PAYE, calculations and P60???

srcandas

Last year I took on the PAYE for myself and partner to save a few schekels. It's a limited company but only two of us. I bought a PAYE spreadsheet which seemed well respected and had been around a few years.

That year ending March 2011 I thought I had done with. I sent off the end of year stuff to HMRC. I produced two P60s based on the figures on the last payslips.

However revisiting the spreadsheet I noted an anomoly.

My March payslip shows:

Taxable pay ytd £35,250.00
Tax todate £5134.00
NIC todate £2166.34

But on the PAYE spreadsheets for me as an employee it shows:

Tax deducted: £5414.00
Employee's contributions due £2245.94

I'm now thinking perhaps the spreadsheet has an error?
Do I take the payslip figures for the P60?
Have I missed something - yup probably

Can anyone suggest anything before I open up a can of worms with the HMRC help desk? :beer:

pjclar02

Hello there

Surely if you used the spreadsheet to prepare the payslips, and then used the March payslip to generate the P60, then the spreadsheet should match the P60. I may have misunderstood the situation though!

Anyhow, first step will be to work out which is correct. What PAYE code was operated through the March 2011 payroll? We should then be able to work out which is correct, and you can then submit a revised P35 to HMRC if needs be.

paulwf

Slightly off topic but do you pay yourself a "directors salary" (around £135 a week to keep your NI contributions up to date but not incur tax) then pay the rest as dividends to keep your tax bill as low as possible?

srcandas

Thanks Pjclar. The issue is that the work sheet for each employee has different figures to the final payslip. I think I will take the original spreadsheet and work through the year again. That may cast some light on when the difference arises between the worksheet figure and the payslip figure.

Sadly the spreadsheet does not produce P60s

:beer: