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Running Payroll First Time Query

Started by Robert Davies -   in UK Payroll

I'm running payroll for the first time. It's taken me a while to get here as I've had to wait for my PAYEE, and business bank account to come through, so what I had done was manually do payroll and workout deductions based on the Gov.UK tax and NI calculator and using a spreadsheet. I also paid employees an advance. Now I have Xero hooked up to HMRC and my bank, I have come across some discrepancies between my spreadsheet and Xero.

My employee worked 206.45 hours at £8.90/h, giving me a gross of 1,775.61. My spreadsheet and Xero agreed.

NI/Tax deductions for the employee were £286.23 according to Xero. My spreadsheet was £264 (this is due to my estimates using the calculator). An underpayment of £22.23 for taxes. No problem. I put in -£22.23 into Xero to correct this.

When it comes to the net, my spreadsheet and Xero disagree.

Xero tells me I need to pay £1,511.61 but I worked out using the spreadsheet £1,530.47 giving me a discrepancy of £18.86.

And when I put in Xero that I gave that staff an advance of £390, it changes the tax payable. I don't want it to change the tax!

Hope someone can help.
No one have any ideas?
 

Robert Davies  

I figured out what was wrong. I had actually added their tax up wrong.
 

Robert Davies  

Hiya Robert, glad to see you were able to nut this one out :)
 

Lauren C (Community Manager)