This is my understanding Sandra. If you do the calculation on HMRCs calculator, at least then you can save the results and maybe give to the employee because if they do dispute this, at least it is not your calculation they're disputing (providing the data you entered is correct)  its HMRCs instructions/guidelines. This way, you're not having to recheck an already lengthy process.

You have no option but to apply the correct rules even though they are disadvantageous to the employees. I would, calculate their wage based on HMRCs calculator, save the results ready in a file for if disputed and process based on the calculator results. I cant imagine how hard it must be having the pressure of getting the calculation wrong and potential stress of having to re-do the calculation if the employee disputes and holds you responsible. Although it is time consuming, maybe get them to check the results beforehand before wages are submitted, at least then, even if they are upset at least they know what to expect and understand it is not you.

I have Directors who did not take a wage and now they're entitled to 80% of nil!

Thanks

Gemma.

Thanks Gemma. It's really unfortunate that this scenario will apply to a small minority. I will do as you suggest. Thanks!

No problem, I could be wrong but that's my understanding. What I did was to do one calculation online and write each question it asks, in Excel, each question in it's own column, then you can gather all the information first about each employee by having their name in a column and answer each row. This way you can do all your calculations and keep a spreadsheet for the Director to authorise before submission - protecting yourself and then only needing to copy and paste each row to each employee to also authorise/understand your workings

If you ever get questioned by HMRC you have the spreadsheet to go through, step by step also to show how you arrived at the claim figure, then(providing the data you entered is correct)  HMRC can only argue if their calculator results were incorrect. It shows you the version and date calculated etc, so you're as covered as much as you can be.

No problem, I could be wrong but that's my understanding. What I did was to do one calculation online and write each question it asks, in Excel, each question in it's own column, then you can gather all the information first about each employee by having their name in a column and answer each row. This way you can do all your calculations and keep a spreadsheet for the Director to authorise before submission - protecting yourself and then only needing to copy and paste each row to each employee to also authorise/understand your workings

If you ever get questioned by HMRC you have the spreadsheet to go through, step by step also to show how you arrived at the claim figure, then(providing the data you entered is correct)  HMRC can only argue if their calculator results were incorrect. It shows you the version and date calculated etc, so you're as covered as much as you can be.