How do you work out how much tax you pay?

[fun house]

Hi i have been looking at my accounts today and have added up roughly what the yearly amount will be. I know what my personal allowance is but was unsure how they work out how much tax i would pay on the amount that i will have left? Does any one know is it a certain amount in a £1?

[Zoomie]

you pay 20% on amount over your PA of 6475.

so 10000-6475=3525x20%= 705

but also you pay 8% NI class 4 on amount over 5715

so 10000-5715=4285x8%=342.80

so 705+342.80 = 1047.80

HTHs

(this roughly equates to 10p for every £1, but the ratio will change as you go up or down)

[Mykidsrock]

Hi

I have a savings account and I put a 1/4 of each wage into this and then when the tax bill comes I pay what I owe and usually have a little left as spending money!

I also pay NI contributions on a monthly basis - these vary depending on your earnings.


HTH

Jess x

[Chatterbox Childcare]

I put away 10% each month amd that is enough to cover my tax and ni. As a rough guide I say 25% of profit for tax and ni