PaySlip Help needed

Uncertain

Hi

Having been self employed almost all my working life I'm finding my new PAYE payslips hard to check.

Can somebody tell me if I'm right in the following......

My pension contribution is deducted from my gross salary?

The first £503 I earn each month (6035 / 12 personal allowance) is tax free?

I pay 20% tax on the rest? (Don't earn enough for higher rate)

Do I pay NI (at what rate? - I'm contracted out) on

Whole salary?

or

Whole salary after personal allowance?

or

Only on what's left after tax?

Also, how do I check my tax code?

Many thanks

Uncertain

jem16

Uncertain wrote: »

Hi

Having been self employed almost all my working life I'm finding my new PAYE payslips hard to check.

Can somebody tell me if I'm right in the following......

My pension contribution is deducted from my gross salary?

The first £503 I earn each month (6035 / 12 personal allowance) is tax free?

Yes

I pay 20% tax on the rest? (Don't earn enough for higher rate)

Yes

Do I pay NI (at what rate? - I'm contracted out) on

Whole salary?

or

Whole salary after personal allowance?

or

Only on what's left after tax?

NI is paid on the whole gross amount. Rates and contracted out rebates are here;

http://www.hmrc.gov.uk/rates/nic.htm

Also, how do I check my tax code?

Normal tax code is 603L with no W1 or M1 after it.

CLAPTON

-the standard tax code is 603L (without anything like W1 or M1)
- your tax code may be different for several reasons.. benefits in kind (e.g. company car/ health insurance), errors, tax owing from previous years

-what is yours?

if your tax code is 603L the you are allowed to earn 6035 per annum before tax is payable

-assuming no expenses and your tax code is 603L then
- your total salary is called gross salary
- your pension is taken from your gross salary giving your taxable salary (so you dont pay tax on your pension contributions
-from your taxable salary, 503 is allowed tax free then you pay tax at 20% on the remainder
- your NI is based on your gross salary.. the first 453 is NI free then the rest is deducted at 9.4% (as your say you are contracted out otherwise it would be 11%)

Uncertain

CLAPTON wrote: »

-the standard tax code is 603L (without anything like W1 or M1)
- your tax code may be different for several reasons.. benefits in kind (e.g. company car/ health insurance), errors, tax owing from previous years

-what is yours?

if your tax code is 603L the you are allowed to earn 6035 per annum before tax is payable

-assuming no expenses and your tax code is 603L then
- your total salary is called gross salary
- your pension is taken from your gross salary giving your taxable salary (so you dont pay tax on your pension contributions
-from your taxable salary, 503 is allowed tax free then you pay tax at 20% on the remainder
- your NI is based on your gross salary.. the first 453 is NI free then the rest is deducted at 9.4% (as your say you are contracted out otherwise it would be 11%)

I don't have and benefits such as company car.

I will check code this evening.

Just one question, do I pay NI on my pension contribution (unlike tax)?

Many thanks

jem16

Uncertain wrote: »

Just one question, do I pay NI on my pension contribution (unlike tax)?

NI is paid on your gross salary before any deductions for either pension or tax so yes.