What does this P60 reconciliation do?

It recomputes the income tax due on your P60 gross pay using the current personal allowance and tax bands, then compares that figure with the tax actually deducted shown on your P60. A difference can mean an employer error, an unusual tax code or other income.

How is the personal allowance taper applied?

The standard personal allowance is reduced by £1 for every £2 of income above £100,000, so it is fully withdrawn by £125,140. The tool applies this taper before working out the bands, which is why high earners face an effective 60% marginal rate in that range.

What tax bands does it use?

It uses the 2025/26 England, Wales and Northern Ireland bands: 20% basic rate up to £37,700 of taxable income, 40% higher rate to £125,140, and 45% additional rate above that. Scotland has different bands and is not modelled here.

Why might my P60 tax differ from this estimate?

Differences are common and not always errors. A non-standard tax code, benefits in kind, a mid-year job change, pension contributions or other taxable income can all move your real liability away from this simple gross-pay calculation.

Is this a substitute for HMRC?

No. This is a quick consistency check on a single P60 using standard assumptions. For a definitive position check your Personal Tax Account, your tax code notice, or speak to HMRC or an accountant — especially if you have multiple income sources.

UK P60 Income Reconciliation Calculator

The UK P60 Income Reconciliation Calculator checks the tax deducted on your P60 against HMRC’s PAYE rules. It recomputes the income tax that should have been paid on your gross pay using the personal allowance and the current tax bands, then flags whether your employer over- or under-deducted.

How it works

The tool computes income tax for England, Wales and Northern Ireland using the 2025/26 figures:

Personal allowance: £12,570, tapered by £1 for every £2 of income above £100,000 (gone by £125,140).
Basic rate: 20% on taxable income up to £37,700.
Higher rate: 40% on taxable income from £37,700 to £125,140.
Additional rate: 45% above £125,140.

allowance = max(0, 12,570 - max(0, gross - 100,000) / 2)
taxable = max(0, gross - allowance)
tax = 20% up to 37,700 + 40% to (125,140 - allowance) + 45% above
difference = P60 tax deducted - computed tax

A positive difference means more tax was deducted than the rules require (possible refund); a negative difference means too little was deducted (possible bill).

Tips and notes

This models a standard 1257L-style position. A different tax code, benefits in kind, or pension contributions will legitimately change the answer.
Scotland has its own bands and rates — this tool does not cover them.
A difference does not prove an error; it is a prompt to investigate, not a final figure.
Always cross-check with your Personal Tax Account before claiming a refund or expecting a bill.