Using the HMRC Tax Calculator

For the Employer

If you are unsure of a tax calculation you can use the HMRC Tax Calculator and data off the Payslip Record.

To use the HMRC Tax Calculator:

1. Navigate to the Payroll Record you are querying the tax for, hover over More in the top right corner, right click HMRC Tax Calculator and open in a new tab
   
   

   Open

   

2. This will open the PAYE Tax Calculator Tool from HMRC - you will see the fields that need to populated and complete these based on the information held on the Payslip and Last Payslip.

   Open

   

3. From the current Payslip Record’s Primary Info you will need:
   The Tax Code and whether it is W1/M1
   The Period - Monthly/Weekly
   Taxable Pay for the Period
   Pay Date

4. To open the Last Payslip, when on the current payslip record right click on the Last Payslip link and click open in a new tab

   
   From the Last Payslip Totals Tab you will need:
   Total Pay To Date
   Total Tax Due

   
   
   

5. You can then populate the HMRC PAYE Tax Calculator. In this example the Total Tax Due was negative so this is 0

    

6. When you click Next this gives the expected outcome of Tax Due = 242
   
   

For the Employee

If your employee is questioning the tax that they have paid but you agree with the calculation you can direct them to the HMRC PAYE Tax Calculator and they can use the information on their payslips.

From their current payslip (this example shows the ICS Enhanced Payslip UK) they will need their:

The Tax Code and whether it is W1/M1
The Period - Monthly/Weekly
Taxable Pay for the Period
Pay Date

From their Last Payslip they will need their:

Taxable Income TD
Tax Due TD

They are then able to complete the calculator in the same way using this information.

Useful Links

HMRC PAYE Tax Calculator

HMRC Rates & Thresholds