How Much Tax and NI should have been paid?

wytco0

I have been trying to check the tax and NI of a young relative as I think he may have paid too much tax in 2012/13.

From his P60 I know that he earned £10278 last year.

He paid
£973 PAYE
£624 NI

Hi tax code is shown as 810L1.

Do these figures look right? I think they are a bit high. I asked him to get his pay office to check it and they said it was correct, apparently the 1 on the end of his tax code has some special meaning? Its a long while since I did any tax calcs and I don't remember anything about this.

He is single student and he started work as a job placement in June 2012.

jm2926

http://www.moneysavingexpert.com/tax-calculator/

Tell him to phone the tax office and ask

jem16

wytco0 wrote: »

From his P60 I know that he earned £10278 last year.

He paid
£973 PAYE
£624 NI

From those figures he should have paid £435.60 in tax so if this was his only income he has overpaid tax.

NI is paid on a monthly or weekly basis as opposed to annually and cannot be reclaimed.

Hi tax code is shown as 810L1.

Do these figures look right? I think they are a bit high. I asked him to get his pay office to check it and they said it was correct, apparently the 1 on the end of his tax code has some special meaning? Its a long while since I did any tax calcs and I don't remember anything about this.

He is single student and he started work as a job placement in June 2012.

He was being paid on a non-cumulative basis and his tax was only worked out on what happened in that one month and not what happened in the whole tax year.

Did he have any other income during April and May?

LittleVoice

wytco0 wrote: »

I have been trying to check the tax and NI of a young relative as I think he may have paid too much tax in 2012/13.

From his P60 I know that he earned £10278 last year.

He paid
£973 PAYE
£624 NI

Hi tax code is shown as 810L1.

Do these figures look right? I think they are a bit high. I asked him to get his pay office to check it and they said it was correct, apparently the 1 on the end of his tax code has some special meaning? Its a long while since I did any tax calcs and I don't remember anything about this.

He is single student and he started work as a job placement in June 2012.

I think the 1 at the end of 810L1 indicates that each salary payment is treated as though it was in the first week or month (as appropriate).

If all he earned in 2012-13 was £10278 I think he would have needed to pay about £345 in tax. The over-payment should be re-paid by HMRC.

Because of the 1 at the end of the code, and assuming he worked for the whole of June, it means he should have lost about £1,351 of his annual tax-free allowance when they have calculated his pay. However the P60 still suggests to me that he had over-paid tax. Was the 810L1 code applied throughout the whole time?

NI is probably correct as that is calculated on each individual payment not on a cumulative basis.

wytco0

Thanks everyone I am going to have a look at all his payslips and P60 at the weekend. I am pretty sure this was his only income in 2012/13 but I will check that as well.