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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

PAYE operation: aspects of PAYE operation - employer: tax tables

Tax Tables are available in more than one format so employers can

  • Access them from the Basic PAYE Tools
    Or
  • Access them from the HMRC Website
    Or
  • Order them from the Employer Orderline

The introduction of the Scottish rate of Income Tax from the 6 April 2016 there are separate tax table pages for

  • United Kingdom (England, Wales and Northern Ireland) taxpayers; and
  • Scottish taxpayers

Further information about the Scottish rate of Income Tax is given at PAYE100035

An employer will usually need

  • Tables A - Pay Adjustment Tables which are used for both UK and Scottish taxpayers
    And either
  • Tables B to D - UK or Scottish taxpayers
    Or
  • Calculator Tables

Tables A - Pay Adjustment Tables

These tables show the weekly and monthly pay adjustment figures. They give you the correct figure of

  • Free pay, where the code is a suffix code (including suffix codes that have an S prefix)
    Or
  • Additional pay, where the code is a K, SK code

Free pay is the total amount of pay an employee is allowed to receive free of tax up to (and including) the latest pay day. It is a proportion of the employee’s maximum tax allowance which is reflected in the code.

For example, the free pay for Week 1 is 1/52 of the maximum allowance of the code. Free pay for Week 2 is 2/52 and so on. Similarly, free pay for Month 1 is 1/12, Month 2 is 2/12 and so on.

Additional pay is an amount added to an employee’s total pay to date on any pay day when a K or SK code is used. A ‘K’  or’SK’ code is used to collect extra tax due from employees who have untaxed income (such as taxable benefits) which are not fully covered by allowances.

To use Tables A you simply

  • Turn to the page corresponding to the appropriate week or month
  • Find the code
  • Read the pay adjustment figure

Tables A - codes of 501 or more

Tables A do not show pay adjustments for codes over 500. However the correct figure can be calculated by following the instructions given in the tables

  • For codes between 501 and 1000 the instructions are given on each page of the tables themselves
  • For codes over 1000 the instructions are given separately at the beginning of the tables

Tables B to D - Taxable Pay Tables

These tables are used to work out tax due on an employee’s taxable pay on any given pay day. Taxable pay for a

  • Suffix code is total pay to date less the free pay to date
  • K or SK code is total pay to date plus the additional pay to date

The tables explain the full manual method of calculating PAYE tax deductions. Where the Scottish rate of Income Tax applies it will include an S Prefix, examples, S1100L, SBR, S0T, SK.

Calculator Tables

These tables are a simpler alternative to Tables B to D, and explain how to calculate PAYE tax deductions using a calculator.