Tax allowance

sparky666

Hi

Not sure how to word the question.

Hope some one can help please, is the national insurance stamp, part of the tax allowance money, ie.........if I earnt £100.00 per week...........and NI stamp was £20.00.......is the £20.00 part of the £6475.00 tax free allowance or not.

Ie gross wages........or net wages

Hope that makes sense.

anamenottaken

NI and Income Tax are separate. NI has nothing to do with your personal allowance.

And Income Tax works on a cumulative basis for the year whereas National Insurance is calculated on each week or month's payment.

You pay tax on your salary without any deduction for NI. (Not all of us who are employed pay NI but we all have a personal allowance.)

NI is no longer a "stamp".

PasturesNew

On £100 you'd pay no tax as across a whole tax year you'd only earn £5200 and the usual tax code for somebody's about £6500.

On £100 you'd also pay no NI.

Not sure what you're after really, but "no, the NI isn't part of the tax free allowance".

You pay NI in any week/month (depending how often you're paid), when you earn more than the NI threshold for that period of time.

sparky666

Thank you. Understood.