how much tax?

Question

i will be starting work soon and am on 120 pounds a week, does anyone know how much tax and ni i will have to pay

Answer 1

If youare just strating out in the world of work I would expect you to be on a tax code of 503L and Natioanl Insurance letter A

National Insurance (the easy bit)
You can earn £96.92 per week before you pay NIC. Anything above this will be charged at 11%. Therefore
120.00-96.92 = 23.08 x 11% = 2.54 NIC Per Week

Tax
This is more complicated. To calculate it each week the system looks at how much earnings you have earned at that point in the tax year, year to date. It then looks at how much tax would be due on that at that time in the year and you pay what is due. What you will probably find is if you start work now, (and you haven't had a job since the last 6 april) you won't pay any tax to start with because you will have april, may and june tax code allowances which you havent used yet. As the months get on you will eventually hit the limit and pay tax at around 10%. If your earnings increase significantly you will hit the 22% barrier.
So I would have thought to start with you will take home around £117 approx, as the months go on you would take home around £114 so not too bad

Answer 2

Assuming your tax code is the normal 503L and that you aren't paying into a pension from your wages. It would roughly be tax of £2.32 and NI of £2.86. Therefore each week you would receive about £115.

But if you are only just starting work and haven't worked in April, May or June this year yet your tax might be even less per week but if you are still receiving £115 in a couple of months ask your employer whether you are due any tax refunds, if they aren't very helpful ask your local tax office, they might tell you to wait until next April but if you have paid too much then you should wait and get it back.

Answer 3

Virtualy nothing, everyone get's £5,035 tax free earnings per year, this is divided by 52 weeks (or 12 months) giving you aprox £90 tax free per week. After that about £2,000 per year is taxed at 10%, so aprox £38 per week is taxed at that. So you should be paying about £3, not too bad. I however don't know how NI is worked out.

Most important is you have to let the tax office know if you have worked before, if you don't you'll be put on an emergency code and have to pay more tax. Your employer should give you a form P46, once you complete it you should be on the right tax rate, if more information is needed you will be sent a form P91 asking what you have been doing in terms of work since 6th April, the start of the tax year, to get you on the right tax rate.

Answer 4

assuming you are not a student and are not a married man your single person's tax allowance is probably about 5k a year or £100 per week so you will pay twenty per cent on the rest which os probably about a fiver;however your n.i. contribution or stamp is ten per cent levies on all your pay and would be twelve pounds;therefore I estimate you will pocket just over one hundered pounds all this int he u.k. of course
if your rent or expenses or dependents are high you may be entitled to help such as council help wiht your rent;if you are self employed you may be able lto escape payment completely by offsetting your expenses against tax;but beware self employment and tax payment at the end of the year;once you get behind yo u never catch up
also your rate is quite low but you have to start somewhere especially these days so work hard and qualify and become more useful to hte boss so he increases your pay

Answer 5

tax is usually about 22% of anything you earn over about £4-5K so the money you earn over that amount is taxable at what ever code they put you on. call the inland revenue to find out if you're unsure and to make sure you get the correct tax code to your employer because if you don't they might 'emergency tax' your earnings (and its a lot of tax they take off) which you have to claim back at the end of the financial year which would be a bugger.

Answer 6

It depends upon your tax code and tax basis. However, as a very rough guidline, you usually lose about 1/3rd

Answer 7

doesn't matter what you earn, you loose at least 19% to taxes. it could be a little more.

Answer 8

Very little actually, you don't earn enough.

(It wont be as much as 1/3rd!)