Salary Deductions Calculator

Chiddles

I have been looking for a salary deductions calculator or spreadsheet which allows me to input the following:

1. Basic gross salary for a month or year
2. Overtime payments for a month or year
3. Non-consolidated (i.e. non-pensionable) payments for a month or a year
4. Percentage of pension contribution

...and I would like it to output the following information

1. A breakdown of basic and higher rate tax deductions for the month or year
2. The amount of national insurance deductions for the month or year
3. The amount of pension contributed for the month or the year

The the main reason for me wanting this is that I would like to check my payslip is accurate and I cannot find an existing online calculator or spreadsheet that shows me all the info I need.

I would be grateful if anyone can point me in the right direction. I have created my own spreadsheet to do this but although Im sure Ive followed all the basic rules for tax, NI, pension etc and created the formulas correctly, the numbers that pop out at the end don't match my payslip so either my spreadsheet is wrong or my payslip is. I think it may be related to how overtime payments and non-consolidated payments should be dealt with as this part I am not entirely clear on. I am happy to share my spreadsheet if anyone would like to improve it?

ShelfStacker_3

http://www.listentotaxman.com

Chiddles

ShelfStacker wrote: »

http://www.listentotaxman.com

Thanks ShelfStacker but this doesnt do a break down of how much tax is charged at 20% and how much at 40%.

morgani

sent you a pm

Chiddles

OK, part of my error was in not accounting for the lower NI due to being in a 'contracted-out' civil service pension scheme (CSPS).

So far, my spreadsheet correctly calculates my Pension contributions and NI contributions. However, the Income Tax calculations are still being over estimated by a few pounds. Not much, but it is bugging me!!!

Does anyone know if my pension contributions into my CSPS are added to my tax-free allowance? In other words, would this example be correct:

Personal Allowance (standard tax free limit): £6035 (taken from HMRC web site)
Basic Rate Threshold: £34,800 (taken from HMRC web site)
CSPS Pension Contribution: £1000 (made up for this example)

Pay no tax on the first £7035
Pay 20% on the next £34800
Pay 40% on everything after that

Therefore, for a salary of £100,000 (I wish!!)...
£7035 would be tax-free (6035 + 1000)
£34,800 would be taxed at 20% (£6960)
the remaining salary (100,000 - (34800+7035)) of £58165 would be taxed at 40% (£23266)
giving a total tax deduction of 6960+23266 = £30,226 ???

Chiddles

Another question, this time about NI...
The HMRC web site states that NI is calculated weekly but also gives the monthly and yearly levels as well:
............................ Week . Month . Year
Lower earnings limit - 90 ... 390 ... 4,680
Earnings Threshold - 105 ... 453 ... 5,435
Upper earnings limit - 770 .. 3,370 .. 40,040

However, 52x 105 is £5360, not £5435. Similarly, (770x52)/12 = £3336.67, not 3370. Which figures should I use for my spreadsheet when calculating based on a monthly salary?

Thanks in advance.

chrisbur

Chiddles wrote: »

Another question, this time about NI...
The HMRC web site states that NI is calculated weekly but also gives the monthly and yearly levels as well:
............................ Week . Month . Year
Lower earnings limit - 90 ... 390 ... 4,680
Earnings Threshold - 105 ... 453 ... 5,435
Upper earnings limit - 770 .. 3,370 .. 40,040

However, 52x 105 is £5360, not £5435. Similarly, (770x52)/12 = £3336.67, not 3370. Which figures should I use for my spreadsheet when calculating based on a monthly salary?

Thanks in advance.

They are rounded a little bit but not this much; with a couple of corrections to your figures they come a lot closer.
52 x 105 is 5460 not 5360 and
the the monthly upper earnings limit figure is 3337 not 3370 as you have.

chrisbur

Forgot to add the answer to your question the figure you use is the one that corresponds to your earnings period; so if you are paid monthly you use the monthly figures.

Chiddles

chrisbur wrote: »

Forgot to add the answer to your question the figure you use is the one that corresponds to your earnings period; so if you are paid monthly you use the monthly figures.

Sorry, a few typos on my part. Although I appreciate you apply the limits for the period for which you are being paid (i.e. the weekly limits for a weekly pay packet and monthly for a monthly one etc) but should I use the true Earnings Threshold figures of £453 for the month (as specified on HMRC NIC tables) or the figure calculated from the weekly amount i.e. £455 [(105*52)/12] ?? Given that HMRC states it is calculated weekly, I would assume its the latter but I cant understand why they would include a figure of £453 if they hadnt intended that to be used?
Similarly, for the upp earnings limit, should I use their published figure of £3337 or the calculated figure of 3336.67 [(770x57)/12] ??

Thanks again. Also, does anyone know the answer to my question about how pension contributions should be dealt with?

CLAPTON

as you are paid monthly then you must use the monthly NI figures

also reflect that your employer only knows e.g. your tax code is 603L .. they can't determine whether that means 6030 or 6039 as your tax allowance.. you get the benefit of the doubt.

Chiddles

Thanks again but I guess Im still not being clear on this. I'll try to explain the question again.

I get paid monthly, so I will use the NI limits for the month. However, HMRC states that NICs are calculated weekly (and applied monthly as that is how I get paid) but they give poorly rounded figures for the monthly limits in their tables. For example, the Monthly Earnings threshold is stated as being £453 BUT if you take the weekly amount of £105 and multiply it by 52 weeks then divide it by 12 months you get £455.

Therefore, should I use their poorly rounded limit of £453 in my calculations or should I use the derived amount of £455 which is extrapolated from the weekly amount?

This is a minor point as the difference is fairly minimal, I just wanted my spreadsheet to be as accurae as possible.

My more urgent query as stated in a previous post is whether my pension contribibutions into my contracted out CSPS is added to my income tax tax-free limit?