HMRC will advise the new tax code change from 543 to 603 which was announced in May 2008 and the date the new tax code to be applied which is expected to be September 2008. The amended tax code is entered as a new tax code on the employee details tax amendments section of the payroll file and the tax reduction is then automated at the date the new tax code is applied.
The income tax deduction calculated by the DIY Accounting payroll package is different to the inland revenue CD Rom.
Small differences can occur because the DIY Accounting payroll system has in the past used the revenue manual tax tables whereas the inland revenue employers CD Rom use a percentage calculation. In fact the manual tables jump in pounds and tax tables can increase by four pounds between different look up rates which can create small differences.
In the current financial year many of the financial income tax and national insurance calculations have been changed in the DIY Accounting payroll calculations to a mathematical percentage basis. Differences can still occur where the subject of the calculation is rounded to ignore the pence.
All these differences are minor and immaterial and adjust themselves since tax is calculated on a cumulative basis. HMRC percentage calculations also differ from the calculations using paye look up tables for similar reasons.
Employee gross pay was entered and no national insurance contribution was calculated.
The national insurance contribution table applied is shown in the column to the left of the employees name on the payroll sheet and you will probably see the letter C when because this employee is of working age and not a second employment the national insurance table letter should be A. Check the date for both for this employee which may have been omitted or entered wrongly.
Income tax deducted for my employee who is on a normal tax code was much higher than normal.
The income tax code column to the left of the employees name on the payroll sheet may appear as zero which should show the tax code. To resolve the tax code check the employee starting date has been entered and the numerical value of the tax code in the employees details and the date that tax code should be applied.
When I try to enter wages on the payslips a dialogue box appears with the message that the payslip spreadsheet is protected.
No entries are required to the payslips file. All entries are automated from the payroll file and the protection prevents corruption of the formulae in the payslip file. The entry on the payslip file can be changed by entering the required gross pay on the payroll workbook and the payslip will automatically update itself from there as part of the paye system.