2000 and get a revised pay slip? Or is there any other way? Unfortunately I realized it just when I am about to apply for extension. I am new to the contracting world and it is mistake I made due to the communication gap between me and my accountant
Your response is highly appreciated.

mash

dear friend,

there is no need to worry about it, you have 2 options to rectify the issue. 1) ask your accountant to re run a higher amount payslip for you that matches up the net amount to 2K and gross would be higher.
2) Whatever you have extra transferred i.e. £250 get an additional dividend voucher for this amount. ie 1750 Net salary and 250 dividend to make up the amount. its simple so do not worry....

it can happen as a mistake while transferring the money after reciving the payslip from accountant.