How much income tax do I pay?

Sporran

I just got a new job mid-way through this tax year and I should make £8000 by 5 April 2012. Since the personal allowance is £7475, how much tax do I pay for this tax year 2011/2012?

Is it £105 (i.e [8000-7475]/5) or £1600 (i.e 8000/5)? (tax at 20%)

Thanks

mildred1978

What did you earn the rest of the year? Did you claim any benefits?

pleasedelete

Use listentothetaxman website

Sporran

My entire taxable income for this tax year will come to £8000 including past job, benefits and current job.

If the second calculation is correct, I'm considering cutting back my hours to bring my total below the personal allowance.

mildred1978

It's the first calculation then. You pay 20% of everything above the £7475 allowance. Plus NI of course.

Sporran

excellent, thank you

dawyldthing

National insurance is 11% too

molerat

12% 2011/12

If you keep below £139 per week / £602 per month yoiu will not pay NI.

agrinnall

From The Salary Calculator you will pay £105 tax and £93 NI, assuming your tax code is 747L, although the NI is very much dependent on what you get in each pay period.

ceeforcat

Sporran wrote: »

My entire taxable income for this tax year will come to £8000 including past job, benefits and current job.

If the second calculation is correct, I'm considering cutting back my hours to bring my total below the personal allowance.

Please- why on earth would you do that? If you earn over the amount of £8000 you will pay 11% NIC and 20% tax - you will take home 69% of every £100 earned.

Do you really want to lose £100 in order not to pay £31 tax? Would you not prefer to have the extra £69?

( I have a client to refused to claim his state pension because he did not want to pay 20% of it in tax - he lost nearly £5000 in pensionbut didn't pay tax of £1000 and could not see that he would have been £4000 better off)