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• # 109106
• Sat 13 Jun 2015 05:25 AM

Hi,

I'm not sure this is the best place to post this but the system won't let me post to members technical questions, I guess it because with ICB I'm still a student (must send in that paperwork...:))

I am trying to process the payroll for 2 directors of a small arts CIC. They have been paid £2000 so far this year and I am paying £1000 again this month. I knew there would be a tax liability and worked this out to be £69.55 each using the manual tables. However, when I put the figures into HMRC's PAYE tool it advised only £23.20...

I have doubled checked using HMRC's quick calculator tool on a different .gov page and it also shows my figure of £69.55.

Any ideas what I'm missing? I have double checked all their details and everything is correct; tax code, pay month, no other deductions etc...

Thank you in advance!

Lucy 

• keep it simple...

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• # 109109
• Sat 13 Jun 2015 09:56 AM

Hi Lucy

if they have already been paid £2000, they should have already had a tax liability in M1/2? Which would reduce the M3 liability to the figure you have got from Basic Tools.

How much tax has already been deducted from them so far this tax year?

Helen

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• # 109110
• Sat 13 Jun 2015 11:58 AM

Oh pants.... Of course!! *Insert buckets of swear words*  All my other payroll clients only pay themselves a basic of £800 to avoid tax and limit NI.

How damn cross am I with myself... Thank you for your help, I have some sorting out to do and grovelling phone calls/emails :(

• keep it simple...

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