Payroll made a big mistake

getmore4less

With NI unless under when it starts you usually end up paying less if the overpayment is done as a proper deduction

chrisbur

getmore4less wrote: »

thanks

woops, don't know what I put in to get those obviously wrong numbers

gross...........tax...............ni...........net
£22,782.34...£9095.97...£724.92...£12961.45
£2,278.24.... £288.98.......£193.83..£1795.43

net £11166 difference

Fixed the other post( I hope)

That is what I made if you assume that this was the normal wage. I am not fully conversant with how the tax allowance is removed from high earners these days but suspect that in this case as the employee was not really in the bracket to loose his tax allowance it was given for this month. We do not know the tax code but if we assume 1000L we have an allowance of £833.33 which would reduce the 45% tax by £375 so we then get a difference of £10791.00
We do not know the overtime or the tax code etc. but this is coming close to the OP's husband's figure of £10600 so suspect his calculation was something along these lines. Which of course means that the actual figure is almost certainly higher than this. The only way it could be this is if the tax code was applied on a non-cumulative basis from month 2 onwards. I think this is very unlikely.

EDIT The £375 should actually be added to the difference so we would get £11541 nearer now to the employers figure but still probably wrong for the same reason.

getmore4less

If you reduce the tax on the 22k then you add it to the difference not remove it.

Hard without the real numbers but the op seem reluctant to give the relevant information.

getmore4less

xHannahx wrote: »

The pension percentage is very relevant.

From the figures earlier in the post, with
0% Pension he has been overpaid by £11747
5% pension £11183
10% pension £10619

All approx calculations, assuming no other tax friendly benefits, and no student loan payments etc.

Your hubby's calculation looks about right on the assumption he has a 10% pension contribution.

How do you get the 11747?

chrisbur

getmore4less wrote: »

If you reduce the tax on the 22k then you add it to the difference not remove it.

Hard without the real numbers but the op seem reluctant to give the relevant information.

Yes of course, got my plus and minus mixed up. Trying to hard to work out where these figures are coming from.

xHannahx

chrisbur wrote: »

Interesting, any chance of sharing the details of your calculation?
I appreciate that they are approximate but a rough idea would be great.


So far we have three calculations ( one from the employer, one from the employee and now yours) but no-one has shown how the figures were arrived at.

It's a net Income calculator in an accountancy software. Calculation used standard tax code. It doesn't show how the figures are reached. Any tax benefits would need to be taken into account as well, as would any expense claims.

getmore4less

xHannahx wrote: »

It's a net Income calculator in an accountancy software. Calculation used standard tax code. It doesn't show how the figures are reached. Any tax benefits would need to be taken into account as well, as would any expense claims.

I used

http://www.listentotaxman.com/22782.34?time=12

£22,782.34...£9095.97...£724.92...£12961.45
£2,278.24.... £288.98.......£193.83..£1795.43

net £11166 difference

HMRC calculator for tax on PAYE £8,720.51 so it looks like the reduction of personal allowance may not be proportional

that would give a difference of £11541

ohreally

xHannahx wrote: »

It's a net Income calculator in an accountancy software.

It doesn't show how the figures are reached.

And herein lies the crux of payroll issues around the country. Individuals who are responsible for pay calculations relying on a piece of software, fine when its correct, the system collapses when something goes wrong and individuals are generally clueless when it comes to engaging their brain to correct a blunder.

OP, I'd be inclined to use your own verified calculations and submit this to payroll with the proviso that if they disagree then they need to demonstrate with full and transparent workings (taking account of all the variables used) where any dispute arises and why its disputed.

agrinnall

ohreally wrote: »

OP, I'd be inclined to use your own verified calculations and submit this to payroll with the proviso that if they disagree then they need to demonstrate with full and transparent workings (taking account of all the variables used) where any dispute arises and why its disputed.

This may be the best course of action, but I'd still have a concern that even if the employer accepts it the OP's own calculation may not be correct, and that if the accountant is confident that they can accurately calculate the figures once the P60 is available it may be worth waiting for that to happen.

getmore4less

Hmrc provide the tables to do it accurately. Problem is they also allow the use of calculations which get different answers to the tables.

I used them to model pay in a spreadsheet to verify umbrella company that was using Sage and they got the numbers wrong.