[Dave Willis]

I am currently in dispute with an insurance company over loss of earnings regarding a recent minor accident.
I’ve had this before where they simply divide your annual income by 52 to find your weekly pay. Unpaid leave doesn’t seem to enter the equation. Then they knock off tax at 20% and deduct 10% for NI contributions.
Robbing barstewards.

I’ve had this before - never offer to go to court, they apply the same trick.

[Crystal-clear]

I am currently in dispute with an insurance company over loss of earnings regarding a recent minor accident.
I’ve had this before where they simply divide your annual income by 52 to find your weekly pay. Unpaid leave doesn’t seem to enter the equation. Then they knock off tax at 20% and deduct 10% for NI contributions.
Robbing barstewards.

I’ve had this before - never offer to go to court, they apply the same trick.

I don't understand how they can handle your tax affairs which are unique to your personal circumstances?

[Stoots]

how else would they determine what to pay other than what youve declared?

[Shrek]

Kinda makes sense doesn’t it 

Divide annual salary by 52 - are you saying you could’ve done 2 weeks work in one week or something? Not sure what the issue is

[Dave Willis]

What I’m getting at is our weekly rate shouldn’t be calculated on 52 working weeks more like 46 per year as being self employed we won’t work and earn for 52 weeks of the year.
Makes no difference to employed people their holidays are paid.
Also if they are deducting 20% tax, who gets it?

Might be just me I suppose.

[Frankybadboy]

not 100% sure how mine was worked out over 2years none or little work

i let them sort it out

[Ooooooog]

What I’m getting at is our weekly rate shouldn’t be calculated on 52 working weeks more like 46 per year as being self employed we won’t work and earn for 52 weeks of the year.
Makes no difference to employed people their holidays are paid.
Also if they are deducting 20% tax, who gets it?

Might be just me I suppose.

HMRC I guess?

[Stoots]

What I’m getting at is our weekly rate shouldn’t be calculated on 52 working weeks more like 46 per year as being self employed we won’t work and earn for 52 weeks of the year.
Makes no difference to employed people their holidays are paid.
Also if they are deducting 20% tax, who gets it?

Might be just me I suppose.

Still not sure I get It.

Surely they base it on what youve earned in a year and divide by 52 to get the weekly ?

Say you turn over 40k what relevance is it that you have worked 52 week, 46 or 20?

They are just calculating the weekly average how else can they do it?

With regards the tax are they calculating the weekly on your gross or net profit?

If on the gross then again what wouldn't you expect to pay 20% tax on it

[Dry Clean]

What I’m getting at is our weekly rate shouldn’t be calculated on 52 working weeks more like 46 per year as being self employed we won’t work and earn for 52 weeks of the year.
Makes no difference to employed people their holidays are paid.
Also if they are deducting 20% tax, who gets it?

Might be just me I suppose.

Still not sure I get It.

Surely they base it on what youve earned in a year and divide by 52 to get the weekly ?

Say you turn over 40k what relevance is it that you have worked 52 week, 46 or 20?

They are just calculating the weekly average how else can they do it?

With regards the tax are they calculating the weekly on your gross or net profit?

If on the gross then again what wouldn't you expect to pay 20% tax on it

The tax is a get out of paying scam as you will still have to pay tax  and NI on the money they give you.

[Dave Willis]

Exactly, and £40,000 divided by 46 is better than £40,000 divided by 52

How can an insurance company deduct tax and NI? Do they hand that to the tax man?
By coincidence the woman who hit my van has the same insurance company as my car which is due for renewal. Thought I’b better own up to having had an accident even though my van is with another insurance company (totally her fault).
“Thank you Sir, that will be another £100 we will be adding to your premium” wtf?