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Overpaid National Insurance contributions?

For the last tax year I had a gross income of £11046.15. My P60 shows I had £666.95 deducted in NI contributions with a tax code of 603L. Some online tax calculators show it should be £617.23. Is this the correct amount?

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    NIC is calculated on a weekly or monthly basis, it is not cumulative like tax. You would need to calculate each week/month individually from your payslips.
    £705,000 raised by client groups in the past 18 mths :beer:
  • You pay 11% on earnings over the primary threshold. For FY 2008/09, this was £105 per week, matching the tax code of 603L.

    If you multiply the £105 by 52, you get £5,460.

    If you deduct this from your £11,046.15 you get £5,586.15.

    11% of this is £614.47 which is near enough the lower figure. So yes, it seems that you have a case. Some months may have 5 week's payment, others 4, but it should even out over the year I think.

    Perhaps your payroll department/person can explain it to you, even if there is a good reason it will put your mind to rest.
    Who having known the diamond will concern himself with glass?

    Rudyard Kipling


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