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My PAYE tax is wrong

< 1 min read

Try the following steps:

  1. Confirm the tax calculation using the HMRC tax calculator: https://www.gov.uk/guidance/work-out-an-employees-income-tax
    • Tax code: can be found on the payslip
    • Payment date: is the date of the pay run
    • How often is the employee paid: frequency
    • Is the period of pay on a week 1 or month 1 basis: The payslips will show W1M1
    • What is the employee’s pay this month before deductions?: This can be found on
      • the previous payslip
      • Employee > Update > Details > System > View State and look at the PAYE, e.g. “Tax paid.YTD”: 654.2, “Taxable pay.YTD”: 5000
    • Previous Pay and Tax: If your pay includes Previous pay and Previous tax from another job – whether from a P45, or sent by HMRC as a P6- then you must also add those figures to the current employment year-to-date YTD figures when using the HMRC calculator.
  2. Follow the steps at https://paiyroll.com/kb/my-deduction-nic-paye-is-wrong/ to find the root of the problem.

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