Introduction to Income Tax and NICs Pay As You Earn and income tax
The purpose of the Taxable Pay Tables
The tables are divided into tables B, C and D (known as ‘B to D’). They are used to work out the tax due in respect of an employee’s taxable pay to date.
The taxable pay to date will be the employee’s total pay less the pay adjustment to date as shown in the Pay Adjustment Tables. (Deducting a negative pay adjustment for K, SK or CK prefix tax codes increases the taxable pay.) Calculating the tax due using the manual method and the published tax tables is explained below. Tax can also be calculated using a calculator, which involves applying the appropriate tax rate to taxable earnings in each band, although the manual method tables may be required to identify the tax due on higher earnings accurately. (HMRC no longer publishes calculator method tables.)
• For tax codes with suffix L, M, N, T or prefixes K, SK or CK
Turn to page 4 first in order to determine which tables (B, C and D) to use. (Turn to page 12 if the tax code has an S prefix or page 23 if it has a W prefix). Page 4 shows a table that applies to employees paid monthly and one that applies to those who are paid weekly. Each of the tables comprises of two columns: Month (or Week) and Column 1. ‒ Where the taxable pay to date is not more than the amount in Column 1 for the appropriate week or month, use Table B on pages 6 and 7. Scottish Table B begins on page 14 and Welsh Table B begins on page 25. ‒ Where the taxable pay to date is more than the amount in Column 1, use Tables C and D on pages 8, 10 and 11 if the employee is paid monthly, or those on pages 9, 10 and 11 if the employee is paid weekly. Scottish Tables C and D begin on page 15 if the employee is paid monthly and on page 17 if the employee is paid weekly. Welsh Tables C and D begin on pages 27 and 28.
Tax code BR Use Table B only.
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Tax codes with prefix D Use Table D only.
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Table B
If the taxable pay to date on page 4 (for England and Northern Ireland) does not exceed the figure in Column 1 for the appropriate week/month, then tax will be due at the basic rate (20%).
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