Gaming6 mins ago
Tax help??
3 Answers
My daughter just started her first full time job about 6 months ago, so far she has earned about �3500 with the company at this stage is she eligiable to pay tax? As for the last 2 months tax and NI have been deducted.
Also if she has a gross pay this month of �740 how much should her net pay be?
Any help much appreciated.
Also if she has a gross pay this month of �740 how much should her net pay be?
Any help much appreciated.
Answers
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For more on marking an answer as the "Best Answer", please visit our FAQ.Based on a personal tax coding of 522L (i.e. �5225 may be earned per year before tax) and Class 1 NIC (i.e. �100 per week before NI is deducted)
�740 Gross - �44.71 Tax - �33.73 = �661.56 Net
http://www.listentotaxman.com/index.php?calc=1 &year=2007&period=12&ingr=740&Submit=Calculate
�740 Gross - �44.71 Tax - �33.73 = �661.56 Net
http://www.listentotaxman.com/index.php?calc=1 &year=2007&period=12&ingr=740&Submit=Calculate
That doesn't mean, however, that she can earn �5225 before she starts to pay tax though. It means that �5225 will be deducted from her total earnings for the year when calculating how much tax she will pay each month. I pay tax, national insurance and pension and my total deductions each month equate to approx. 27% of my monthly gross pay.
They will estimate how much she should earn this tax year based on her current earnings and then apply the tax code to the entire period and she will pay tax based on that even though she hasn't reached her limit yet. In order words, her tax free limit will be divided so that she gets a bit of it every month.
They try to space the tax out rather than having a few months with no tax and a few months with full tax.
They try to space the tax out rather than having a few months with no tax and a few months with full tax.