What should he be paying?

Barkseh

I earn more than my friend but he is paying just under the same amount as tax as me.

He is paid via an agency 9.75 an hour. He works 40 hours per week. How much tax and national insurance should he be paying? We both thought you are allowed to earn 11,000 odd tax free before they start taxing you etc? Is there anyone that could tell me how much he should earn after tax and national insurance please?

Thanks.

BoGoF

Without knowing their tax code it's impossible to say. What code is on their payslip?

Barkseh

removed incorrect info

Barkseh

Sorry:

The correct tax code is 1096L

BoGoF

So on those figures he earns £390 gross per week and on that tax code should be paying around £36.

However the tax code is not the 'standard 1250L. For some reason the tax code has been restricted. That could be for various reasons - underpaid tax or benefit in kind.

Pennywise

If he's being paid through an agency there are likely to be other deductions besides tax and NIC such as agency fees, employers NIC, holiday pay accruals, etc. There may be other things applicable to him that aren't to you such as student loan repayments and workplace pension contributions. You really need to look at the payslips and see what deductions are being made.

Barkseh

Is that including national insurance? How much of that should he be paying?

Thanks for the help so far

Barkseh

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unholyangel

Barkseh wrote: »

bumppppppppp

No one can answer your question without exact details i'm afraid. If you can post details from his payslip then you should get responses.

Or he can call HMRC and they should be able to tell him why his tax code is reduced.

molerat

9.75 x 40 = £390 weekly. On a code of 1096 he should be paying £35.80 tax, £26.88 NI and possibly £2.00 student loan if on plan 1. If any different there are likely other factors in play

Sibbers123

The weekly threshold for NIC is £165 (off the top of my head) - anything over that amount will be subject to 12% NIC.

National insurance is calculated per pay period, not annually.