Action For Children Quiz Winter 2024 C/D...
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tax & national insurance
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What percentage of your wages is taken by tax and national insurance
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Tax:
on the first �2,020 - 10% (the starting rate)
on the next �29,380 - 22% (the basic rate)
on any income over �31,400 - 40% (the higher rate)
National insurance is a bit more complicated, assuming you are an ordinary employee and not self-employed, look here for the rates: http://www.hmrc.gov.uk/rates/nic.htm
on the first �2,020 - 10% (the starting rate)
on the next �29,380 - 22% (the basic rate)
on any income over �31,400 - 40% (the higher rate)
National insurance is a bit more complicated, assuming you are an ordinary employee and not self-employed, look here for the rates: http://www.hmrc.gov.uk/rates/nic.htm
A good rough way of doing this is to assume 30% is taken in PAYE & NI.
If you are paid weekly or multiples of weeks - take your gross pay and deduct �90 (or multiples of �90) and divide what's left by 30% eg �210 less �90 = �120 / 30% = �36 tax and NI
If you are paid monthly take gross pay and deduct �390 and devide what's left by 30% eg �1200 less �390 = �810 / 30% = �243 tax & NI
This doesn't take into account the lower or higher tax band but works with the vast majority as basic rate tax payers.
If you are paid weekly or multiples of weeks - take your gross pay and deduct �90 (or multiples of �90) and divide what's left by 30% eg �210 less �90 = �120 / 30% = �36 tax and NI
If you are paid monthly take gross pay and deduct �390 and devide what's left by 30% eg �1200 less �390 = �810 / 30% = �243 tax & NI
This doesn't take into account the lower or higher tax band but works with the vast majority as basic rate tax payers.
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