Do I correctly understand how end of year tax is calculated?

jones5141251

I have 2 jobs. One is paid monthly, and the pay is different each month depending on hours worked. One is paid weekly and the pay varies dramatically, with some weeks nothing being earned, others £120 being earned, and with others £1k being earned, due to how payments for work are processed. This causes my NI payments to vary dramatically between paychecks. I earn less than £20,000 a year.

At the end of the 2015/2016 tax year can I simply use the following formula to see what I should have paid in total, without having to get involved in LEL and ST and PT?
income tax: (gross pay from both jobs - 10600) * 0.2
national insurance: (gross pay from both jobs - 8060) * 0.12

with anything over this amount being something that should be refunded? e.g. if I happened to earn less than £8000 in the tax year due to starting in December I would get all my NI payments back?

CLAPTON

jones5141251 wrote: »

I have 2 jobs. One is paid monthly, and the pay is different each month depending on hours worked. One is paid weekly and the pay varies dramatically, with some weeks nothing being earned, others £120 being earned, and with others £1k being earned, due to how payments for work are processed. This causes my NI payments to vary dramatically between paychecks. I earn less than £20,000 a year.

At the end of the 2015/2016 tax year can I simply use the following formula to see what I should have paid in total, without having to get involved in LEL and ST and PT?
income tax: (gross pay from both jobs - 10600) * 0.2
national insurance: (gross pay from both jobs - 8060) * 0.12

with anything over this amount being something that should be refunded? e.g. if I happened to earn less than £8000 in the tax year due to starting in December I would get all my NI payments back?

for tax ; yes as it is based on yearly earning
for NI : no because it is based on weekly and monthly earning

agrinnall

CLAPTON wrote: »

for tax ; yes as it is based on yearly earning
for NI : no because it is based on weekly and monthly earning

And the NI is levied separately on each job. Chances are with variable earnings that the amount you have actually paid is less than the formula you have suggested, but it's very unlikely that you would be able to claim a refund anyway as that's normally only possible where an error has been made.

jones5141251

Oh well thanks... that's frustrating. If I was right then I overpaid NI by 250 last year. So I threw away £250 because I saved up my timesheets and released them at once on a regular basis for my pay weekly job.. expensive lesson learned