P800 Tax Calculation help

[di30]

Re: P800 Tax Calculation help

J asked me to post up the info on her P800 tax calculation (having trouble attaching) at the mo.



As they sent 2 P800 tax calculations, this was for year: (as below)

2008 - 2009 total of income and tax already paid.
PAYE Income £6904 TAX PAID £
Refund £882.51
Jobseekers All £1225

totals = £8129 £862.51

Deductions from Income after taking away deductions £8129


Tax allowances Personal Allowance £6035
Less total tax allowances £6035

Income Tax chargeable on this amount £2094

Tax on £2094 is
basic rate @ 20.00% on £2094 = £418.80

B Tax chargeable ................
= £418.80

Tax overpaid £443.71

Plus Repayment Supplement (where appropriate) £6.18
Repayment due = £449.89

.................................................. .................................................. .
Tax year 2010 - 2011

PAYE INCOME £20340 TAX PAID
Refund £2074.20


Totals £20340 £2074.20


Your income after taking away deductions £20340

Personal Allowance £6475

Less Total Tax allowance £6475


Income Tax is chargeable on this amount £13865
Tax on £13865 is
basic rate @ 20.00% on £13865 = £2773

Tax chargeable = 2773

Less other adjustments £449.89

Less total adjustments £449.89

Tax payable B minus C £2323.11

Tax underpaid D minus A £248.9

Tax underpaid £248.91
.................................................. .................................................

I dont understand how it works to be honest, but they were to use the refund due from the above calculation to reduce the underpayment on this one, so left with 248.91 to clear.

Where it states Your income after taking away deductions I note they have the gross wage amount, but she says her wage slips does show tax and to the amount shown on the chargeable amount, I told her to double check just in case.

[di30]

Re: P800 Tax Calculation help

.....oops almost forgot to mention this one, she works for a recruitment agency and there are benefits they have automatically so wonder if that made a difference in regards of the taxable benefits???
She is still with the same ones now and there's not been a break in that employment, and she still working in the same company for the agency full time. So its long term agency worker.
I noticed the part where it says "under the scheme your "net take home pay is increased" read on for more and please tell me what you think, thank you.

This below is copied from her agency's site......


Travel Scheme:
As a Mobile Worker it is expected that you will undertake assignments at various client sites throughout your employment with us.
You will automatically be enrolled into the Travel Scheme on commencement of your employment with us.
Under the scheme your net 'take home' pay is increased. This is achieved by you agreeing to give up an element of your gross taxable pay in return for tax free allowances relating to the travel and subsistence expenses you incur in travelling and undertaking work at a series of temporary workplaces, providing the assignments you undertake are not expected to last for the whole of your employment with us or for a period of two years or more.

[SXGuy]

Re: P800 Tax Calculation help

Hi Di.

Travel expenses would increase the gross and incurr tax and ni. If the employer paid it to your mate, as an agreement to cover travel costs.


In regards to subsistance, can you ask your friend, did they just pay her extra salary to cover it, or was it directly in return for receipts given to her employer? if its the latter then it should not be treated as pay or be taxed.

But the calculations look correct to me, the only thing she needs to do, is check her final payslip or P60 for the year 2010/2011 and see what the total tax deducted says.

If its less than £2773, then deduct the tax stopped from 2773, deduct the overpayment from previous year, and whats left should be what hrmc are claiming is due.

[di30]

Re: P800 Tax Calculation help

Cheers and yes will do, should hear from her sometime later, so will ask her then.
Thank you.

[di30]

Re: P800 Tax Calculation help

She will be here any min to show an example of her payslip, i will try scanning it up if i can.

[SXGuy]

Re: P800 Tax Calculation help

ok Di, make sure its her final payslip for that year, should say at the bottom.

YTD taxable income, YTD Tax.

Should also include, tax deducted from previous employment if in the same year. Without going back on the thread, i cant remember if that was the year of the P45 fiasco or not.

[di30]

Re: P800 Tax Calculation help

ok Di, make sure its her final payslip for that year, should say at the bottom.

YTD taxable income, YTD Tax.

Should also include, tax deducted from previous employment if in the same year. Without going back on the thread, i cant remember if that was the year of the P45 fiasco or not.

She arrived, but not with the paylips we need really lol, she said she will have to re-dig them out, because she will also have to include the ytd pay received from the previous employer to add on to it, as the current employer did not add this in (as stated in an earlier post), she has however brought along the 2nd payslip from when she started with the new employer in August 2010, and mislaid the first one, but it does have ytd tax etc and explanation of how they calculated with travel expenses etc.

However, my scanner is still not running properly, so until I can get it running here is the details of her pay with expenses explanation.

2nd payslip.
Pay Date 17/09/10
Pay Period 24/2011

Tax code: 0647L
Weekly Bacs

Taxable Pay to Date £597.20
Value £379.62
Gross pay £379.62

Salary Adjustment: £88.51
Taxable Pay £291.11

PAYE (Tax) YTD £69.40 Value £33.20
NI YTD £41.49 Value £19.92

Total Deductions £53.12

Tax Free Expenses (Travel Scheme) £65.92
Net Pay £303.91


Had you not been a member of the recruitment travel scheme, your pay details as follows.....
Total Gross £379.62
Taxable Pay £379.62
total deductions £80.66

Net pay £298.96

Net pay increases by £4.95

Year to date you have earned in Net pay £9.39
average cost of travel £1.18
Average price of meal £6.00.

............................................
Please note amounts shown are daily averages and vary dependent on numbers days worked, length of time away from amount - amounts should not be compared to current week expenses.

[SXGuy]

Re: P800 Tax Calculation help

oh god they dont make it easy do they lol.

Shes gonna need to give you, the total pay to date excluding tax free expenses, and tax deducted from her new employer, payslip period 52. be around end of march time or before 5th April 2011.

And shes gonna need, the total pay to date excluding tax free expenses from her old employer on her last payslip from them, as well as the tax deducted figure.

EDIT: cant make head nor tail of all that Di if im honest, Tax deducted doesnt make sense. on week 24, she would have had, £2988.46 worth of tax allowance. So as they hadnt added her P45 details, they must of treated it as a month 1 week 1 basis, so based on that, the allowance would have been around £124 per week.

Which means, had she been taxed on £597.20 tax should have been around £94.

If she was taxed on £379.62 then it would have been around £51.

Something isnt adding up right.

Would be easier to work out, if she had the last payslip from old employer, and last payslip from new employer. To hard otherwise.

[di30]

Re: P800 Tax Calculation help

oh god they dont make it easy do they lol.

Shes gonna need to give you, the total pay to date excluding tax free expenses, and tax deducted from her new employer, payslip period 52. be around end of march time or before 5th April 2011.

And shes gonna need, the total pay to date excluding tax free expenses from her old employer on her last payslip from them, as well as the tax deducted figure.

EDIT: cant make head nor tail of all that Di if im honest, Tax deducted doesnt make sense. on week 24, she would have had, £2988.46 worth of tax allowance. So as they hadnt added her P45 details, they must of treated it as a month 1 week 1 basis, so based on that, the allowance would have been around £124 per week.

Which means, had she been taxed on £597.20 tax should have been around £94.

If she was taxed on £379.62 then it would have been around £51.

Something isnt adding up right.

Would be easier to work out, if she had the last payslip from old employer, and last payslip from new employer. To hard otherwise.

Thank you for looking into this, and yes you are right, they do not make it easy.
She did say she enclosed copies to the HMRC from both employers plus p45's alongside with her letter last week.
Will get back on to her about this then and explain lol.

I can't make it all out either.

My thinking now is that the HMRC will contact the employer for further details in order for them to look into the matter.
Cheers.

[di30]

Re: P800 Tax Calculation help

Heard from her this morning and she still not received any confirmation letter, she knows it was received and did say she sent a follow on letter afterwards but still heard nothing.

And still no sign of the cheque she requested for whilst they continue to investigate the case.
There would have been a cheque owed to her on the previous one, but they did say about using it towards the one on the underpayment. (On the tax P800 letter).

[SXGuy]

Re: P800 Tax Calculation help

In that case, its time for her to ring the office and find out whats going on, at least get confirmation it has been seen and will be replied to.

[di30]

Re: P800 Tax Calculation help

I think she should ring too, she did say something about that but been working 12 hour shifts, and not got round to it, but as some time has gone by now, I think she should do something.
Any idea what time they open til on the weekends? I shall let her know.

Thank you.

[SXGuy]

Re: P800 Tax Calculation help

No idea tbh, do you know which office shes dealing with?

Might be better to wait till first thing monday morning.

[di30]

Re: P800 Tax Calculation help

No idea tbh, do you know which office shes dealing with?

Might be better to wait till first thing monday morning.

Not sure on the office, I shall ask her, think she 12 hours again next week, can't remember what she said, will tell her to try in her break otherwise.
Cheers.

[di30]

Re: P800 Tax Calculation help

She said HM Customs/HM Inspector of Taxes, PAYE as you EARN, Cardiff.