# PAYE, NI TAX Calculation explanation

Forumite Posts: 397
Forumite
Hi All,

Please can someone explain me how these values of PAYE , NI and pension are are calculated.
TAX Code 1257L
NI Standard Rate contribution A
4 weekly Gross Salary = £2,076.92
Pay Period  = 30 Apr 23 - 27 May 23
PAYE = £130.00
NI = £125.52
Employee Pension = £63.88
Employer Pension  = £63.88
Net Salary =£1757.52

«13

• Forumite Posts: 11,454
Forumite
As you are on a cumulative tax code you need the previous payslip details to know why the tax is £130.

And what method is used for the pension contribution?  Net pay, RAS or salary sacrifice?

NI suggests probably salary sacrifice.
• Forumite Posts: 3,783
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What is the date of payment as opposed to the pay period, particularly as 27th May was a Saturday?
ADIOS - ES HORA DE IR 🙋♂️

(Ha sido divertido)
• Forumite Posts: 397
Forumite
What is the date of payment as opposed to the pay period, particularly as 27th May was a Saturday?

Pay Date is 02-06-2023
mazibee said:
Hi All,

Please can someone explain me how these values of PAYE , NI and pension are are calculated.
TAX Code 1257L
NI Standard Rate contribution A
4 weekly Gross Salary = £2,076.92
Pay Period  = 30 Apr 23 - 27 May 23
PAYE = £130.00
NI = £125.52
Employee Pension = £63.88
Employer Pension  = £63.88
Net Salary =£1757.52

Tax Basis is Cumulative on the current  Payslip

On the previous Payslip  the Tax code is1257L and is also cumulative

I have atatched the screen shot of Last period Payslip - no PAYE/NI was deducted

Employee pension was £9.46 on the last payslip, Gross was £775.71

Hope its helps
• Forumite Posts: 30,456
Forumite
That tax deducted is around correct - I make it £135 - for £2852.63 at week 9, the totals of £2076.92 + £775.71.  NI looks rightish for that 4 week period.  The earlier slip did not reach the 4 week NI threshold. The question is where does the YTD of £1540.76 come from on that earlier slip ?
• Forumite Posts: 11,454
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4 weekly pay, week 1, 5 and 9?
• Forumite Posts: 3,783
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4 weekly pay, week 1, 5 and 9?
Yes - that’s why I asked for the payment date. Presumably 8th April, 6th May and 2nd June.
ADIOS - ES HORA DE IR 🙋♂️

(Ha sido divertido)
• Forumite Posts: 3,960
Forumite
edited 3 June at 9:45AM
Assuming that the figures given for last payslip are taxable gross and the salary figure has had the pension deducted for tax/NI and date of payment was after 31st May then for tax....
2076.92 less pension of 63.88 gives 2013.04
Add on taxable to date from last payslip so 2013.04 plus 1540.76 gives 3553.82
Deduct tax allowance for week 12 (third 4 weekly payment) of 2903.04 gives 650.78
Tax is due on full pounds only so ignore the pence and 20% of 650 is £130
NI allowance for weekly is 968 so four weekly gives 968
So 2013.04 less 968 is 1045.04 and 12% of that is £125.40
Close but not quite must be missing something will have to look at that again but certainly not far out.

EDIT  Just to add that tax will be higher (aprox £209 assuming same gross) next payday as this payday is reduced by unused allowance from earlier two paydays.
• Forumite Posts: 3,960
Forumite
4 weekly pay, week 1, 5 and 9?
Anyone on four weekly pay is paid using allowances for weeks 4/8/12/16 etc so they end on week 52 (or 56 occasionally)
• Forumite Posts: 3,960
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edited 4 June at 9:21AM
Having tried the £2013.04 figure in the HMRC NI calculator here....
http://nicecalculator.hmrc.gov.uk/Class1NICs1.aspx
I get £125.52 the same as the OPs payroll is giving, so tried some other figures.
Weekly paid  £242    Earnings above threshold £0  NI due £0
Two weekly paid £484  Earnings above threshold £0  NI due £0
Four weekly paid £968  Earnings above threshold £1  NI due £0.12

Weekly paid £300  Earnings above threshold £58  NI due £6.96
Two weekly paid £600  Earnings above threshold £116  NI due £13.92
Four weekly paid £1200  Earnings above threshold £233  NI due £27.96
Still the extra £1 above the threshold and the extra 12p on the NI.

The only explanation I can think of is that the figures are based on the annual figure £12570  and then rounded up to the next pound.
So weekly as 1/52 is 241.73  gives 242
Two weekly 2/52 is 483.46 gives 484
Four weekly 4/52 is 966.92 so 967   (Not the 968 one would expect from 4 times the weekly figure)
Monthly 1/12 is 1047.50 so 1048
• Forumite Posts: 397
Forumite
Thanks everyone for the replies.

Please find below the screen shot of the summary of the last 3 payslips Hope it clears the things

I will be extremely thankful if someone explain:
a) NI calcuation in Finance Period 1 & 2
b) PAYE & NI Calculation in Period 3
c) What are the 4 weely allowances for PAYE and NI

Sorry for bothering and thanks again.

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