MSE Income tax calculator vs HMRC - WHO'S RIGHT??

BODHISATTVA_2

Until recently I have been in receipt of an employee's salary, plus a pension from a previous employer. I have been checking the income tax I've paid over the last few years from the actuals I've had deducted by HMRC against the MSE Tax Calculator.

The pension tax code is D0 and the figures from HMRC and MSE are the same, so no problem there. 

However, the figures from my salary are different (I've entered the HMRC tax code into the MSE calculator correctly) - in effect the MSE Tax Calculator indicates I've paid too much tax. Entering the same figures into HMRX Tax Calculator results in being told I'm not owed a refund.

Please note that combined salary and pension is less than 100k. Any suggestions, please?

BoGoF

Without seeing screenshots impossible to say. Could be user error?

Dazed_and_C0nfused

BODHISATTVA_2 said:

Until recently I have been in receipt of an employee's salary, plus a pension from a previous employer. I have been checking the income tax I've paid over the last few years from the actuals I've had deducted by HMRC against the MSE Tax Calculator.

The pension tax code is D0 and the figures from HMRC and MSE are the same, so no problem there. 

However, the figures from my salary are different (I've entered the HMRC tax code into the MSE calculator correctly) - in effect the MSE Tax Calculator indicates I've paid too much tax. Entering the same figures into HMRX Tax Calculator results in being told I'm not owed a refund.

Please note that combined salary and pension is less than 100k. Any suggestions, please?

It may be pension contribution related.

Unless you fully understand the methods of contributing and how the calculators have been build you won't always get the right answer.

chrisbur

The MSE calculator works in a very strange way.  It is supposed to work for relief at source pensions where your pension is deducted from your net pay. This deduction is passed to your pension provider and HMRC also pay them the tax that you paid on that part of your gross pay which was deducted from your net pay.
So for example say you get £2000 and you pay £100 from your net pay in pension.
You will be taxed using the £2000 as your taxable pay and £100 is deducted from your net pay.
To get a net pay after tax of £100 you need £125 from your gross pay.  Tax of 20% on £125 is £25 so that £25 goes to the pension provider.
The MSE calculator tries to show this in its workings by adjusting the tax figure it shows and so increasing the net pay figure but this does not happen, the payslip you get has no adjustment for tax that is done directly to the pension provider by HMRC.  Your payslip will make no allowance for the tax paid on your pension that will be added later.
As an example on the calculator for this year I ran £2000 a month with no pension and with £100 pension.
Tax for no pension was £191
Tax for £100 pounds pension was £171
They then show the £20 as being the amount that HMRC pay to the pension provider.
This though never appears on your payslip that will always show the £191

The £20 is not a mistype that is the figure MSE uses as explained earlier the actual figure is £25

BODHISATTVA_2

Thank you Chrisbur for taking the time to advise (although I need to study your advice a bit more to get my head round it!).