Paying too much tax

cherry76

The tax deduction seems correct but am not sure how payroll came to a net pay of £865.66 instead of £904. It does not seem to add up. In Feb when he forgot to submit his weekly time-sheets and submitted two at the same time,he was taxed wk1 month 1 non cumulative at a higher rate. Yax office was not helpful. He is hoping to get a refund. He has not done it again. Thanks for taking the trouble to look into this.

chrisbur

cherry76 wrote: »

Do not understand about umbrella company. What are the benefits?
Payment Date 19/10/2018
Tax Period 29 Tax Code 974L Tax Basis Cumulative NI Category A
Gross £ 1256.17 Net £ 865.66
Date Units Rate Adjustment Total
Bonus Fixed Amt 05/10/2018 535.62 1.00 535.62 0.00
Weekdays OT 12/10/2018 36.80 19.58 0.00 720.55
Stat Hol Ded 0.00 0.00 0.00 -77.61
NATIONAL INSURANCE Description Adjustment Total EE NI Cont 38.37 57.71
TAX Description Adjustment Total PAYE 198.20
Pension 18.62
Year to date
Gross Pay current 1178.56 year to date 17684.76
Taxable Pay current 1178.56 year to date 17684.76
NIable Pay 1178.56 year to date 17684.76
Tax current 198.20 year to date 2449.40
Holiday Earned current 4.44 year to date 169.71
Holiday Paid year to date102.00
Holiday Balance year to date 67.71
P45 Taxable Pay year to date 17684.76
P45 Tax Paid year to date 2449.40
Pension 18.62 year to date 336.83
Thanks for trying to help hope this makes sense to you. He will have to query it himself. With Hays if the hrly rate is £18, they deduct £2 for the holiday. I hate that, this gives you the impression you are earning more.

Having seen more figures this does not appear to be done under an umbrella arrangement.
The £1256.17 gross figure has been reduced by £77.61 the "stat hol ded" to give £1178.56 This is the figure tax has been calculated on.
I have no idea what this £77.61 is. I can only guess it is paid to the employee at a later date when they take holiday at which time tax and NI would be deducted. Is this the case?
The £1178.55 has had tax deducted of £198.20 which is correct. There has been a deduction of £18.62 for pension and the net pay figure is £865.66 This leaves £96.08 to account for.
The national insurance on the payslip is given as ....
"NATIONAL INSURANCE Description Adjustment Total EE NI Cont 38.37 57.71"
If you add £38.37 and £57.71 you get £96.08
I actually make the correct employee's Ni figure about £93.33 so no idea why it should be shown as two separate figures nor why it adds up to £96.08.


Regarding the Feb double payment whether there is a refund due will depend on the end of year figures. From the P60 or last week's payslip what is the taxable gross, tax paid and tax code.
As I said earlier I would also recommend a check on the NI for that payment.

Do you know the reason for the 974L tax code is this due to some benefit received or tax adjustment for a previous year?

cherry76

Thanks, yes the £77.61 is for holiday payment. The 947L tax code is for tax adjustment on interests earned which was above the £1000. I can see it adds up now with the ni adjustment of £38.37 and the net pay is correct. Thanks again for your help. It was not easy to post details as could not copy and paste properly in PDF. There must be an easier way to do it!