trying to understand my p60

jackstack

Hello,

Im trying to understand my p60 as im not sure if i was overcharged or not, i would like to be able to do this manually every year correctly and accurately to confirm everything is in order without relying on employers.

Ok so i had 2 different jobs in the tax year so my p60 shows:

Previous emplyment £16124.97 Tax deducted £1573.60
This employment £4550.01 Tax deducted £359.40
Total for year £20674.98 Tax deducted £1933
Tax code 1100L

National insurance contributions:
NIC Letter : A
LEL £1568 PT £602 Employee's contribution on all earnings above PT £2380, then next to it shows £285.60 (i believe its there for the other part of employment? but there is no table field on the paper for this, its just listed on a blank background.)

Im not too sure on what the national insurance categories mean nor how they are worked out, my upcoming p60 will only have one job listed on it, how do i go about calculating it all? i read i could use the tax and national insurance tables online but not really sure how to?

Big thanks in advance!

Tom99

Not sure about the NI but your total pay less £11,000 allowance at 20% is £1935 so your tax looks right.

You can look up the NI rates here:-

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

badmemory

Most companies get this bog standard stuff right. The things to watch for are differences from the normal. Anything special that your employment gives you such as health insurance. You should be aware of the tax code your employers are using. Does it agree with what you know & any letters you may have from HMRC. If you believe anything is incorrect then ask.

[Deleted User]

Hi,

try this wee gadget.

antrobus

jackstack wrote: »

...Im not too sure on what the national insurance categories mean nor how they are worked out,...

Categories are here. A is bog standard.
https://www.gov.uk/national-insurance-rates-letters/category-letters

Darksparkle

National insurance is looked at on each pay period, not annually like tax. So if you want to check if NI is correct then you’d need to check each payslip.

The P60 will also only show NI from that employment, it won’t show previous employments as it’s not relevant.

chrisbur

jackstack wrote: »

National insurance contributions:
NIC Letter : A
LEL £1568 PT £602 Employee's contribution on all earnings above PT £2380, then next to it shows £285.60 !

LEL is earnings up to the lower earnings level, this is the amount you need to earn to qualify for different benefits. This was £112 for this year so you have had 14 pay weeks when you earned at least £112. PT is the payment threshold, the point you start to pay NI less the LEL That difference is £43 a week so for 14 weeks it is £602 Earnings above the PT is what you pay NI on at 12% so yours were £2380 and 12% of that was £285.60

jackstack

hey guys thanks for the replies, thanks for that info chris but im still having trouble figuring all this out, i tried using the same formula by multiplying by weeks on my 2015 year p60 but the numbers still don't add up, they are:

Previous emplyment £0 Tax deducted £0
This employment £21949.93 Tax deducted £2280
Total for year £21949.93 Tax deducted £2280
Tax code 1060LM1

The tax code was different, how did this change things? and im still unclear on how to use the national insurance tables to calculate for the future.

National insurance contributions:
NIC Letter : A
LEL £5832 PT £2232, earnings above PT upto and including uap £13856, Employee's contribution on all earnings above PT £1665.60.

i tried working the above out by weeks but it didn't add up ? does the tax code change things? would appreciate the help!

Thanks guys.

chrisbur

jackstack wrote: »

hey guys thanks for the replies, thanks for that info chris but im still having trouble figuring all this out, i tried using the same formula by multiplying by weeks on my 2015 year p60 but the numbers still don't add up, they are:

Previous emplyment £0 Tax deducted £0
This employment £21949.93 Tax deducted £2280
Total for year £21949.93 Tax deducted £2280
Tax code 1060LM1

The tax code was different, how did this change things? and im still unclear on how to use the national insurance tables to calculate for the future.

National insurance contributions:
NIC Letter : A
LEL £5832 PT £2232, earnings above PT upto and including uap £13856, Employee's contribution on all earnings above PT £1665.60.

i tried working the above out by weeks but it didn't add up ? does the tax code change things? would appreciate the help!

Thanks guys.

Re tax Tax code ended on a non-cumulative basis so almost certainly was changed during the tax year. Do you have the notice about this change?

Re NI Not sure what the problem is with the NI tables. Using the tables for the relevant year you look up the gross in the first column, or if the exact figure is not there the one below it and then read of the figures going across headed 1A to 1E and lastly the sum of ees and ers. Bear in mind that these tables use the mid-point between the figures to work out NI and yours will almost certainly be done using the exact percentage method, so may well be a few pence different.
If you just want to check the NI you are paying you only need the Primary threshold and the Upper earnings limit which for this year are PT weekly 157 monthly 866 UEL weekly 680 monthly 3750
NI is then 12% on earnings between PT and UEL and 2% on earnings above UEL.