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Hi all, this is boring so sorry but I am sure there are some experts on here. Will keep it brief...
So on my p60 there is a total pay for the year figure and tax deducted. This is cool
There is also a table of NI contributions split into threshold's (min, primary and upper)
If I add all three threshold figures up, there is a delta of about £1k.
Question is would I not expect the sum of the threshold figures to equal total pay?
Found an example online below (if it works!)
Thanks for the help
<p style="text-align: right;">*nope immage does not work</p>
Are the threshold figures the 'boundary' between one NI % and another ? Eg (these are made up numbers not real)
6% NI up to 30 grand a year
14 % NI from 30,001 to 47,500
3% NI on 47501 and higher
So in this made up example you pay
0.06x 30,000
+
0.14 x (47500 - 30000)
+
0.03 x (total pay for the year - 47500).
In which case the 3 thresholds will not add up to total pay.
But the three seperate NI contributions should add up to the total NI contributions .
Cheers for the reply Robertajobb no I don't think so... See if this link works, see the total pay... If you add the 3 threshold figures up (which seem to be the portion of pay that is within each band), there is a £1 k ish difference between the result and total pay.
I might be missing something completely obvious!
https://indeedflex.co.uk/app-whats-new/understanding-your-p60/