Originally Posted by 30psi
I know this jazz for my job...
First of all there is a personal allowance of £5,035.
After you earn after this amount you pay tax. If you are paid weekly/montly its divided by 12 or 52 etc.
After the personal allowance there is 2 types of tax; PAYE (income tax) and National Insurance (NI).
PAYE:
Up to £2,150 - 10%
£2,151 - £33,300 - 22%
£33,301+ - 40%
So if you earn £7,185, only £2,150 of it is taxed at 10%. If you earn £20,000, there is £2,150 taxed at 10% and then £12,815 at 22%. Therefore £20,000 would be deducted £3,034.30 PAYE.
NI:
Up to £33,540 - 10%
£33,451+ - 1%
Therefore for £20,000 NI of £1,496.50 is deductable.
On say a salary of £20,000, after deductions above, the net pay is £15,469.20 which is £1,289.10 per month.
|
14-03-2007, 00:19
The power of Christ compels you!!
Hybrid Mode
