How much tax

[Cheesefreek]

My friend, who is 18, earns �5.65 per hour for a 30 hour week. His circumstances are normal. How much tax should he be paying please.

[Ethel]

�676.80 per year

�56.40 per month

�13.02 per week

[Cheesefreek]

Thank you Ethel. As I thought, he's paying too much. Much appreciated.

[buildersmate]

Is his Tax Code 543L (or 603L from this week)?

[Cheesefreek]

That's right buildersmate. Does it make any difference?

[Ethel]

Yes, he should have �10 per month more in his paypacket from this month's pay.

Also a rebate of �10 for every month since April, if he has been working.

[New Judge]

Ethel's calculations are near enough correct (I think she may be �1 per year out, but let's not quibble) provided your friend is paid for 52 weeks per year.

If he takes any unpaid hols his annual tax bill will be less. And don't forget he also has to pay 11% on all his earning over �104 per week for National Insurance. (This amounts to about another �371 per year - about �7.15 per week) for your friend.

Unlike Income Tax, NI is not cumulative, it is payable and non-refundable weekly or monthly (depending how you get paid). So if you pay it when you earn a full week's wages, but earn nothing the next you do not get a rebate.

[Cheesefreek]

Thanks a lot for everyone's help. The information is much appreciated.