Income, National Insurance & PAYE  | Finance

It's important to know that the tax year runs from 6th April to 5th April every year. You may want to check you have paid the right tax, and stay up to date with your income tax for the year, so you know if you can apply for any tax rebates.. 

All UK tax is charged on income above £12,500 with a basic rate 20%. As you earn more, part of your earnings is taxable at a higher rate, with this rising to 40% once you earn more than £50,000 and 45% if you earn more than £150,000 a year. These limits are subject to change each year.

It is possible that you may pay tax in a tax year and not exceed the income threshold, if this occurs you should automatically receive a rebate. Your employer will provide you with a P60 each year detailing your income and tax for the previous tax year.

Additionally, you will pay Employee National Insurance at 12% on all income between £166 and £962 per week, for any income above £962 per week a further deduction of 2% is made, for example

You earn £1,000 per week

  • Nothing to be paid on first £166
  • 12% (£95.52) on the next £796
  • 2% (£0.76) on the next £38

Take a look at the GOV.UK site for all the latest information on PAYE, National Insurance and more

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