2006-09-11 23:54:26 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
National Tax Code is Federal Tax that is being withheld from your gross pay. It is determined by the W-4 you filled out when you were hired. Net pay is what you end up taking home after all the tax has been deducted.
2006-09-12 00:02:32 · answer #1 · answered by David 2 · 0⤊ 1⤋
The UK operates a taxation system known as "Pay as You Earn" or PAYE. It means that your employer deducts your income tax from your salary. Obviously this means that you pay your taxes earlier than you would under other systems where you pay your taxes annually, but it does mean that you don't need to worry about saving some of your income for a future tax bill.
The tax code tells the employer (indirectly) how much tax to deduct, and the Net Pay is how much money you actually receive, after deductions which include income tax, NI (another tax) and any other deductions such as union dues, pension contributions etc.
2006-09-12 00:05:21 · answer #2 · answered by Graham I 6 · 0⤊ 0⤋
tax code is How much tax allowance you have before tax is deducted. Net pay is what you get after all the deductions.
2006-09-15 22:55:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
National tax code is to calculate the amount of tax you must contribute.
Net pay is the amount of money you earn after deductions.
I work for national insurance so i know my sh*t.
2006-09-11 23:56:48 · answer #4 · answered by mick241602 3 · 0⤊ 0⤋
So that the Government can work out how much to rip you off for
2006-09-12 00:01:21 · answer #5 · answered by mushy peas 2 · 0⤊ 1⤋
It's to inform you that the government are screwing you without taking your cloths off!!
2006-09-11 23:57:03 · answer #6 · answered by Anonymous · 0⤊ 1⤋