If you earn above £97 a week (the 'earnings threshold') and up to £645 per week you pay 11 per cent of this amount as 'Class 1' NICs
If you also pay one per cent of earnings above £645 a week as Class 1 NICs.
My question is: are these amounts (£97 and £645) earnings AFTER income tax has been deducted, or BEFORE income tax has been deducted?
2006-11-13 22:17:26 · 5 answers · asked by Tom d 1 in Business & Finance ➔ Taxes ➔ United Kingdom
before. you should be so lucky
2006-11-13 22:21:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
all of the tax and Ni are taken out at the same time if you check your wage slip it should say Gross pay this is the pay you earn before any deductions. the final amount that gets paid to you is Net pay - pay that the deductions have been taken from. to keep is simple for example if you earn £100 per week and 11% is deducted for Ni & 19% for tax a toatal of 30% is taken from you £100 gross pay after the deductions of 30% (£30) you are left with £70 net pay which is what you actually recieve. hope this helps.
2006-11-13 22:26:39 · answer #2 · answered by Cruz 4 · 0⤊ 0⤋
your pay is taxed as gross pay you then pay nation insurance,remember that no matter how much you pay into your entitlement is the same when you retire so although you might pay into the system over the years at the upper earnings you will only get out a pension at the same rate of paying at the lower rate of earnings,there is less likely hood of getting any other payments as well,the state system is very unfair to those that have paid into the system at the higher rates
2006-11-13 22:42:08 · answer #3 · answered by angie n 4 · 0⤊ 0⤋
before
2006-11-13 22:19:00 · answer #4 · answered by sonny 2 · 0⤊ 0⤋
before it has been deducted.
2006-11-13 23:04:41 · answer #5 · answered by Catwhiskers 5 · 0⤊ 0⤋