Tax And NI Errors

NI and Tax Queries

These are very few in number and usually due to user error.

Often, the figures being queried are correct.
(Note: This can be proved using HMRC’s online calculators – use Firefox/Chrome)

 

Tax calculator: https://payecalculator.hmrc.gov.uk/PAYE0.aspx

For this, you will need to know the following:

a) Employee’s Tax Code
b) Pay Period (e.g. monthly/weekly)
c) Whether the employee have the Week 1 marker set
d) Taxable Pay for the Period
e)Taxable Pay for the Year Prior to the Period
f) Tax Paid so far this Year
g) Payment Date

 

NI Calculator: https://nicecalculator.hmrc.gov.uk/Class1NICs1.apx

For this, you will need to know the following:

a) Pay Period
b) Gross Pay
c) NI Letter

 

Things that may be problematic:

a) Employee’s Pay – may not have been recalculated since a change was made.
b) Marking the employee as Director will affect the NI, as Colleges do not have directors.
c) The Parameters must be put in correctly:

  • Tax Bands on the Template
  • NI Bands on the Template
  • NI Rates on the main Parameters

d) The employee is on the correct Payroll, (i.e. perhaps been put in weekly not monthly)
e) Check NI and Pay tabs of Payroll Details, to check the NI Category and Tax Details are correct.
f) Whether any employees payments at set in the Working File, as to use last month’s allowances.
g) Whether a Tax or NI override has been entered against the employee for this period.

 

It is recommended to then, with permission, check the messages that have been generated for the employee – but this may not be possible.