PAYE Formula

Please?

oh dear.

Well I am available of a consultancy basis for either PAYE matters or for help with using google. Cash up front please.

The idea of being a programmer surely is that you create the formulae rather thena crib them. A couple of hints:

1) Wait half an hour for the budget to finish. 2) Use banding - split every payment into its composite bands then apply Tax or NI to each of the bands in turn. 3) Don't bother - it is *way* too complicated to do nowadays. Use a standalone package such as Sage or Qpak.

I produced a spreadsheet to calculate my tax liabilities.

Of course I was always on PAYE. :)

The same spread checks that they give me the correct Tax Code every year, an addition in the year when I found they had used incorrect figures.

Well yes, and if you had a rare form of cancer you could very quickly become the world's leading expert on it...

...because your case is unique to you and there is only one of you.

Try doing it for the population at large. They have contracted in and out of NIC, have working tax credits come and go, have K codes or pay WK1:M1 and then don't; get maternity leave or sick pay or paternity leave for all I know; take unpaid leave during March/April; pay HMRC monthly or quarterly; become Directors mid-year who pay all their NIC up front...

...try putting that in your formula :)

"Troy Steadman" wrote

Eh? "up front"? - wotcha onabout?!

Presumably the option to pay NI "normally" and then adjust to cumulative at y/e.

"Martin" wrote

But how would that be "up front" ?

Because it's possibly being paid sooner than is mandatory?

"Martin" wrote

But "up front" suggests it's paid all at the start; with the option to pay normally (as for non-directors) it wouldn't be paid any quicker than evenly through the year, would it?

[ Sorry Troy - I really shouldn't have kidnapped your sub-thread. But at the risk of breaking the habit of a lifetime and supporting your example.... ]

... Tim: How does "up front" suggest "it's paid all at the start"? On that basis, you must be assuming the ensuing years' NI is also paid in the earlier year?

In the case of directors, "evenly through the year" can be quicker or slower than cumulative. Hence (I assume) HMRC giving them the choice.

In the case of mid-year appointments, and specifically in the context of automating PAYE stuff, Troy's example is perfectly reasonable.

HTH, but there's more on HMRC's website if you need it :-)

Thanks for all ur suggestions

Exactly, so teach 'em to use a spread sheet and D-I-Themselves.

:-)

I retired from programming 16 years ago, no thanks!

We need a simpler tax system, one rate, one basic allowance before tax and no fiddles, sorry,- Tax avoidance schemes.