new personal allowance rates

sunrise27_2

not sure if this is in the right place ??
I know in April the personal allowance rates are going up
I am hoping to give up a few hours at work in the next few months and am trying to work out my wages
I use the listen to the tax man calculator
I hope I can get this to make sense
I've worked out what my new wages will be each month but its showing that I will have to pay tax ( obviously because the calculator hasn't been updated yet ) by my calculations my yearly wage will be £7512 the new personal allowance will be £7475
when it shows that at the moment using the current personal allowance rates I would have to pay £17.28 each month in tax am I right in thinking that give or take a few pounds I would be that much better off after April ??? not sure this making sense at all ?????
also does anyone know if the national insurance rates are going up in April will I be better or worse off ???

zygurat789

So long as your income (excluding taxed interest etc) is only £7,512 you will be taxed on £37 @ 20% ie £7.40 pa.
On £144.50 per week the NI will be 12% above £139pw. 66p pw

sunrise27_2

thank you
I realise I have to pay NI to count towards my state pension
is 66p a week enough to count towards it ???

sunrise27_2

zygurat789 wrote: »

So long as your income (excluding taxed interest etc) is only £7,512 you will be taxed on £37 @ 20% ie £7.40 pa.
On £144.50 per week the NI will be 12% above £139pw. 66p pw

is that national insurance rate you've quoted new in April as when I go on listen to the taxman its saying I would pay £16.43 a month ???? but obviously thats on todays rates

noh

sunrise27 wrote: »

is that national insurance rate you've quoted new in April as when I go on listen to the taxman its saying I would pay £16.43 a month ???? but obviously thats on todays rates

This tax year you pay 11% NI on earnings above £110 per week
Next tax year the rate is increased to 12% but the threshold is also increased to £139 per week.
The overall effect of this is that those earning less than about £20000 per annum will pay less NI next tax year than they did this.

NIC rates here:-
http://www.hmrc.gov.uk/RATES/nic.htm

sunrise27_2

excellent !! so is 66p a week enough to count towards a qualifying year ???

noh

sunrise27 wrote: »

thank you
I realise I have to pay NI to count towards my state pension
is 66p a week enough to count towards it ???

You will have contributions added to your record as long as you earn more than the lower earnings limit (£97 this year £102 next)

You don't start paying NI until your weekly earnings exceed the primary threshold which, as stated in my post above, is £110 this year £139 next.

So as you can see you do not have to be paying NI to qualify for the state pension.

sunrise27_2

noh wrote: »

You will have contributions added to your record as long as you earn more than the lower earnings limit (£97 this year £102 next)

You don't start paying NI until your weekly earnings exceed the primary threshold which, as stated in my post above, is £110 this year £139 next.

So as you can see you do not have to be paying NI to qualify for the state pension.

sorry to sound stupid
but I thought I had to have so many qualifying years ( I think it is going to be 30 ??? ) of actually paying national insurance to qualify for a state pension
if I have less than 30 years then I get a percentage but are you saying if I earn over £102 a week and don't pay NI it will still be a qualifying year ??

sunrise27_2

and also how does it work if I also have a tiny tiny little business which I paid £80 tax on last year as well as my job where I'm employed would it be worth me paying class 2 NI contributions ???

jem16

sunrise27 wrote: »

but are you saying if I earn over £102 a week and don't pay NI it will still be a qualifying year ??

That's correct.

and also how does it work if I also have a tiny tiny little business which I paid £80 tax on last year as well as my job where I'm employed would it be worth me paying class 2 NI contributions ???

Can't see the point in this if you are already receiving a qualifying year through work.

sunrise27_2

this is all very interesting
what I would like to do is cut down hours at my paid job and concentrate on my 'tiny tiny' business - I don't want this to end up as a huge business but would like to make a little more money on it and it is something I can do at home and be in control of rather that spending all day working for someone else