HMRC calculator issues resolved

05 May 2021

The CIPP recently reported that there were issues with a couple of the HMRC calculators that are available online to help employers with various payroll calculations. These problems have now been fixed.

The calculator for use when establishing National Insurance (NI) for company directors has been amended so that it now works correctly. The previous issue related to incorrect calculation of employer NI contributions where the total cumulative pay was higher than the Secondary Threshold of £8, 840 (ST) for tax year 2021-22, at which point employers start paying employer NI contributions, but lower than the Primary Threshold (PT) of £9,568 per year. This issue has now been rectified, and the calculator is producing the correct figures for employer NI.

The Company Car and Car Fuel Benefit calculator has also been fixed. Previously, where the figure provided via an Optional Remuneration Arrangement (OpRA) was higher than the cash equivalent of the calculated car benefit, the tool was failing to replace the car benefit charge with the higher OpRA figure. This issue has now been resolved, and the calculator is producing the correct results.

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