2017/18 income tax weeks

adonis10

https://my.sage.co.uk/public/help/askarticle.aspx?articleid=13351


As per the above the latest week end date is 8/11/17 (week 31) so if an employee is paid weekly each Friday their latest pay before this date would be 3/11 and as such their pay falls within the 31st week so presumably when calculating tax paid to date they would work out their personal allowance to date as 11500/52 * 31 = 6856?

chrisbur

adonis10 wrote: »

https://my.sage.co.uk/public/help/askarticle.aspx?articleid=13351


As per the above the latest week end date is 8/11/17 (week 31) so if an employee is paid weekly each Friday their latest pay before this date would be 3/11 and as such their pay falls within the 31st week so presumably when calculating tax paid to date they would work out their personal allowance to date as 11500/52 * 31 = 6856?

That will do as a rough guide but if you want to be accurate the tax allowance used for PAYE so far is £6861.54 for weekly paid. This is deducted from taxable gross to date and tax is then 20% of the pounds, any pence on the end is ignored. This assumes you are not into the next tax band then it is a bit more complicated.

Doing a rough calc better to put a 9 on the end of your tax code eg 1150L use £11509

00ec25

despite computerised payrolls, it is sometimes still worth looking at how it used to be done in the old days when one did it manually using actual paper tables to get the various figures.

The so called "pay adjustment" (ie your tax free allowance) is still published on Table A here:
https://www.gov.uk/government/publications/tables-a-pay-adjustment-tables
taking the standard code 1150L (ie cumulative allowance of £11,500) as at week 31 you take the following from Table A week 31 on page 34

code 1150 breaks down into: 150 and 2 x 500, so on page 34:
150 @ week 31 = 899.62 + 500 @ week 31 = 2980.96 x 2 = 5961.92
total allowance @ week 31 (899.62 + 5961.92) = 6,861.54

the key to understanding the tax allowance is a) it is not 11,500 in reality! and b) those paid weekly get a tad more than those paid monthly !
- weekly will get 11,509.68 per year (so 11509.68/52 x 31 = 6861.54)
- whereas monthly paid get 60p less as their allowance is 11,509.08 per year

adonis10

00ec25 wrote: »

despite computerised payrolls, it is sometimes still worth looking at how it used to be done in the old days when one did it manually using actual paper tables to get the various figures.

The so called "pay adjustment" (ie your tax free allowance) is still published on Table A here:
https://www.gov.uk/government/publications/tables-a-pay-adjustment-tables
taking the standard code 1150L (ie cumulative allowance of £11,500) as at week 31 you take the following from Table A week 31 on page 34

code 1150 breaks down into: 150 and 2 x 500, so on page 34:
150 @ week 31 = 899.62 + 500 @ week 31 = 2980.96 x 2 = 5961.92
total allowance @ week 31 (899.62 + 5961.92) = 6,861.54

the key to understanding the tax allowance is a) it is not 11,500 in relaity! and b) those paid weekly get a tad more than those paid monthly !
- weekly will get 11,509.68 per year (so 11509.68/52 x 31 = 6861.54)
- whereas monthly paid get 60p less as their allowance is 11,509.08 per year

Thanks. Really insightful, although I am not overly concerned about the saved tax on an extra £9.68, rather just need to know which tax week a particular date will fall in so I can approximate whether HMRC have made a mistake by changing the tax code of a friend. What tax week would a pay day of today fall into?

Dazed_and_confused

Week 31.

Does this help (includes several options including weeks)

https://my.sage.co.uk/public/help/askarticle.aspx?articleid=13351

adonis10

Dazed_and_confused wrote: »

Week 31.

Does this help (includes several options including weeks)

https://my.sage.co.uk/public/help/askarticle.aspx?articleid=13351

Thanks. Thought so, but just checking.
Yes, great help thanks.

Dazed_and_confused

The extra £9.68 isn't always permanent either. The employer has to use those figures during the year but HMRC will always use the actual Personal Allowance in any calculation they issue to sort anything out after the year ends.

So for example if your friend needed to claim higher rate tax relief on a personal pension payment and was expecting say £500 they would in reality probably only get £498 back because they had underpaid by £2 during the year.

adonis10

Dazed_and_confused wrote: »

The extra £9.68 isn't always permanent either. The employer has to use those figures during the year but HMRC will always use the actual Personal Allowance in any calculation they issue to sort anything out after the year ends.

So for example if your friend needed to claim higher rate tax relief on a personal pension payment and was expecting say £500 they would in reality probably only get £498 back because they had underpaid by £2 during the year.

Great, thanks. No issue of higher rate tax or pension, simply an income tax calculation with £2 neither here nor there, which explains my indifference to extreme detail in this situation!

Dazed_and_confused

There are some pretty helpful/experienced people on here so if you post details of your friends actual issue there may be help forthcoming

adonis10

Dazed_and_confused wrote: »

There are some pretty helpful/experienced people on here so if you post details of your friends actual issue there may be help forthcoming

Will do once I've got all the detail from him.

00ec25

adonis10 wrote: »

rather just need to know which tax week a particular date will fall in so I can approximate whether HMRC have made a mistake by changing the tax code of a friend. What tax week would a pay day of today fall into?

there is always a grid which equates the week /month dates to the week/month number on the relevant year's "table" and instructions on how to deal with fortnightly, 4 weekly and 53 week pay periods

for example, at the top of page 2 on the 16/17 calculator table:
https://www.gov.uk/government/publications/taxable-pay-tables-calculator-method

in reality of course (leap year excepted) there is no variation year on year