Taxation

Jonners

Jonners

Jonners

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22 Nov 2002
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I've had my last couple of wage slips and they reveal I'm not paying tax but am paying National Insurance, I've used various online tax calculators and they say I should have a small deduction of £35 on my wage, yet payroll say I'm not eligible for tax.

Is there any set monthly amount I have to earn before paying tax? :confused:

Thanks
 
What's your tax code?

Add a zero to the end (of the three digit number, if there is one) and that's the amount you can ear per year without paying tax. Divide that my 12 to get the amount you can earn monthly and not pay tax.
 
Tupac said:
543L is my tax code.
Click to expand...

That means you can earn 5439 per year without any tax. (technically 5435, but it's upto the nearest 9)

/52 = 104.59

If you're earning over £104.59 per week, you should be paying tax.

Also, if you're paying NI contributions Assuming you're on a NIC letter A), you should be paying tax.
NI contributions are made up of:

Lower Earnings Limit (LEL) - £4680 = No NICs Due
Earnings Threshold (ET) - £755 (bringing it up to £5435) = No NICs Due

Again, if you're earning less than the Earnings Threshold of £105, you shouldn't be paying NI

email in trust if you want more info, i'm a super payroll manager.

well, not super.
 
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PAYE is cumulative over the tax year so it depends how much you've earnt since 6th April and whether that's over the personal allowance for the period from then until you were paid.

NI is calculated on a weekly basis, so not cumlative over the tax year, therefore as trescodrucey says anything over £105 a week you pay 11% NI or 1% if you're in the higher rate band.
 
Guv said:
PAYE is cumulative over the tax year so it depends how much you've earnt since 6th April and whether that's over the personal allowance for the period from then until you were paid.

NI is calculated on a weekly basis, so not cumlative over the tax year, therefore as trescodrucey says anything over £105 a week you pay 11% NI or 1% if you're in the higher rate band.
Click to expand...

and that was the answer, earning YTD
 
Certain circumstances dictate you shouldn't be paying tax, being a student is one, I think disability as well.
But NI is purely based on income not circumstance, it's about £100 a week before you pay NI.
 
pitchfork said:
Certain circumstances dictate you shouldn't be paying tax, being a student is one, I think disability as well.
But NI is purely based on income not circumstance, it's about £100 a week before you pay NI.
Click to expand...

You're wrong about students not paying tax - they follow the same rules as everyone else. If they're only working for the summer holiday or whatever there are options available if they won't exceed the PA in the whole tax year by filling in a P38(s).

See posts above for NI, it's £105 a week.
 
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