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Posted Tue, 01 Nov 2022 08:19:29 GMT by Eglepj
Hi, Employer received new tax code for employee (P6 form) - K4459. Basic PAYE Tool calculates deductible taxes more than half of employee's pre-tax pay. It is not allowed to deduct more than 50%.How to solve the problem? Many thanks!
Posted Tue, 01 Nov 2022 16:29:31 GMT by Eglepj
HMRC Online Services Helpdesk has advised that the 50% limit only applies to PIT and there is no need to pay attention to the fact that the total amount of deducted taxes is 59% (PIT 50%+NIC 9%) . Is it truth?
Posted Wed, 02 Nov 2022 10:40:13 GMT by HMRC Admin 17

Hi,
 
The 50% cap applies to PAYE income tax only, not to NIC. Basic PAYE tools is working correcly .

Thank you.
Posted Wed, 02 Nov 2022 14:35:02 GMT by
Hi Eglepj,

The 50% cap applies to PAYE Income Tax only, not to NIC.

Basic PAYE tools is working correcly.

The total deducton from the gross wage can be more than 50%.

Thank you. 






 

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