P800 Tax Calculation help

[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

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

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

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

[di30]

Re: P800 Tax Calculation help

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

[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

.....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.

[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

Its all speculation on my part Di as to when she should receive anything, its never the same for everyone.

They have warehouses full of letters to get through some times, its like pulling you hair out trying to get 1 clients refunds, and a breaze with others, you just cant judge it.

Yes that's true lol.
So no procedure as such with timescales then by the seems of it, so basically "how long is a piece of string" really lol.
Ok no probs, thank you anyway.

[SXGuy]

Re: P800 Tax Calculation help

Its all speculation on my part Di as to when she should receive anything, its never the same for everyone.

They have warehouses full of letters to get through some times, its like pulling you hair out trying to get 1 clients refunds, and a breaze with others, you just cant judge it.

[di30]

Re: P800 Tax Calculation help

She should get a letter acknowledging hers being received. and it will say how long it should take for them to respond to her complaint.

I wouldnt like to guess how long it will take, ive known it to take up to 3 months. But id say if she hears nothing, to telephone the office it was sent to and get them to confirm they received it, and when she should expect a reply.

Thank you, so a letter to confirm acknowledgement at first, wonder how long this one will take on that one?
She is aware they received it though because she has details on track and trace, so that is something I suppose.

She said she did request for the cheque and to be paid going by their usual procedures - whilst they look into the matter of the underpayment calculation matter. Not sure if that was 7 or 14 days after receiving the tax calculation letter it should be received, or if this will now go by this current letter she sent.
I did tell her to wait about 14 days from the date they received her letter, and if no cheque arrived to contact them directly.

Cheers.

[SXGuy]

Re: P800 Tax Calculation help

She should get a letter acknowledging hers being received. and it will say how long it should take for them to respond to her complaint.

I wouldnt like to guess how long it will take, ive known it to take up to 3 months. But id say if she hears nothing, to telephone the office it was sent to and get them to confirm they received it, and when she should expect a reply.

[di30]

Re: P800 Tax Calculation help

Hi

Just to say that she ended up getting a letter done (not seen it) but said she found some info online using her mum's puter in-to how she should write and word the letter that applies to her position.

Will let you know when she hears.

Have you any idea on the timescales of when she should hear something, think she said she posted it by special delivery on 20th of this month, so that would have been last Tuesday then.
I assume she should receive a letter of acknowledgement first perhaps?

Thank you.

[di30]

Re: P800 Tax Calculation help

Appreciated very much.

I know where to find you if this ever happens to us too (touch wood it won't) lol, hubby keeps a close eye on his.
Thank you.

[SXGuy]

Re: P800 Tax Calculation help

No probs Di.

I personally dont deal with tax credits so im afraid i wont be able to give any advice in that area, but anything paye related im more than happy to help.