Tax and National Insurance

[Skithepowder]

I just got a job working in a store, I will be earning 5.10 an hour on an avergae of between 30 and 37 hrs a week. I was just wondering what will I pay out of this towards tax and national insurance.... I know that you are allowed to earn something like 4000 pounds before you have to pay tax right? Then there is like a % system that increases as the amount you earn increases. Will I pay tax from the beginning and then get it refunded? Or only after I pass the 4000 mark or what? What is national insurance contributions and how much is that likely to be? I'm pretty sure it all gets paid automatically from my wages before I get paid them but I was just wondering how much it will be roughly.

[BJC]

Can't answer your questions but can recommend this webs site which works out your tax and NI

http://www.digita.com/taxcentral/home/employment/payslipcalculator/default.asp

Good luck

[kags]

You can earn �94 a week before you pay tax (free-pay). If you have not been working or claiming Job Seekers Allowance since the start of the tax year in April, all your unused �94s will be added up, and you will not pay tax until your cumulative income from the new job exceeds the total (approx �2450). If you have been earning, or claiming Job Seekers Allowance, the amount of freepay available will be reduced accordingly. The next �40 a week of your earnings will be taxed at 10%, the balance at 22%. For a full 37 hour week then, once your backlog of free-pay has been used up, you will pay tax of around �16.

You may initially be taxed without the benefit of the accumulated free-pay (emergency code), whilst your employer awaits a proper code from the Inland Revenue. Once the code is in operation, you will receive a refund.  

National Insurance works differently, there is no accumulaton of "credit" in the same way, you will pay 11% of everything over �94 a week straight away. For a full 37 hour week that works out at �10.41.

In summary, assuming earnings per week of �188 and no earnings or JSA in the tax year to date, you will be deducted �10.41 for the first 13 weeks, thereafter around �26.41 a week.