Post
by drewchad » Wed Dec 01, 2004 11:42 am
Tax Basics:
Most individuals work in the UK as employees and have Income Tax and National Insurance deducted at source on a progressive scale as follows:
Income tax:
£0 - £4,745 = 0%
£4,746 - £6,766 = 10%
£6,767 - £36,415 = 22%
above £36,415 is taxed at 40%
On top of Income Tax, National Insurance (Class 1) is deducted as follows:
£0 - £4,745 = 0%
£4,746 - £36,415 = 11%
above £36,415 an additional 1%
So some one earning less than £4,745 would pay no tax and someone earning £45,000 would pay tax of £10,207.60 & NI of £3,542.55, leaving take home pay of £31,250.
(BTW I'm a New Zealand CA)
Last edited by
drewchad on Wed Dec 01, 2004 1:43 pm, edited 2 times in total.