PAYE Tax Calculation Incorrect

hampshiremoneysaver

Hi

Not sure if this is the right board to post on so apologies if not!
I process the payroll at my work and have never had any issues with this. I'm the only employee on PAYE so a fairly simple process. I've just printed off my P60 for the year and instantly saw that the tax paid seems incorrect - underpaid by around £200.
Gross earnings £14,515.75 - tax paid £193.40.

I've looked back through every payslip and on every one the tax seems to be correct, except for one which showed a refund of £95 - I probably should have queried it at the time, but as there had been a couple of overtime payments in previous periods I thought maybe it was just correcting overpaid tax or something and the boss agreed so paid me the extra amount.
However, even if this is incorrect then the underpaid tax should only be around £100, which I can accept is an error - though still not clear why the system worked out this refund.

I've worked out there would normally be a tax amount of £1.80 for what seems to be an incorrect  payslip (paid bi-weekly and I only earn around £14500 so not much over personal allowance so tax is always small.) which would have brought the total tax paid to £290.20, yet when I work it out only yearly earnings the 20% tax comes out as £389.15.
I just can't fathom how this can be so incorrect and why the Sage Payroll system would be calculating things wrong. I don't have any irregularities/unusual circumstances, just on the standard 1257L tax code.
Any suggestions?  Or do I just wait for a letter from HMRC to say I've underpaid and then send them payslips and query with them?
Just concerned as I can't work out why Sage Payroll would be making the deductions wrong over the year and don't want it to happen again this year. Apart from the £95 refund one, it would just then seem to be a small error on every payslip that accumulates over the year.

[Deleted User]

Any pension contributions? What is the gross pay on your final payslip compared to the gross taxable pay?

hampshiremoneysaver

Yes there are pension contributions from myself and employer.
Final payslip shows:-
Total Gross Pay TD 13899.50
Gross for Tax TD 14515.75
Tax Paid TD 193.40
Earnings for NI TD 14515.75
National Insurance TD 165.80
Ee Pension TD (inc AVC) 580.63
Employers Pension TD 435.49 

[Deleted User]

Why is there a difference of £616 in the first two amounts - were you employed at this job the whole tax year?

Is there a week 54?

PS - check your pay elements on the Sage payroll. Are you certain that you have designated the overtime as both taxable and NI -able?

hampshiremoneysaver

Yes have been employed at the same job for many years. I don't know why there would be a difference between the two figures, it doesn't make any sense to me. The £616.25 would tie up with the amount for one of the weeks I had an overtime payment.

[Deleted User]

hampshiremoneysaver said:

Yes have been employed at the same job for many years. I don't know why there would be a difference between the two figures, it doesn't make any sense to me. The £616.25 would tie up with the amount for one of the weeks I had an overtime payment.

Our posts crossed - as I said - check the pay element entry for overtime. I strongly suspect that overtime is shown as a deduction rather than an addition which would explain why the gross pay is less than the taxable pay. How much was the overtime throughout the year?

Company - pay elements - payments. 

hampshiremoneysaver

I've checked the pay elements and any 'Overtime' elements all show as eligible for Tax and NI and it all seems to show the pay as overtime rather than a deduction and the figures add up, but the point where Total Taxable Pay and Total Gross Pay start to differ is from the payslip where there's a £95 PAYE refund onwards. I'm querying with Sage to see if they can shed any light but it's very odd.
Yes I think there's a week 54 - well I'm paid bi-weekly so the last payrun shows as 2-Week-27

[Deleted User]

Nothing I can add I am afraid. I still feel that there is an issue with the overtime designation within the pay elements which would make sense. Hopefully Sage can shed light. 

chrisbur

Can you give the figures as in post 3 for the payment that had the £616.25 This is sounding like it was put through as the value of some sort of taxable benefit.
Also add tax code and date of payment or week number if on payslip for both.

hampshiremoneysaver

Thanks for your help. Sage weren't particularly helpful, just said if they redo that pay run now it should be £1.80 tax and they don't know why it calculated otherwise. Guess I'll just have to wait for HMRC and then sort it out then.

[Deleted User]

chrisbur said:

Can you give the figures as in post 3 for the payment that had the £616.25 This is sounding like it was put through as the value of some sort of taxable benefit.
Also add tax code and date of payment or week number if on payslip for both.

That’s what I was getting at. I’m wondering if the tax and NI settings are set (ticked) in the pay elements.