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why is salary calculator giving me a take home calculation much lower than my actual take home?

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  • Ybe
    Ybe Posts: 442 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    The likelihood is that your employer is using payroll software that is very similar to the salary calculator, so it's your input that awry. It's Monday, I take it you can contact your payroll dept., have you done so?
    Yes and they told me to contact HMRC about tax queries. 
  • penners324
    penners324 Posts: 3,512 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Try UK Salary Calculator. It allows you to enter cumulative amounts for the tax year
  • masonic
    masonic Posts: 27,305 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 20 November 2023 at 7:27PM
    Ybe said:
    sheramber said:
    Ybe said:
    molerat said:
    The most usual cause of error is incorrectly declaring the pension deduction method.
    It’s salary sacrifice. The only thing I can think of is the not working in April. 
    I’ve put in all the pensions

    if it is all salary sacrafice then it is already deducted from your salary and your employer makes the payments , not you. 

    You do not have any pension payments to enter.
    The take home pay calculator I posted at the start has an option for it though? 
    You would either enter your gross salary before salary sacrifice and enter the pension contributions as salary sacrifice, or enter the pay after salary sacrifice and zero pension contributions.
    Looking at the calculator, I don't see any way to enter variable pay, which in effect is what you have had by not working for the full tax year, so it's not surprising it isn't matching reality. A gross pay of £30,000 after salary sacrifice and normal tax code would result in take-home of about £2,000pcm, whereas if you project the gross earnings for tax to date (6 months salary over 7 months) forward you'd get a take-home of about £1,800pcm. In reality, you have not been earning 6/7ths of your salary per month, you are merely missing one month at the start of the year for this employment.
  • Ybe
    Ybe Posts: 442 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    edited 20 November 2023 at 11:24PM
    So I’ve worked out my gross income before tax to date and then projected it to the end of the month. Then used salary calculator to work out the tax I’d owe for the year. Dividing this by 11 gives a tax value a lot closer to what I’m paying (only £45 or so out). So I assume it is that April I didn’t work which is what’s causing less tax to be deducted. 
  • penners324
    penners324 Posts: 3,512 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Did you use the calculator I suggested?
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