15th June 2019 - Tax Week 11
If you are paid via PAYE, your taxes will be calculated cumulatively - this means the tax collected in one month is reliant on how much was taken the month before and so on. Use this calculator to check against your payslip - you will need a few figures from your payslip for the calculator to come back with an accurate calculation. If you don't have your payslip, use our tax calculator, which calculates on an annual / month 1 basis.
We have seen this question and think it is a fair point, as if you have all the your take home pay information right in front of you – printed on your payslip, right? Well, what if your payslip was incorrect? You may be having more deducted off your gross pay than should be, or worse still too little and may need to repay underpaid tax – which has happened in the past. HMRC have on a few occasions over the last few years, sent the incorrect tax code resulting in under or overpayments of tax from people on pay as you earn.
Checking your payslip at any point within the tax year, for any tax year since 2009 is possible with this Payslip Calculator and means you can have an easy reconciliation without going through multiple lengthy forms.
Another possibility is the option to be able to check a future payslip, providing the chance to see how exactly how much net or take home pay you will have next month. Let's say, for example, you have been working overtime in this pay period, or are expecting commission or a bonus payment. Due to the way Pay As You Earn works, the amount of tax could be unexpected compared to the previous month. Popping your details into this calculator will very quickly give you a healthy estimate of what your next pay packet will be, so you can budget well in advance.
Forecasting or predicting your next payday is really quite simple, but you will need your current (or previous) payslip as there are important figures from the payslip that need to be entered into the Payslip Calculator.
Firstly, enter the payslip date as the date you are expected to receive your next payslip. So if you received your last payslip on the 28th August, and are paid monthly, enter the payslip date as 28th September. Make sure the pay period is exactly one increment above the previous pay period. If your next payslip is in a new tax year, i.e. past the 5th April of the current year, make sure you select the correct tax year and make sure the pay period is period one.
Now, enter the basic pay you receive regularly. If you have overtime pay, underneath that box you can enter your hourly rate and then key in the hours or amounts earned. The calculator will automatically calculate the gross income or hours worked depending upon what you enter.
Any bonus or commission payments should be entered, so if you expect to be paid £500 commission in the next pay packet, enter 500 in commission; the same goes for bonus payments.
The 'Gross Income To Date' figure from your previous payslip provides the amount of money you have made up to that date. You may have to add the gross income from your last payslip to that figure and then enter it into 'Gross Income To Date'. The same goes for the 'Tax Deducted To Date'.
Once you have entered the above information, hit calculate to generate an estimated payslip for the next pay period.
Due the cumulative manner in which PAYE tax is deducted, the figures from the last payslip are used to deduce the amount of tax free income you are allowed in the selected pay period. After that has been taken into account, tax bands are divided into the frequency by which you are paid and the pay you receive is split into parts which are to be taxed at the basic, higher and additional rates of tax.
National Insurance Contributions are calculated using the exact percentage method, rather than by using tables – this will be accurate for employees but directors use a cumulative NIC calculation, which is out of the scope of this application.
To see every tax month and tax week for the tax year use our payroll tax calendar for the 2019/2020 tax year.