NI - what documents /figures should you have when leaving?

[ladymuck]

Actually just been readind this:
https://www.thisismoney.co.uk/money/...orked-out.html

I would suggest that it is both cumulative AND threshold based. In the example given the £2K/month exceeds the threshold and is therefore added to an annual total.

Why oh why do they make these things so horrendously complex!?

Yeah I was simplifying for the purposes of saying why it's not on the P45. Your new employer will deduct NI based on thresholds not on the cumulative amount paid, unlike income tax for which they need to know what's been paid for the year to date.

[MrC]

P45 only summarises tax, not NI as the calculation method for NI isn't cumulative, it's threshold based.

Actually just been readind this:
https://www.thisismoney.co.uk/money/...orked-out.html

I would suggest that it is both cumulative AND threshold based. In the example given the £2K/month exceeds the threshold and is therefore added to an annual total.

Why oh why do they make these things so horrendously complex!?

[MrC]

P45 only summarises tax, not NI as the calculation method for NI isn't cumulative, it's threshold based.

Thanks for clarifying!

[ladymuck]

P45 only summarises tax, not NI as the calculation method for NI isn't cumulative, it's threshold based.

[MrC]

All the info in your P60 is a summary of the individual payslips. Personally, I copy the info from each payslip into an Excel file, then I can verify that the NI calculations are correct. NB The various thresholds (LEL, PT, etc) are different depending on whether you get paid weekly or monthly.

Regarding your state pension, you can check the current status (qualifying years) at the gov.uk website:
Check your National Insurance record - GOV.UK (www.gov.uk)

Ah i see so its just a summary of the contributions vs various thresholds. I just read something that said that as long as you earn over about £8K (think the LEL) then you will get the full tick in the box for the qualifying year. I would have done in this case so guess it wouldn't matter what the figures were for my first job.

Re checking the status it isnt showing as available for the year just gone yet - any idea how long it might take to update?

I do find it a bit odd though that the p60 is end of year and aggregates the tax for the whole year but only covers NI for the role you hold at the end of the year ie "National Insurance contributions in this employment"

[hobnob]

All the info in your P60 is a summary of the individual payslips. Personally, I copy the info from each payslip into an Excel file, then I can verify that the NI calculations are correct. NB The various thresholds (LEL, PT, etc) are different depending on whether you get paid weekly or monthly.

Regarding your state pension, you can check the current status (qualifying years) at the gov.uk website:
Check your National Insurance record - GOV.UK (www.gov.uk)

[MrC]

So it's back to the brave new world of being an employee for me of late.

I worked for one company for a while and then worked under another sister company later in the same tax year.

The sister co issued me a P60 at year end. After chasing I got a p45 out of the original company.

The P60 gives me not only tax paid but various national insurance figures (UELs , LEL, PT etc) for the second employment.

The P45 gives me tax info for the 1st employment but nothing on NI.

Am i missing some paperwork from the original company stating NI figures or doesn't it matter?

I always find NI incredibly boring/complicated and have never really fully understood all of the subtleties but I wouldnt like to think I lost elligibility to a future state pension etc if something wasn't correctly reported.