PAYE - Possible wrong calculations by accountant?

[greengecko]

Hello,

Just a quick one, as I'm rather unsure exactly on how to proceed with this.

At current there are 3 of us employed by a limited company taking home the following amounts:
Employee 1 : £1500 Gross
Employee 2 : £607 Gross
Employee 3 : £408 Gross

According to various PAYE calculators employee 1 should be around £1250 net, yet the payslips from the accountant show approximately £1170 or so. Furthermore the company is paying an additional PAYE (I believe it's worded as 'tax' by the accountant) of around £500 per month, which I'm almost certain might be wrong.

Could anyone please give me some clarity on the above figures. Noting that Employee 1 was on £767 Gross for the first 3 months of this tax year before changing to £1500 gross.

Many Thanks

 

[Anna Chandley]

Employee 1's net pay would be around £1250 if they had a standard tax code but the likely explanation is that they have been issued a tax code which is for less than the personal allowance. This could happen for many reasons including collection of tax from previous years or on non employment income.

The company would make a payment to HMRC each month of the tax and employees national insurance deducted from gross salaries plus the employer's national insurance payable. A very rough calculation of the tax and NI payable each month based on your figures is £450 per month so could this be the £500 payment that you refer to.

 

[greengecko]

Their tax code is 944L if that helps at all. Which as I understand means you’re entitled to the basic tax-free Personal Allowance.

Yes, by my calculations it should be around the £400 figure, yet this month it was £529 this month with £540 last month.

Furthermore with the employee having 3 periods this tax year at £767, I would have assumed they would take home slightly more than the £1254 or so I have calculated as they're personal tax allowance could be spread over the 9 remaining periods?

Many Thanks

 

[Anna Chandley]

Employee 1's payslip should show the exact breakdown of the amounts deducted - there could be a non tax explanation such as repayment of student loan, repayment of staff loan or pension contribution.

You need to ask your accountant for a breakdown and explanation of the payroll amounts.