need to work out how much tax and insurance i have to pay out of my wages
2007-08-07 09:21:21 · 6 answers · asked by pamelaoneill29 1 in Business & Finance ➔ Taxes ➔ United Kingdom
This site works it out for you
http://www.listentotaxman.com
2007-08-08 10:01:32 · answer #1 · answered by Philip W 7 · 0⤊ 0⤋
I work for HMRC and have spent the last 7 years making sure employers have complied with PAYE/NIC Regulations.
Most of the previous advice is pretty sound, but as ever there is no simple answer. A number of factors come into play depending upon your circumstances.
For example (1) a tax code ending in "X" or "M1" or "W1" means that we look at that week/month in isolation. (2) NI is different if you are a company director. (3) if you earn a lot then you pay 1% on the excess over £670 per week. The list is not exhausted!
Assuming you are a "standard employee", e.g. one who is on an emergency code (522L X) as a new employee, paying standard National Insurance, you'll get £100 per week tax/NI free. After that NI is 11%, and tax is 10% on the first £43, and 22% thereafter.
If you want it spot on, give your 'local' tax office a call and they should be able to tell you exactly.
2007-08-07 18:54:50 · answer #2 · answered by Mark 3 · 0⤊ 0⤋
Tax
Very approx first £100 per week tax free then 10% going up to 22% and progressing on to a max of 40%.
NIC
From about £98 to £650 gross wages per week you pay 11%
2007-08-07 16:29:48 · answer #3 · answered by polumbo 3 · 0⤊ 0⤋
tax is based on what you have earned so far this year & what you have earned in this wage period. it makes allowance for your personal allowances ie the 0%, 10%, 22% & 40% brackets but spreads them out over the full year. you cannnot work out your tax properly without knowing your earnings & tax so far this year.
N.I. is calculated weekly or monthly, whichever you are paid. approx 10% of everything you earn over £100 each week. it is not cumulative like tax though and it is only concerned with your earnings in that wage period.
2007-08-07 16:34:45 · answer #4 · answered by paul m 5 · 0⤊ 1⤋
Income tax rates and allowances are at
http://www.hmrc.gov.uk/rates/it.htm
National Insurance rates are at
http://www.hmrc.gov.uk/rates/nic.htm
If you can't use the tables, email me the numbers and I'll work it out for you.
2007-08-07 16:28:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you allow for about 20% you wont be far out on your calculations.
2007-08-07 16:25:06 · answer #6 · answered by Anonymous · 0⤊ 1⤋