Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • flea72
    • By flea72 14th Jun 19, 11:09 AM
    • 5,282Posts
    • 5,273Thanks
    flea72
    P60, tax and payslips
    • #1
    • 14th Jun 19, 11:09 AM
    P60, tax and payslips 14th Jun 19 at 11:09 AM
    I have 2 different roles within the same company and am paid a different rate for each role (i work one role 3 days, the other 2 days, and get separate payslips for each role). my payslips show my basic pay for each role (annual salary divided by 12) and this figure is correct. However the figure on my P60 is less than the total of both roles.

    I also get enhanced pay for any unsocial shifts i work, so i always earn more than my basic.

    I do find my payslips confusing, as they show tax/ni and pension contributions on both, but i cant see how they arrive at the figures. Ie one payslip will show i earned 1300 and they took 50 tax, but the other payslip shows i earned 900 and they took 200 tax. Pension and NI are same as tax, with differing amounts taken across both payslips. Student loan payments are never split, they comes off one or the other

    Is it just a case of me totalling my payslips, to see if the correct amounts are being taken? But i dont get why my P60 figure is less. My tax code is 1232L

    Tia
Page 1
    • Pennywise
    • By Pennywise 14th Jun 19, 11:18 AM
    • 12,048 Posts
    • 23,703 Thanks
    Pennywise
    • #2
    • 14th Jun 19, 11:18 AM
    • #2
    • 14th Jun 19, 11:18 AM
    If you get two payslips each pay date, then you should get two P60s, one for each.
    • flea72
    • By flea72 14th Jun 19, 11:26 AM
    • 5,282 Posts
    • 5,273 Thanks
    flea72
    • #3
    • 14th Jun 19, 11:26 AM
    • #3
    • 14th Jun 19, 11:26 AM
    I only have one P60, and the figure on there is way over what i would have earned in each job individually, but less than what i would have earned in them jointly.

    The P60 shows 27k. My basic pay is 16k and 12k. I get about 100-150pm in unsocial enhancement across both jobs
    • flea72
    • By flea72 14th Jun 19, 11:28 AM
    • 5,282 Posts
    • 5,273 Thanks
    flea72
    • #4
    • 14th Jun 19, 11:28 AM
    • #4
    • 14th Jun 19, 11:28 AM
    Actually i have 2 P60s, and they both show the same figures and both are titled ‘replacement P60. These are the only P60s i have for tax year 18/19
    • Dazed and confused
    • By Dazed and confused 14th Jun 19, 11:35 AM
    • 5,388 Posts
    • 2,860 Thanks
    Dazed and confused
    • #5
    • 14th Jun 19, 11:35 AM
    • #5
    • 14th Jun 19, 11:35 AM
    As far as the tax side of things is concerned your P60 is not meant to show your salary.

    It shows your taxable pay. Which can be significantly different to your salary.

    For example if salary was 30,000 but you contribute 10% to a "net pay" pension scheme your P60 would show taxable pay of 27,000, not 30,000.
    • agrinnall
    • By agrinnall 15th Jun 19, 7:27 AM
    • 22,820 Posts
    • 18,841 Thanks
    agrinnall
    • #6
    • 15th Jun 19, 7:27 AM
    • #6
    • 15th Jun 19, 7:27 AM

    I do find my payslips confusing, as they show tax/ni and pension contributions on both, but i cant see how they arrive at the figures. Ie one payslip will show i earned 1300 and they took 50 tax, but the other payslip shows i earned 900 and they took 200 tax. Pension and NI are same as tax, with differing amounts taken across both payslips.
    Originally posted by flea72

    This is almost certainly because all or most of your personal allowance is applied to one job, leaving the other to be fully taxed at your marginal rate. However, we'd need to know the tax codes that have been applied to both jobs to confirm it.



    Pension and NI are likely to be correct as they should be different if you earn diffferent amounts, although again real figures would be required to ensure the deductions are correct (there is a potential complication with NI where it's possible that it could be levied on the combined total earned in both jobs but someone with more knowledge than me would need to advise whether that might be the case).
    • chrisbur
    • By chrisbur 15th Jun 19, 7:56 AM
    • 3,263 Posts
    • 1,776 Thanks
    chrisbur
    • #7
    • 15th Jun 19, 7:56 AM
    • #7
    • 15th Jun 19, 7:56 AM

    I do find my payslips confusing, as they show tax/ni and pension contributions on both, but i cant see how they arrive at the figures. Ie one payslip will show i earned 1300 and they took 50 tax, but the other payslip shows i earned 900 and they took 200 tax. Pension and NI are same as tax, with differing amounts taken across both payslips. Student loan payments are never split, they comes off one or the other



    Tia
    Originally posted by flea72
    Rough guess your tax code is being applied to the 1300 and this is being reduced a bit by net pay arrangement tax; but that would leave the 900 being taxed at BR and 200 tax is not right for that. I suspect you are just giving rough figures but if you want an explanation of what is happening you have to give exact figures.
    From last payslips for each job
    Total gross
    Taxable gross
    Tax paid
    Tax code
    Week/month number
    Taxable gross to date
    Tax paid to date
    • flea72
    • By flea72 15th Jun 19, 9:16 PM
    • 5,282 Posts
    • 5,273 Thanks
    flea72
    • #8
    • 15th Jun 19, 9:16 PM
    • #8
    • 15th Jun 19, 9:16 PM
    Payslip 1. Pay slip 2
    Gross 1427.19. 1060.62
    Taxable 1325.86. 961.98
    Tax paid 48.80. 192.49
    Tax code 1297L. 1297L
    Tax period 2. 2
    Gross todate 2983.41. 2255.62
    Tax paid 124.60. 409.20


    I would say payslip 1, is my main job, as it is more hrs than payslip 2
    • chrisbur
    • By chrisbur 15th Jun 19, 10:00 PM
    • 3,263 Posts
    • 1,776 Thanks
    chrisbur
    • #9
    • 15th Jun 19, 10:00 PM
    • #9
    • 15th Jun 19, 10:00 PM
    Payslip 1. Pay slip 2
    Gross 1427.19. 1060.62
    Taxable 1325.86. 961.98
    Tax paid 48.80. 192.49
    Tax code 1297L. 1297L
    Tax period 2. 2
    Gross todate 2983.41. 2255.62
    Tax paid 124.60. 409.20


    I would say payslip 1, is my main job, as it is more hrs than payslip 2
    Originally posted by flea72
    It looks like you have given gross to date not taxable gross to date.
    Certainly tax for month 2 is looking Ok assuming your tax code is correct. Your allowance is all against the first payment and the second is at about basic rate, though the figure given is a bit out I would not expect to see an odd 9p on the end. With taxable gross to date figures can check exactly.
    Is the tax code showing on payslip 2 definitely 1297L
    Forgot to ask for NI figures to check them.
    • Marcon
    • By Marcon 15th Jun 19, 10:48 PM
    • 1,263 Posts
    • 1,002 Thanks
    Marcon
    Why not ask the people who do your payroll? It would save a lot of time and you should get an explanation pretty quickly especially if you ring/see them in person (if they are on site where you work). Sometimes the answer is nothing more sinister than 'error' - in which case there's little chance of anyone here being able to spot that for you.
    • Savvy_Sue
    • By Savvy_Sue 16th Jun 19, 12:17 AM
    • 40,089 Posts
    • 37,453 Thanks
    Savvy_Sue
    Is the tax code showing on payslip 2 definitely 1297L
    Originally posted by chrisbur
    Another one to wonder that: having that on both jobs would give you a tax free allowance of nearly 26,000 per year, which is definitely not quite right!
    Still knitting!
    Completed: TWO adult cardigans, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees, 2 sets of handwarmers, 1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 3 balaclavas, multiple hats and poppies, 3 peony flowers, 4 butterflies ...
    Current projects: pink balaclava (for myself), seaman's hat, about to start another cardigan!
    • chrisbur
    • By chrisbur 16th Jun 19, 1:04 AM
    • 3,263 Posts
    • 1,776 Thanks
    chrisbur
    Another one to wonder that: having that on both jobs would give you a tax free allowance of nearly 26,000 per year, which is definitely not quite right!
    Originally posted by Savvy_Sue
    The OP is not being given this tax allowance on both payslips so either a mistake giving the details or perhaps due to the way the employer is calculating tax. Just a guess but perhaps they work out tax on first payslip, then on sum of both payslips and deduct tax taken on first payslip to get tax for second payslip.
    At the moment the really curious thing is the tax of 192.49 on second payslip; at this level of earnings I would always expect to see a tax figure exactly divisible by 20p.
    • flea72
    • By flea72 16th Jun 19, 8:05 PM
    • 5,282 Posts
    • 5,273 Thanks
    flea72
    It looks like you have given gross to date not taxable gross to date.
    Certainly tax for month 2 is looking Ok assuming your tax code is correct. Your allowance is all against the first payment and the second is at about basic rate, though the figure given is a bit out I would not expect to see an odd 9p on the end. With taxable gross to date figures can check exactly.
    Is the tax code showing on payslip 2 definitely 1297L
    Forgot to ask for NI figures to check them.
    Originally posted by chrisbur
    Taxable gross todate 2786.99 and 2045.84

    Sorry yes a typo. 192.40, not 192.49

    Tax code is the same on both payslips

    NI 84.98 and 127.28 (on payslips). Or contributions todate 187.29 and 270.68

    I pay pension at 7.1% and 9.3%

    Thanks everyone for help so far
    • chrisbur
    • By chrisbur 17th Jun 19, 9:03 AM
    • 3,263 Posts
    • 1,776 Thanks
    chrisbur
    Have checked through these figures and can confirm that they are 100% correct for tax and NI. There are a couple of small points you might like to check up on but cover them at the end. The fact that the same tax code is quoted on both slips suggested to me that the method of calculation is to work out tax/NI figures for payslip 1, then to add payslip 1 and payslip 2 together to work out tax/NI figures and from these total figures deduct the figures for payslip 1 to get the figures for payslip 2. This is the advised method for NI and works for tax as well.
    The following is the calculations based on this method
    Tax
    This is done on taxable gross, this way you do not pay tax on your pension contributions, known as the net pay arrangement.
    Payslip 1 taxable gross to date 2786.99
    Tax allowance for code of 1297L is 12979.08 for the year which is 2163.18 for month 2
    The tax allowance has to cover a band of allowances from in this case 1297 up to 1299 so everybody gets the top allowance for PAYE which is then increased a little to make it divisible exactly by 12 (same for each month)
    So 2786.99 less 2163.18 gives 623.81 on which tax is due at 20%
    Tax at this point is only done on full pounds so 20% of 623 is 124.60
    Adding payslip 1 and 2 together we have taxable gross of 2786.99+2045.84=4832.83
    4832.83 less the tax allowance of 2163.18 is 2669.63
    So 20% tax on 2669 is 533.80
    Less the 124.60 paid on payslip 1 gives 409.20

    Which is exactly the same tax paid to date as you would have paid if this had been the earnings for one job and everything on one payslip.

    NI is a bit different as this is due on your gross not taxable gross, and is worked out month by month not on year to date figures.
    You get 719 a month on which no NI is due and then pay at 12% on full figure no dropped pence this time.

    So payslip 1
    1427.19 less 719 = 708.19

    12% of that is 84.98

    Add payslip 1 and 2 together you get 2487.81 less 719 is 1768.81

    12% of that is 212.26
    less 84.98 paid on payslip 1 and you get 127.28

    The sum of your two NI figures is exactly the same as you would have paid if this had been the earnings for one job and everything on one payslip.

    Figures do look a bit funny when presented as two payslips but your tax NI are being calculated as if it was only one payslip and it is just the split where you seem to pay a lot on the smaller payslip that makes it look a bit strange; but they are spot on.

    I notice that your tax code is not the standard tax code but just a little higher hopefully you know why this is, perhaps some expense you are able to claim for.

    Comparing total gross with taxable gross for payslip 1 the pension difference looks a bit different to 7.1% Perhaps some small payment that is not pensionable?
    Last edited by chrisbur; 17-06-2019 at 9:05 AM.
    • flea72
    • By flea72 17th Jun 19, 11:26 AM
    • 5,282 Posts
    • 5,273 Thanks
    flea72
    Tax code Expenses - uniform washing and professional fees

    Thank you so much. It all looks so much clearer now
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

186Posts Today

2,260Users online

Martin's Twitter