PAYE, NI TAX Calculation explanation

mazibee

I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.

chrisbur

mazibee said:

I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.

There have been ( and may still be) pension schemes that base the contribution on salary less the Lower Earnings Limit (LEL)
However the LEL this year is £123 but was £120 last year.  
I would still recommend speaking to payroll for a full explanation.

EDIT   See next post

Dazed_and_C0nfused

chrisbur said:

mazibee said:

I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.

There have been ( and may still be) pension schemes that base the contribution on salary less the Lower Earnings Limit (LEL)
However the LEL this year is £123 but was £120 last year.  
I would still recommend speaking to payroll for a full explanation.

I think the op is referring to the auto enrolment earnings threshold limit, not NI limits.

https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/declare-your-compliance/ongoing-duties-for-employers-/earnings-thresholds

chrisbur

Dazed_and_C0nfused said:

chrisbur said:

mazibee said:

I figured that from £2076.92 - (4 x £120) = £1596.92 x 0.04 = £63.88

£ 120 might be the weekly pension limit, and above that might be the pension being deducted.

There have been ( and may still be) pension schemes that base the contribution on salary less the Lower Earnings Limit (LEL)
However the LEL this year is £123 but was £120 last year.  
I would still recommend speaking to payroll for a full explanation.

I think the op is referring to the auto enrolment earnings threshold limit, not NI limits.

https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/declare-your-compliance/ongoing-duties-for-employers-/earnings-thresholds

Yes that explains it.

mazibee

Thanks @chrisbur & @Dazed_and_C0nfused