I don't understand an answer from HMRC PAYE calculator...

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Tom McClelland

Tom McClelland

Free Member
Feb 10, 2008
2,872
789
Looking Over Your Shoulder
  • #1
    I'm checking a query someone has raised with us, and I'm getting the following result from the HMRC calculator... Is it just me, or has that calculator not just failed to calculate 40% of the cumulative earnings? This is a really simple where you don't have to calculate free pay or earnings bands or anything, so I think I'm going mad, because surely the HMRC calculator can't be getting it wrong?

    http://payecalculator.hmrc.gov.uk/PAYE0.aspx


    PAYE Tax Calculator

    Glossary
    spacer.gif

    Values Entered

    Employee tax code: D0
    Period of pay: Weekly
    Is it on a week 1 basis: No
    Pay this week: £548.94
    Previous total gross pay to date: £23,609.11
    Previous total tax due to date: £9,193.00

    Payment Date: 28/01/2011
    Results

    Week Number 0
    Total pay to date (column 3 of P11) £24,158.05
    Pay adjustment (column 4a of P11) £0.00
    Total taxable pay (column 5 of P11) £548.94
    Total tax due to date (column 6 of P11) £9,412.20
    Total tax due this period (column 7 of P11) £219.20
     
    D

    David Richards

  • #3
    Back of fag packet calculation...

    I make it that it should be be deducting £470.20, as total tax due is £9663.20. What it's doing is deducting a straight 40% from week 43's pay, rather than looking at the total pay to date.

    It looks like they've forgotten that D0 is no longer implicitly a W1/M1 tax code... it changed at the start of this tax year.

    But then, as you and I both know, the HMRC PAYE calculator doesn't go through the same accreditation process as the payroll software we supply. Software calculating that amount of tax would fail accreditation.
     
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    Tom McClelland

    Tom McClelland

    Free Member
    Feb 10, 2008
    2,872
    789
    Looking Over Your Shoulder
  • #4
    There's a relief. I'm not going mad then. (or if I am it isn't destroying my ability to do simple calculations).

    It doesn't solve the fact that I have a client complaining to me that, "12Pay is getting its D0 calculations wrong". :mad: After all, how could HMRC's calculator have any errors in it?

    Won't everything be wonderful, once HMRC have taken full charge of PAYE and NI calculations. :eek:
     
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    wizzard

    wizzard

    Free Member
    Oct 7, 2008
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  • #5
    Tom McClelland said:
    There's a relief. I'm not going mad then. (or if I am it isn't destroying my ability to do simple calculations).

    It doesn't solve the fact that I have a client complaining to me that, "12Pay is getting its D0 calculations wrong". :mad: After all, how could HMRC's calculator have any errors in it?

    Won't everything be wonderful, once HMRC have taken full charge of PAYE and NI calculations. :eek:
    Click to expand...

    Oh yes knees up and brewery spring to mind (clean version :D )
     
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    D

    David Richards

  • #6
    Tom McClelland said:
    There's a relief. I'm not going mad then. (or if I am it isn't destroying my ability to do simple calculations).
    Click to expand...
    No definitely not, I even checked it our payroll software afterwards and got the same result.

    Tom McClelland said:
    It doesn't solve the fact that I have a client complaining to me that, "12Pay is getting its D0 calculations wrong". :mad: After all, how could HMRC's calculator have any errors in it?
    Click to expand...
    Been there too, it's a tough one. Even showing them the working out doesn't always convince them!

    I don't know if it will help to say you've even had the calculation checked in a competitor's payroll - and that it agrees with your program. Becasue there's not much else that can be done in that situation. :(
     
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