Tax Question Help

kerry87_2

Hi,

I am not sure if this is in the correct forum....

When your employer puts in your hours for the month into the paye system, how long does it take for HMRC to tell my employer how much tax and N.I to deduct?

Is this an instant thing or is there a waiting time for HMRC to come back to payroll?

Thanks in advance.

Caz3121

HMRC issue your tax code to your employer and they use the tax code to calculate out the deductions

CTA_2

kerry87 wrote: »

Hi,

I am not sure if this is in the correct forum....

When your employer puts in your hours for the month into the paye system, how long does it take for HMRC to tell my employer how much tax and N.I to deduct?

Is this an instant thing or is there a waiting time for HMRC to come back to payroll?

Thanks in advance.

It isn't a system where HMRC tell you how much is due. Companies will either do manual calculations or have payroll software which will calculate the amounts due for them.

CLAPTON

most companies have a computer payroll system

the system only needs your tax code and your monthly salaries from April to work out your take home pay

your company may have a cut off date after which no more changes (e.g. overtime) can be made to the monthly payroll

in general your tax code only changes once a year i.e. the standard tax code will change from 810L this year to 944L in April

kerry87_2

CLAPTON wrote: »

most companies have a computer payroll system

the system only needs your tax code and your monthly salaries from April to work out your take home pay

your company may have a cut off date after which no more changes (e.g. overtime) can be made to the monthly payroll

in general your tax code only changes once a year i.e. the standard tax code will change from 810L this year to 944L in April

So is it an instant thing where the amount before deductions is put into the system and then it instantly tells you the take home pay?

I have been told before now it can take up to 24 hours for the take home pay calculation to come back from HMRC which I thought a little strange.

My firm is only small and they use an outside accountant to do the payroll.

lovinituk

The delay is probably between your employer and the accountant but not HMRC.

kerry87_2

lovinituk wrote: »

The delay is probably between your employer and the accountant but not HMRC.

Do you mean a delay as in the accountant ringing my employer to advise of the take home pay?

lovinituk

kerry87 wrote: »

Do you mean a delay as in the accountant ringing my employer to advise of the take home pay?

I guess so. I do the payroll for my own company and it takes me a matter of minutes to enter the hours worked for the month and print out the wage slips. Granted we only have 2 employees, but even with more it wouldn't take me 24 hours.

kerry87_2

lovinituk wrote: »

I guess so. I do the payroll for my own company and it takes me a matter of minutes to enter the hours worked for the month and print out the wage slips. Granted we only have 2 employees, but even with more it wouldn't take me 24 hours.

There are only 3 employees including me at my firm so i guess it is the same sort of scenario

Thanks for the advice

lovinituk

kerry87 wrote: »

There are only 3 employees including me at my firm so i guess it is the same sort of scenario

Thanks for the advice

You do need to bear in mind that the accountant will have other work to do and other clients to deal with. Your employer might submit the payroll data on one day but the accountant won't necessarily deal with it immediately. A turnaround of 24 hours is not too bad really, depending on how busy the accountant is.