Firm closing

[Gladys]

14 minutes ago, woolley said:

 

 

 

There certainly are differences. ITIP is not the same as PAYE. Gladys is partially onto it. PAYE is based on your liability at the specific point in the tax year, whereas ITIP is an instalment payment for a week/month in isolation only. Sounds similar, but they throw up differing effects. Maybe it's best explained by taking a typical scenario that comes up quite often for one reason or another. Say you didn't work and had no taxable income from April to December, but then you start work on 1st January earning £3k a month.

If you were in the UK under PAYE, the employer would calculate your liability each pay day using your code based on the week/month number in the full tax year from the previous April. So, if (for round figures) the tax free allowance was £12k, you would pay no tax until the next April because your pay for the year remains within the allowance. No tax, so no rebate required. You would start paying tax with your April pay in the next tax year.

Facing the same scenario in the IOM under ITIP, the employer would still calculate your liabiilty using your code, but the system is not sufficiently sophisticated to take the portion of the tax year before your employment commenced into account. It doesn't work on week/month numbers. It is simply your monthly earnings less your free pay for that month (1/12 of your yearly allowance) and the balance is subject to tax. Consequently, despite not reaching your tax free allowance for the year, you do pay tax on your weekly/monthly earnings as though you had worked the whole year earning the same amount throughout. So in our hypothetical example of £12k allowance, and £3k monthly earnings, £1k would be tax free, then (say) £500 @ 10% and the rest @ 20%. When you fill in your tax form and are assessed, you will get the whole lot back.

From the next April the effects of the two systems are largely the same (except for the different rates and allowances of course.)

It's interesting as an employer when you are running both systems together.

 

Thanks Woolley, I know there is a difference but couldn't quite explain it. The biggest, most noticeable difference is that ITIP is tallied up at the end of the tax year. 

[Happier diner]

8 hours ago, woolley said:

Well done! My hat is off to you. You should tell her to seek further work opportunities in order to keep you in the manner to which you have become accustomed.

Man gets used to fine dining and it doesn't come cheap🤣

Just for Interest. The reason she has to have so many jobs is because of the way IOMG Income Tax Division make her a deemed employee for the companies she does work for. She used to be 100% self employed but they don't like that anymore and they make the companies employ her on fixed term zero hours contracts and pay her through BACS. Makes the tax return easier and we always get a nice little rebate in May. Nearly enough for an evening at Enzo's

I don't make her work lots of hours because that gets in the way of her cleaning and ironing obligations.

I am going to get my head around this PAYE/ITIP thingy

[offshoremanxman]

10 hours ago, Passing Time said:

Spoken like a true government shill

Yeah all I do here is government shill’ing 🤡

[0bserver]

The NPM/Pascoes thing is all a distraction. 

The real issue for firms now will be Cannan's comment about expecting a 'substantial' price rise from MUA.

I can only imagine how a small business owner who has (just about) survived the winter must now feel with the so-called Chief Minister making those comments. 

He could have at least provided some clarity as to why he expects it to be the case and the likely scale of increase to be expected. 

[CallMeCurious]

10 hours ago, offshoremanxman said:

But the income tax system really hasn’t changed here for about 40 years. You can’t really blame a system that hasn’t changed much at all for being the main reason why people suddenly aren’t taking out second jobs now. 

And yet here we are with people not taking second jobs possibly because a 40 year old system isn't flexible enough to put two identical tax ID's together and work out a tax code for each PAYE/ITIP employer to use so that at the end of the year there is little to no rebate and the employee sees the full benefit of their work right now.

Odd that. And why does the Isle of Man have everyone fill in a Tax Return every single year when they don't do that in the UK? Could it be to keep seats warm in CGO?

I wonder who benfits from a creak, inefficient and opaque tax system? Doesn't appear to be people struggling to make ends meet now does it.

[WTF]

54 minutes ago, Happier diner said:

Makes the tax return easier and we always get a nice little rebate in May. Nearly enough for an evening at Enzo's

 

fuck, that's some rebate.

[Non-Believer]

19 minutes ago, CallMeCurious said:

I wonder who benfits from a creak, inefficient and opaque tax system? Doesn't appear to be people struggling to make ends meet now does it.

We all know who does. The people who are supposed to be contributory factors to our economic salvation.

Well, now's the time for them to start proving their worth.

[CallMeCurious]

19 minutes ago, Non-Believer said:

We all know who does. The people who are supposed to be contributory factors to our economic salvation.

Well, now's the time for them to start proving their worth.

Or maybe fix the system so it is fit for the 21st century.

[CallMeCurious]

46 minutes ago, 0bserver said:

The NPM/Pascoes thing is all a distraction. 

The real issue for firms now will be Cannan's comment about expecting a 'substantial' price rise from MUA.

I can only imagine how a small business owner who has (just about) survived the winter must now feel with the so-called Chief Minister making those comments. 

He could have at least provided some clarity as to why he expects it to be the case and the likely scale of increase to be expected. 

The grand weather changing scheme because it worked so well for Canute. 

[offshoremanxman]

Pascoes Director reflecting on the business closing

https://www.iomtoday.co.im/news/business/pascoes-director-reflects-on-company-595663

[Gizo]

Ballamoar campsite closing after this season

[The Voice of Reason]

On 2/15/2023 at 8:40 AM, CallMeCurious said:

And yet here we are with people not taking second jobs possibly because a 40 year old system isn't flexible enough to put two identical tax ID's together and work out a tax code for each PAYE/ITIP employer to use so that at the end of the year there is little to no rebate and the employee sees the full benefit of their work right now.

Odd that. And why does the Isle of Man have everyone fill in a Tax Return every single year when they don't do that in the UK? Could it be to keep seats warm in CGO?

I wonder who benfits from a creak, inefficient and opaque tax system? Doesn't appear to be people struggling to make ends meet now does it.

I’m more than happy to file a tax return. You can check the calculations yourself then

[WTF]

42 minutes ago, Gizo said:

Ballamoar campsite closing after this season

really ??  they have spent quite a bit on that place over the last few years , i wonder if it's their idea to close or someone elses.

[Happier diner]

25 minutes ago, WTF said:

really ??  they have spent quite a bit on that place over the last few years , i wonder if it's their idea to close or someone elses.

I reckon they are just fed up of it. It must be a decent business. Maybe it will be sold on.

[Last Ten]

1 hour ago, Gizo said:

Ballamoar campsite closing after this season

Thats a housing estate in the making, the big guns would get at least 200 houses on that place.