P14 question

[EchoSierra]

Hi,

On the P14 does anyone know how to work out:

1a - Earnings at the Lower Earnings Level (LEL):

1b - Earnings above the LEL, up to and including the Earnings Threshold (ET):

1c - Earnings above the ET, up to and including the Upper Earnings Level (UEL):

1d - Total of employee's and employer's contributions payable:

1e - Employee's contributions payable:

If my salary component (on which NIC is paid) is £18,997.93 what values go into 1a, 1b, 1c, 1d and 1e?

I can find out from sites like http://listentotaxman.com/ that Employer NI is £1,732.86 and Employee NI is £1,489.17 but don't know how these translate to 1a, 1b, 1c, 1d and 1e.

I have had a look at HMRC doc ca38.pdf but doesn't make a lot of sense to me.

If anyone can point me to a site or provide some advice on the formula for this it would be much appreciated.

Thanks in advance.

PS. Using National Insurance contribution (NIC) table A

[EchoSierra]

Think I figured it out.

For 2008/09

1a is £4680
1b is £756
1c is the remainder of salary £13561 (£18997 - £4680 - £756)

Employee NI is £13561 x 11% so roughly £1491.71
Employer NI is roughly £1,736.06.

Does this look right? Got the accountant working on this too so should be verified soon. Looking to get rid of him though so knowing this will help.

[Archangel]

Earnings at the LEL = £390 month = £4680
Earnings above LEL up to ET = (£453*12) - £4,680 = £756

Earning above the ET & Up to the UEL (40044) = £18,997.93 - £5,436 = £13,561.93

Employee's contributions = £13,561.93 * 11% = £1491.81
Employer's contributions = £13,561.93 * 12.8% = £1735.92

[EchoSierra]

Earnings at the LEL = £390 month = £4680
Earnings above LEL up to ET = (£453*12) - £4,680 = £756

Earning above the ET & Up to the UEL (40044) = £18,997.93 - £5,436 = £13,561.93

Employee's contributions = £13,561.93 * 11% = £1491.81
Employer's contributions = £13,561.93 * 12.8% = £1735.92

Thanks.

And as a follow-on, do these same figures then go onto the P60 for my employee(s)?

[Bengal]

Thanks.

And as a follow-on, do these same figures then go onto the P60 for my employee(s)?

The form P60 forms part of the P14. In other words when preparing the form P14, it should automatically produce the P60. In the old days (ie before electronic filing) a P14 came in three parts, the top and middle copy were sent to the then Indland Revenue and the third copy was the P60.

[scampi]

completing form P14/p60

Hi , If you look at a copy of the manual form P11, (not sure how your computer program is actually set up), the boxes that need to be completed on the P60 are indicated clearly on the P11.

However, whilst tax is calculated on an accumulative salary, national insurance is not it is calculated on a weekly/monthly amount of salary. I would suggest for any problems go straight to the horses mouth and contact the Hm Revenue and customs helpline for employers.

[EchoSierra]

Hi , If you look at a copy of the manual form P11, (not sure how your computer program is actually set up), the boxes that need to be completed on the P60 are indicated clearly on the P11.

However, whilst tax is calculated on an accumulative salary, national insurance is not it is calculated on a weekly/monthly amount of salary. I would suggest for any problems go straight to the horses mouth and contact the Hm Revenue and customs helpline for employers.

haha your advice is about 2 weeks too late and if I wanted to wait on hold for 30mins and be given useless information by HMRC I wouldn't have posted on this forum!