use excel to calculate student loan repayment

You should enter the outstanding disguised remuneration loan balance into the ‘Gross pay’ field. You will now need to enter this information into the tax calculator in order to get the income tax due.

outstanding disguised remuneration loan balance.

if PAYE should be operated on a week/month 1 basis, for example if you are reporting an outstanding loan balance for a former employee.

Using the PAYE 2018 to 2019 tax calculatorīefore you start using the tax calculator you will need the following information: If the employee has a pay period other than monthly, follow the guidance at section 1.7 in the employer help-book CWG2 (2018 to 2019). You’ll need to carry out a revised month 12 calculation on £56,000. The employee has an outstanding disguised remuneration loan amount of £20,000. Where a cumulative tax code was in operation for the employee at month 12, you need to carry out a revised month 12 calculation on the total year-to-date pay for tax year 2018 to 2019.įor example, the previously submitted total year-to-date pay for tax year 2018 to 2019 at month 12 was £36,000. For Income Tax use the gross pay minus any non-taxable deductions, this is referred to below as the ‘starting pay’ for PAYE Income Tax purposes. You must then recalculate the deductions due for that pay period.įor National Insurance contributions and student loan deductions use the gross pay. To calculate the deductions due on your employee’s outstanding loan amount, you’ll need to add the loan amount to their pay for the final pay period in the tax year 2018 to 2019. The loan charge arises on 5 April 2019 in the final pay period of 2019.

You’ll need to work out the National Insurance contributions due using a weekly earnings period and you should treat this balance as an irregular payment. When reporting an outstanding disguised remuneration loan balance and deductions due for an employee who has left, follow the guidance on paying an employee after giving them a P45. If your current payroll software product cannot perform these calculations for you, you’ll need to use the PAYE and National Insurance contributions calculators or the manual tax, National Insurance contributions and student loan tables. You may also need to calculate these deductions if you are using your normal payroll software to submit an EYU. You’ll need to calculate the tax, National Insurance and student loan deductions due. If your payroll software provider has not made the changes necessary for you to correctly report the outstanding disguised remuneration loans, you should use HMRC’s Basic PAYE Tools ( BPT) to send an Earlier Year Update ( EYU) submission.

Use excel to calculate student loan repayment