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bigdec
Posts: 271 Forumite
Is there any way of finding out how much tax and national insurance that has to be paid on wages
0
Comments
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Details can be found on the Revenue and Customs website.
Income tax rates and Allowances: http://www.hmrc.gov.uk/rates/it.htm
National Insurace rates and Allowances: http://www.hmrc.gov.uk/rates/nic.htm
The NI page is fairly complicated, but I'm sure someone else will be along soon to point you towards a decent calcuator site.
Edit: Having had a quick look myself this site seems fairly decent: http://www.ir35calc.co.uk/PAYE_NI_Net_Salary_Tax_Calculator.aspx0 -
NI rates ---> http://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/BeginnersGuideToTaxArticles/fs/en?CONTENT_ID=4015904&chk=izW7Qe
Tax Rates ---> http://www.bbc.co.uk/radio1/onelife/work/rights/law_redund.shtml
According to the sites, assuming you aren't self employed:
tax:
The first £4,385 you earn is tax free
The next £1,520 is taxed at 10%
£1,521-£28,400 is taxed at 22%
Earnings over £28,400 are taxed at 40% (I have to admi I thought the threshold was higher than this....)
NI for 06/07:
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
you also pay one per cent of earnings above £645 a week as Class 1 NICs
you will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme0 -
http://www.listentotaxman.com/index.php?calc=1&year=2006&age=0&add=0&taxcode=503L&period=1&ingr=15000&Submit=Calculate
Sorry aboutthe long link but someone pointed me in the direction of the above site when I asked a similar question....
hth:o0
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