Paying tax

C_Ronaldo

Is there a point in your wages where if you go it you pay tax, say for example i earn £259 a month would i earn tax on that amount

C_Ronaldo

thanks toots, another question, this time about NI contribs, how is that calculated

exil

£84 a week or about £370 a month.11% on anything above that.

exil

By the way on an income of this level you might be able to get tax credits, HB or CTB see https://www.entitledto.co.uk

Savvy_Sue

exil wrote: »

£84 a week or about £370 a month.11% on anything above that.

In practice you can earn a smidgeon above those amounts: the NI contribution due up to about £90 per week is so small that HMRC don't make you pay it.

Also perhaps worth saying that tax and NI are calculated differently.

With tax, it's what you earn over the WHOLE year

With NI, it's what you earn in a particular pay period, normally a week or a month

So if you earn a lot more one week or month than another, you'll pay more NI that time and not be entitled to get it back.