If you are in taxed under the PAYE system of deducting taxes and national insurance, then the amount deducted from your pay packet is deduced using the information held within your tax code. However, this is not the only factor deciding what ultimately ends up in your bank account.
Pay calculated using PAYE is worked out cumulatively, this means it is based upon your other earnings within the same tax year, tax paid in the same tax year and remaining tax-free allowances. The tax-free allowances and tax rates are provided by the tax code. Other information is 'totted up' on each pay cycle and used when calculating the next payroll.
Whether you are paid monthly, 4-weekly or weekly our new What Will I Be Paid pay calculator will estimate the payslip for any given payday.
It figures out what tax year the payday provided falls into and then automatically figures out where in the regular pay cycle it should be. If you provide a regular gross pay and a tax code, then that is all it will need to show you an estimated payslip for the date you provided. If you want more accuracy, or you have had fluctuating income within that employment/income source, then you can tick the option to provide a few figures from your last payslip. Namely, the tax paid so far and the gross income so far.
The calculator will also support company director's being paid under PAYE, and this includes an update to our regular payslip calculator to allow NICs to be calculated using the company directors' method.
Try out the new What Will I Be Paid calculator - we will continue to make tweaks and iron out any bugs that are encountered.