LEL on P60

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This maybe a stupid question but I would like to know about P60 that says £1326.00 is above LEL. Also in the next section it say that LEL is £264 is above the LEL. Therefore a person can earn £1062.00 this would take that person below LEL.

What is the significant of this on tax please.:T:T

nomunnofun

Absolutely none - they are National Insurance bands. Below the LEL no NIC is payable. There is also the primary and secondary threshold before the UEL is reached but perhaps this is beyond the scope of the question?

molerat

At LEL (£107 pw) NI is credited but not deducted
At PT (£146 pw) NI is deducted.

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molerat wrote: »

At LEL (£107 pw) NI is credited but not deducted
At PT (£146 pw) NI is deducted.

The person is over 65 and does not pay NI therefore why is that amount mentioned on P60:T:T

nomunnofun

When was he (I presume ) 65?

What is the table letter on the box to the utmost left?

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nomunnofun wrote: »

When was he (I presume ) 65?

What is the table letter on the box to the utmost left?

thanks for reply, apparently the letter on that box is 'C'

nomunnofun

'C' is correct - but employer's NIC remains payable. The important thing is that there is 'NIL' in the box:

'Employee's contributions on all earnings above the PT'.

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nomunnofun wrote: »

'C' is correct - but employer's NIC remains payable. The important thing is that there is 'NIL' in the box:

'Employee's contributions on all earnings above the PT'.

Thanks again for help, from your reply I understand that this is employers contributions not the employee.

Income after tax allowance is 5,060.00 what tax would he pay on that please. :T:T