P.A.Y.E. Income Tax

[spainlads]

Can someone please explain how to work out your PAYE Income Tax. I've a single mans allowance. I know there are 2 levels of tax, but what are they, and what percentage is National Insurance???

[saffstar]

To get your taxable income you take your gross pay & then subtract the personal allowance from it. Benefits in kind (company cars etc) are a different kettle of fish, if you have them, they're normally dealt with through a change to your tax code (which would mean a change to your personal allowance). The thresholds that ansteyg quoted are split up into either months or weeks (depending on how often you get paid) so you get a bit of your personal allowance each payday, an bit of your starting rate allowance each payday and so on.

[GuavaHalf]

If all you want to do is estimate your net income from your gross go here: http://www.i-resign.com/uk/financialcentre/tax_calculator.as p