Using HMRC tax calculator

If you think an employee's tax calculation might be wrong we would always advise to first check it against the HMRC tax calculator.

You need to have the below details ready and ensure you enter the correct figures.

• What type of tax code does the employee have?
  

  - English and Northern Irish
  - Scottish (tax code starts with an 'S')
  - Welsh (tax code starts with a 'C')

• Does the tax code start with any of these? 
  

  - BR
  - D0
  - D1
  - 0T
  - NT
  - K
  - None of these

• What are the numbers in the employee’s tax code?

• What is the payment date?

• How often is the employee paid?
  

  - Weekly
  - 2 weekly
  - 4 weekly
  - Monthly

• Is the period of pay on a week 1 or month 1 basis?

• What is the employee’s pay this month before deductions? - This is usually referred to as ’gross pay’.

• What is the total gross pay to date from the previous pay period? - This needs to include the Year To Date earnings including previous employment if the employee received a P45 within the same tax year.

• What is the total tax due to date from the previous pay period? - This needs to include the Year To Date Tax paid including previous employment if the employee received a P45 within the same tax year.

• What is the previous amount of tax not deducted due to the regulatory limit? - The regulatory limit makes sure employees have no more than 50% of their pay deducted.

You will then have a chance to review your answers, if required click change to make corrections. Or if all is correct click Continue to see the results.

You will be presented with the calculations. Please see the highlighted Tax due this period for the calculated amount of tax the employee should be deducted for the details entered.

If this amount is different to what our payroll system has calculated please review:

• Employee's Previous Gross and Tax amounts are correct in the system
• If the employee was migrated, please ensure their opening figures are correct in the system
• Employees total gross pay to date and total tax paid to date that you enter in the HMRC calculator are a total of all gross and tax for the current tax year.

If the above is correct but the results in our system are still different, please include the Results for PAYE tax calculations screenshot (as above) on the ticket. This would really help us investigate your tax calculation query more efficiently.