50% income tax calculation in 24/25 tax year

Its basically calculated 50% PAYE...

screenshot 

I appreciate you sharing a screenshot and detailed information about your income tax, iain.

I understand that you've already contacted our support. However, this concern would be best handled by our payroll experts. They can arrange a screen-sharing session to review your payroll setup and investigate why the income tax was deducted at a rate of 50%.

Here's how you can contact our payroll team:

1. Hover over to the Help icon, then choose the Search tab.
2. Click Contact Us.
3. Type in a short description of your issue and concern in the box provided.
4. Click Continue.
5. Select the Chat or Callback option.

In addition, you can check out our Income Tax Calculation Guide to learn more about income tax. 

For future reference, you can generate a payroll report to get a list of your employees and a summary of your company's payroll expenses.

 
You can leave a comment by clicking the reply button below if you need clarification or information regarding income taxes. I'll always be here to assist you. 

I spent 2 hours with the payroll experts, who eventually said it must be an issue with the HMRC and then spent another hour with the HMRC who said the tax should be 0. Hence the post here and an email back to support

Hi Iainmaris

Did you manage to find away to solve this problem.

I have the same issue with someone being paid £250 a week and it has taken £125 tax 

Thanks

Hi 
I also have the same issue . But the other director of the company doesn't seem to be affected. I think its related to my tax code but i don't know what to do to resolve it . 

Has anyone managed to sort it out?

No this still isn't sorted out,  they want me to post a screenshot from HMRC telling them it's 0 tax.  Can i ask what your tax code.. mine is 1337L and it changed at the start of this tax year.  Just wondering if yours did or did not, trying to narrow down what could be the problem

It is taking the "regulatory amount" as the tax amount even though there is no tax to pay on a gross of £1047.  the only change i have made is to update the tax code since the new tax year.

Hi

On the issue I have, this has happened because there is a figure of over £12000 showing in the YTD Gross earnings, I think they have posted the P45 details in this tax year when it should have been in 2023/24 tax year.  I think I need to delete the payroll done for this year and the last week of last year to get it straight.

If you think the tax codes are correct, I would check the opening balances/YTD values and see if there are any figures in there.

Thanks

Yes my tax code changed and if I put any amount into the pay it always takes 50%. E.g. £1200 takes £600,  £5000 takes £2500

Also if I change it to one week one month tax type it works fine. But that's not what it should be. 

Same here, even put the tax code to a standard one and it still takes 50% tax  .. did you say your other director was ok? Or was that someone else’s post? Has their tax code changed or not?, I don’t have time to wait for support to sort it out

Perhaps someone from support might see this and try and help!

yes i did say the other director was fine but her tax code didn't change. I have been through all my submissions and on the to the Gov portal and i cant find anything that suggest i should be paying extra tax.

Nothing i do seems to change it from 50%. I even redid last months and its the same. 

There is clearly a problem with the system and i sat on chat with the L1 support on Friday and didn't get anywhere , But they did say the could see a problem when i was sharing my screen but couldn't fix it and they were going to pass it to L2 support for Monday. But not heard anything yet

I can imagine the hurdle you've been through trying to fix this, @iainmaris. I'll make it up to you by making sure you'll get the urgent help you need.

However, it's important for this matter to be addressed by our payroll experts. They are well-equipped to organize a screen-sharing session with you, carefully examining your payroll setup and determining the root cause of the 50% income tax deduction. Rest assured, they will dedicate their expertise to resolving this issue swiftly.

Here's how you can contact our payroll team:

1. Hover over to the Help icon, then choose the Search tab.
2. Click Contact Us.
3. Type in a short description of your issue and concern in the box provided.
4. Click Continue.
5. Select the Chat or Callback option.

Accessing reports to review your employee's details, business financials, and payroll data is effortless. To begin, take a look at this article.: View reports in QuickBooks Online Standard Payroll.

If you have further questions about your income taxes, you can comment below, and we'll respond to you as soon as possible.

I have already spoken to the L1 support they have escalated it to L2 as they couldn't resolve the issue. I am waiting to hear back today and I was told it would be looked at on Monday. 

And I spent 2 hours with support, who said it must be an issue with HMRC not with the software

Hi iainmaris, thans for getting back in touch.

I can see that your case has been escalated with our support team and further information has been requested by email. Please respond to the email at your earliest convenience so that we can proceed. Thank you!

I've still got the same issue in May… 50% tax deductions

Thanks for returning to this thread, Iainmaris. I understand the importance of the matter and I want to ensure that you receive the assistance that you need. 

I can see that this case has been escalated with our support team before and they have sent you an email to proceed with the case. However, if you are still experiencing the same issue, I want to assure you that we will do everything we can to help you resolve it.  

As the community is a public forum, I recommend that you contact our support team directly. They have the appropriate tools and expertise to investigate this case more securely and accurately. Here are the steps to get in touch with our experts:

1. Log in to your QuickBooks Online account.
2. Click Help (?).
3. Type in "Talk to a human," then press Enter.
4. Select Contact Support Team.
5. Type again Talk to a human and click Contact Support Team.
6. Choose a way to connect with us.

On the other hand, I'll be leaving this helpful resource where you'll find help articles and step-by-step instructions for specific features in QuickBooks Online Standard Payroll: Standard Payroll hub | QuickBooks Online.

Please feel free to come back to this thread anytime for further queries with tax deductions or QuickBooks in general. I'll be on the lookout for your replies. Stay safe.

I have been emailing qbo support for weeks and they are going around in circles. I'm not even sure they understand the problem even though I have sent screenshots and done everything they have asked me to do. 

I won't be long before I cancel my subscription. 

Hi ctelling, thanks for joining this thread  

We're sorry for any inconvenience being caused by the reported payroll tax calculation error in QuickBooks. 

I can see that the issue has been fully documented with our support team and I have requested for the customer success expert handling your case to provide you with an update promptly. 

If there are any other queries that we can assist you with in the meantime, please don't hesitate to get back in touch. Thank you for reaching the Intuit QuickBooks Community for support today.

did you ever get an update on this?

Hello Iainmaris, thanks for reaching out to the QuickBooks Community. If you can call our payroll team on 0808 234 5337 to report the calculation error and our senior technicians will escalate this. Thank you.