Either I am missing something obvious or the Basic PAYE tool is not working correctly? I am trying to submit an EYU for 2020/21 but as we know these no longer exist so I am doing it via a FPS. Long story short - my payroll software does not cope with EYU so using basic PAYE tool, client never realised they should have been reporting payroll so I have grossed up for Tax and NI and am now reporting the year for them. Basic PAYE tool is showing
Total pay for Income Tax: £15281.13
Total pay for National Insurance: £15281.13
Total deductions
Total Income Tax deduction: £533.35
Total National Insurance deduction: £379.86
Now unless I am totally missing something the NI deduction should be more like £693? Do you agree or have I missed something fundamental? Instead of doing a weekly payment (which would take forever) I have done a year end payment of the total on the 2nd April 2021. The NI calculated would equate to a NI threshold of £12,116 but it was only £9504 for 2020/21?
Any insight would be appreciated?
Replies (8)
Please login or register to join the discussion.
You have processed it all as if it was paid in one week.Either I am missing something obvious or the Basic PAYE tool is not working correctly? ......
Total National Insurance deduction: £379.86
Now unless I am totally missing something the NI deduction should be more like £693? Do you agree or have I missed something fundamental?
779@12% + 14319 @2% = £379.86.