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Calculating one-off tax/NI payment?



 
 
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  #1  
Old January 15th 11, 03:55 PM posted to uk.finance
Rasta Pickles
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Posts: 26
Default Calculating one-off tax/NI payment?

Can't find anything online, everything seems to want to calculate
liability for the year.

My sister is temping and the only way to get wageslips is online; the
agency website is being overhauled so she can't access her wageslip
for the last two week's work.

In a nutshell, she worked 84 hours @ £9 an hour and she's had £632.40
paid into her bank account.

Does it sound about right? Basic rate taxpayer, no pension
contributions, tax code 647L.

If it isn't right, does anyone know how many hours they've paid her
for to arrive at the £632.40 figure?

Thanks in advance.
Ads
  #2  
Old January 15th 11, 04:50 PM posted to uk.finance
David Woolley[_2_]
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Posts: 98
Default Calculating one-off tax/NI payment?

Rasta Pickles wrote:


Does it sound about right? Basic rate taxpayer, no pension
contributions, tax code 647L.


One also needs to know what was on the P45 she gave the employer. Which
week of the year it was, and any tax and pay from that employer paid
previously in the same employment. If she's on P46 procedures she will
probably be on a week 1 tax code, not the cumulative one you quote. Also
one needs to know how many weeks were covered.

The £6,470 is spread equally through the year. The details may not be
quite right, but it is approximately 6470 * week number / 52. This is
subtracted from the gross pay to date and the amount multiplied by the
basic rate. The tax paid so far is taken off and that is the amount of
tax paid in the week. I think the NI thresholds and rates are done as
the week's fraction of the annual figures, assuming a weekly wage.
  #3  
Old January 15th 11, 04:59 PM posted to uk.finance
David Woolley[_2_]
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Posts: 98
Default Calculating one-off tax/NI payment?

David Woolley wrote:


The £6,470 is spread equally through the year. The details may not be
quite right, but it is approximately 6470 * week number / 52. This is


You should be able to get to the gory details by looking for something
like "taking on a new employee" on HMRC's site, then following through
from there. The actually proportioning of the tax free allowance uses a
pre-computed table, if you are doing it manually.
  #4  
Old January 15th 11, 05:10 PM posted to uk.finance
Robin
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Posts: 33
Default Calculating one-off tax/NI payment?

David Woolley wrote:
Rasta Pickles wrote:


Does it sound about right? Basic rate taxpayer, no pension
contributions, tax code 647L.


One also needs to know what was on the P45 she gave the employer.
Which week of the year it was, and any tax and pay from that employer
paid previously in the same employment. If she's on P46 procedures
she will probably be on a week 1 tax code, not the cumulative one you
quote. Also one needs to know how many weeks were covered.

The £6,470 is spread equally through the year. The details may not be
quite right, but it is approximately 6470 * week number / 52. This is
subtracted from the gross pay to date and the amount multiplied by the
basic rate. The tax paid so far is taken off and that is the amount
of tax paid in the week. I think the NI thresholds and rates are
done as the week's fraction of the annual figures, assuming a weekly
wage.


I would just add that we really need also to know if she is paid weekly
or fortnightly; and if weekly then how the hours divided between the 2
weeks. This can affect tax if the code is being applied on the
non-cumulative basis; and NICs if her earnings one week were above the
primary threshold and the other week were not.

It might all be a bit clearer if we knew what was on the last payslip
she has: eg what if anything does it show for pay and tax to date as
well as pay and tax for that week/fortnight?
--
Robin
PM may be sent to rbw0{at}hotmail{dot}com


  #5  
Old January 15th 11, 05:20 PM posted to uk.finance
Rasta Pickles
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Posts: 26
Default Calculating one-off tax/NI payment?

On Jan 15, 5:10*pm, "Robin" wrote:

It might all be a bit clearer if we knew what was on the last payslip
she has: eg what if anything does it show for pay and tax to date as
well as pay and tax for that week/fortnight?
--
Robin




Weekly paid, but because of New Year she's submitted two timesheets.

Her last payslip (representing a week) =

gross year to date 1287.00
tax year to date 157.20
gross pay 337.50 (37.5 hrs x £9)
tax 42.40
NI 25.02
  #6  
Old January 15th 11, 06:25 PM posted to uk.finance
Robin
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Posts: 33
Default Calculating one-off tax/NI payment?

It might all be a bit clearer if we knew what was on the last payslip
she has: eg what if anything does it show for pay and tax to date as
well as pay and tax for that week/fortnight?
--

Weekly paid, but because of New Year she's submitted two timesheets.


That's OK; and let's assume the tax and NICs have been computed for each
week separately as they ought.

Her last payslip (representing a week) =

gross year to date 1287.00
tax year to date 157.20
gross pay 337.50 (37.5 hrs x £9)
tax 42.40
NI 25.02


I make those figures right within a penny or two which I put down to the
rounding in the tables[1] for a PAYE code being operated on the
non-cumulative basis and NICs not contracted out (and not a married
woman's rate).

I forgot to say that we also need to know how the 84 hours worked
divided between the 2 weeks as the payer ought to calculate the tax and
NICs for each week separately if she is paid weekly. But from a quick
look at them I had expected her to have around more deductions and
around £37 less than £632.40 paid into her account .

But this ain't my business anymore so I could well have gone wrong
somewhere.

[1]I can't be a***d to download the tables so have used the calculation
method as best I recall it
--
Robin
PM may be sent to rbw0{at}hotmail{dot}com


  #7  
Old January 15th 11, 07:02 PM posted to uk.finance
Rasta Pickles
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Posts: 26
Default Calculating one-off tax/NI payment?

On Jan 15, 6:25*pm, "Robin" wrote:
It might all be a bit clearer if we knew what was on the last payslip
she has: eg what if anything does it show for pay and tax to date as
well as pay and tax for that week/fortnight?
--

Weekly paid, but because of New Year she's submitted two timesheets.


That's OK; and let's assume the tax and NICs have been computed for each
week separately as they ought.

Her last payslip (representing a week) =


gross year to date 1287.00
tax year to date 157.20
gross pay 337.50 (37.5 hrs x 9)
tax 42.40
NI 25.02


I make those figures right within a penny or two which I put down to the
rounding in the tables[1] for a PAYE code being operated on the
non-cumulative basis and NICs not contracted out (and not a married
woman's rate).

I forgot to say that we also need to know how the 84 hours worked
divided between the 2 weeks as the payer ought to calculate the tax and
NICs for each week separately if she is paid weekly. *But from a quick
look at them I had expected her to have around more deductions and
around 37 less than 632.40 paid into her account .

But this ain't my business anymore so I could well have gone wrong
somewhere.

[1]I can't be a***d to download the tables so have used the calculation
method as best I recall it
--
Robin
PM may be sent to rbw0{at}hotmail{dot}com


Thanks for your input.

So you reckon £595 net on gross of £756?

That seems a high deduction level?

37.5 hrs @ minimum wage gets you £190.44 a week?

I think the hours worked were 41 and 43 = 84.
  #8  
Old January 15th 11, 09:02 PM posted to uk.finance
Yellow
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Posts: 87
Default Calculating one-off tax/NI payment?

In article 50324022-6980-4ca7-ad32-8e3432460be2
@g26g2000vbz.googlegroups.com, says...

On Jan 15, 6:25*pm, "Robin" wrote:
It might all be a bit clearer if we knew what was on the last payslip
she has: eg what if anything does it show for pay and tax to date as
well as pay and tax for that week/fortnight?
--
Weekly paid, but because of New Year she's submitted two timesheets.


That's OK; and let's assume the tax and NICs have been computed for each
week separately as they ought.

Her last payslip (representing a week) =


gross year to date 1287.00
tax year to date 157.20
gross pay 337.50 (37.5 hrs x 9)
tax 42.40
NI 25.02


I make those figures right within a penny or two which I put down to the
rounding in the tables[1] for a PAYE code being operated on the
non-cumulative basis and NICs not contracted out (and not a married
woman's rate).

I forgot to say that we also need to know how the 84 hours worked
divided between the 2 weeks as the payer ought to calculate the tax and
NICs for each week separately if she is paid weekly. *But from a quick
look at them I had expected her to have around more deductions and
around 37 less than 632.40 paid into her account .

But this ain't my business anymore so I could well have gone wrong
somewhere.

[1]I can't be a***d to download the tables so have used the calculation
method as best I recall it
--
Robin
PM may be sent to rbw0{at}hotmail{dot}com


Thanks for your input.

So you reckon £595 net on gross of £756?

That seems a high deduction level?


Tax is 20% and NI is 11% so ball park take home is going to be between
75% and 80% gross once you have factored in the tax free allowance.

I just put the gross figure into an online calculator and £595.65 net
popped out.


37.5 hrs @ minimum wage gets you £190.44 a week?


Spot on.


I think the hours worked were 41 and 43 = 84.



  #9  
Old January 15th 11, 09:13 PM posted to uk.finance
Robin
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Posts: 33
Default Calculating one-off tax/NI payment?


So you reckon £595 net on gross of £756?


Yep.

That seems a high deduction level?
37.5 hrs @ minimum wage gets you £190.44 a week?


I suggest minimum wage is a red herring when she is getting £9 per hour.

But another way of looking at it is that the previous week she worked
37.5 hours when her deductions were
tax £42.40 plus
NICs £25.02 =
£67.42

The following 2 weeks she earns *more* but you say she suffered
*smaller* deductions of
84 x £9 = £756 minus
amount paid £632.40 =
£123.6

That's less than twice the deductions for the week when she worked less.
So yes, I was expecting *bigger* deductions.

I think the hours worked were 41 and 43 = 84.


That's helpful - but doesn't explain the discrepancy. She should have
paid at least as much tax and NIC for each week as she did for the
preceding week when she worked 37.5 hours. Unless of course the PAYE
code has changed in the meantime, or summat else is afoot.

Could that "summat else" be that she was actually paid for *three* (3)
weeks? Spreading the hours 84 hours evenly over three weeks I get a
total of £123.40
deductions - near enough to the £123.60 you report.

In any event, I'd advise waiting for the payslips as it certainly
doesn't look to me that she's being ripped off.
--
Robin
PM may be sent to rbw0{at}hotmail{dot}com





  #10  
Old January 16th 11, 07:11 AM posted to uk.finance
Rasta Pickles
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Posts: 26
Default Calculating one-off tax/NI payment?

On Jan 15, 9:13*pm, "Robin" wrote:

Could that "summat else" be that she was actually paid *for *three* (3)
weeks? *Spreading the hours 84 hours evenly over three weeks I get a
total of 123.40
deductions - near enough to the 123.60 you report.

In any event, I'd advise waiting for the payslips as it certainly
doesn't look to me that she's being ripped off.
--
Robin
PM may be sent to rbw0{at}hotmail{dot}com


Bloody hell, I think you've nailed it!

My sister now tells me the a time sheet she submitted (for 17 hours,
Xmas week) wasn't paid because she missed the cutoff point.

So, this £632.40 payment actually represents three weeks, 17hrs,
24hrs, 43hrs.

Sorry for the misleading info - sisters, gotta love 'em!
 




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