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How Much Tax do I Have to Pay?

By: J.A.J Aaronson - Updated: 25 Jul 2017 | comments*Discuss
 
Tax Bands Paye Income National Insurance

In a life full of financial uncertainties, there is one thing that you can cling to as an absolute fact: the taxman will always be trying to take money off you. How much tax you have to pay, however, is dependant on a number of different factors.

National Insurance

In the first instance, it is important to recognise that there are two distinct payments which you will normally be required to make to the government. The first is National Insurance.

These are contributions that individuals make to the public purse, in order to guarantee their right to state-run welfare facilities. National Insurance is different from general taxation in several key ways: primarily, although levels of contribution are staggered, the access to benefits is not means tested. Furthermore, employers also make a contribution for each of their employees, based on the size of contribution being paid by the latter.

National Insurance contributions are divided into Classes, ranging from Class 1 to Class 4. If you are an employed person, you are likely to be required to make Class 1 contributions. This means that, if your gross wage is over the Earnings Threshold, currently set at £157 - £866 per week, you will pay 12% of your income in National Insurance Contributions, or NICs. Furthermore, if you earn over £866 per week, you will pay another 2% of everything you earn over that figure. As an employed person, it is the responsibility of your employer to pay your contributions out of your wage.

For the Self-Employed

If you are self-employed, the National Insurance system is slightly different. In this case, regardless of your income, you will pay Class 2 NICs at a flat rate of £2.85 per week. On top of this, you will be required to make Class 4 contributions of 9% of your income between £8,164 and £45,000. On earnings over this higher figure, you should be making contributions of 2%. You should also bear in mind that, if your income is less than £6,025, you can apply for a Small Earnings Exception, which exempts you from Class 2 contributions.

Income Tax

Aside from National Insurance, you will also pay income tax. Everyone has an annual non-taxable allowance of £11,500 (6 April 2017 to 5 April 2018). If you are employed, then you will pay tax on earnings over this allowance as follows: 20% up to £45,000, 40% between £45,000 to £150,001, and 45% on everything over £150,000. Your income tax will be automatically deducted from your wage if you are signed up to a PAYE scheme.

If you are self-employed, the income tax system operates slightly differently. In these cases, you will be required to fill in a Self Assessment, which involves giving details of all of your taxable earnings from the previous year. From this, HM Revenues and Customs will calculate how much tax you must pay. You will pay tax at the same rate as employed people; the difference is that your payments are not deducted as you earn.

Please note that these figures apply to the 2017-18 tax year.

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[Add a Comment]
My husband has started a new job if he gets £560 a week how much will his take home be after tax?
Roxy - 25-Jul-17 @ 6:53 PM
@Robhattan1 - he will get a tax return if he earns below £11,500, or even if he earns above he still might have paid too much tax.
Ade - 21-Jul-17 @ 2:40 PM
My brother is working as a self employed carpenter, sunbcontracting. He is signed up to the CIS scheme He pays 20% tax on £300 a week They pay the tax for him Should he get a tax return if he earns below the £11,000? After filling out a tax return?
Robhattan1 - 21-Jul-17 @ 10:43 AM
R - Your Question:
If I earn 450 weekly how much I have to pay tax and NI , is it better to weekly or monthly ?

Our Response:
Based on a salary of £23,400 across 52 weeks per year, you would pay approximately £46 per week. You would have your tax deducted automatically whenever you are paid.
MoneyExpertise - 20-Jul-17 @ 2:53 PM
If I earn 450 weekly how much I have to pay tax and NI , is itbetter to weekly or monthly ?
R - 20-Jul-17 @ 8:26 AM
Hey I just recently got my first full time job and I never got taxed for first 2-3 months now I'm being taxed is that ment to happen I've never had a job before
Thomas - 18-Jul-17 @ 9:39 PM
Bob - Your Question:
I work two part time jobs adding up to 33.5 hours a week. I earn 13701.61 pa. How much tax should be paying?

Our Response:
You should be paying 'approximately' £37 per month/ £439 per year.
MoneyExpertise - 17-Jul-17 @ 10:50 AM
I work two part time jobs adding up to 33.5 hours a week. I earn 13701.61 pa. How much tax should be paying?
Bob - 14-Jul-17 @ 8:15 PM
Chan - Your Question:
I'm only working for around 10 weeks earning roughly £360 a week. As I'm still a university student I'll stop after this. Will I get taxed?? If so how much??

Our Response:
Until you earn over £11,500 in the year (which is your annual personal tax allowance) you will not be taxed.
MoneyExpertise - 14-Jul-17 @ 3:00 PM
I'm only working for around 10 weeks earning roughly £360 a week. As I'm still a university student I'll stop after this. Will I get taxed?? If so how much??
Chan - 14-Jul-17 @ 1:28 PM
Pandafiend - Your Question:
I have two jobs. In one, I earn £960 every 4 weeks (but I get paid fortnightly) and in the other I earn £350 every four weeks. So pre-tax income is £17030. How much should I be taxed between the two? The last time I got paid for a fortnight (£502, as I'd done a couple of hours extra) I was taxed £68.40.Last year, despite HMRC changing my tax codes several times because I shouldn't have paid tax (on a lower amount) and I ended up with nearly £900 in a tax rebate. Also, do you only get taxed on any income over 11.500 (as in I'd only have to pay 20% of £5530, which would be £1106 a year which is far less than I'm getting taxed at the moment) Or, do you get taxed on ALL of your income if you earn over 11,500?

Our Response:
You get taxed on 'all' your income over £11,500 - £45,000 at 20%. Over £45,000 you would transfer to higher rate income tax.
MoneyExpertise - 13-Jul-17 @ 4:18 PM
Jess - Your Question:
Question: iv never paid tax before as I only earn under 700 a month. This month however iv had Lots of overtime and will be paid 850. I'm on 5.90 an hour and I don't claim any benefits and still live with my mum. Will I be taxed and roughly how much?

Our Response:
It is unlikely you would still have to pay tax. Until you earn over £11,500 per annum (which is your annual tax free personal allowance)you would not have to pay.
MoneyExpertise - 13-Jul-17 @ 1:58 PM
Im on income EES and have been offered 15 hrs work that earns me £200 a week. Can l do this or not?
Abseyk12 - 13-Jul-17 @ 12:13 AM
I have two jobs.In one, I earn £960 every 4 weeks (but I get paid fortnightly) and in the other I earn £350 every four weeks.So pre-tax income is £17030. How much should I be taxed between the two?The last time I got paid for a fortnight (£502, as I'd done a couple of hours extra) I was taxed £68.40. Last year, despite HMRC changing my tax codes several times because I shouldn't have paid tax (on a lower amount) and I ended up with nearly £900 in a tax rebate. Also, do you only get taxed on any income over 11.500 (as in I'd only have to pay 20% of £5530, which would be £1106 a year which is far less than I'm getting taxed at the moment) Or, do you get taxed on ALL of your income if you earn over 11,500?
Pandafiend - 12-Jul-17 @ 9:45 PM
Question: iv never paid tax before as i only earn under 700 a month. This month however iv had Lots of overtime and will be paid 850. I'm on 5.90 an hour and I don't claim any benefits and still live with my mum. Will i be taxed and roughly how much?
Jess - 12-Jul-17 @ 1:51 PM
Gee - Your Question:
Hi I was wondering if anyone would be able to help me out I get paid £300 per week so I wanted to know if anyone would know the tax off of the £300? Thank you I've tried everything and I just don't understand it

Our Response:
If you are earning £300 per week across 52 weeks of the year and you are employed and not self-employed, then you should be paying approximately £16 per week in tax.
MoneyExpertise - 10-Jul-17 @ 12:54 PM
Hi I was wondering if anyone would be able to help me out I get paid £300 per week so I wanted to know if anyone would know the tax off of the £300? Thank you I've tried everything and I just don't understand it
Gee - 10-Jul-17 @ 12:27 AM
If I earn 560 a week how much emergency tax would I have to pay
Paul Steven sherlock - 8-Jul-17 @ 1:00 PM
Jo - Your Question:
I have been claiming income support got the last 10 months whilst off sick, I ended up getting dismissed with notice and was paid approx £3200 in holiday and years of service pay, I stopped my income support and started a new job last month, I have just received my first payslip which covered the first 18 hours of work and my tax code is 1150L but I have been taxed £66.00 on £135 wages do you know why this is?

Our Response:
1150L is an emergency tax code if followed by ‘W1’, ‘M1’ or ‘X’. Emergency codes are used if a new employee doesn’t have a P45.
MoneyExpertise - 7-Jul-17 @ 11:09 AM
R.Khan - Your Question:
If I earn £367.5 a week. How much will I take home after taxes?

Our Response:
You would pay approximately £31 per week tax, based upon payment across 52 weeks per year.
MoneyExpertise - 7-Jul-17 @ 10:45 AM
I have been claiming income support got the last 10 months whilst off sick, I ended up getting dismissed with notice and was paid approx £3200 in holiday and years of service pay, I stopped my income support and started a new job last month, I have just received my first payslip which covered the first 18 hours of work and my tax code is 1150L but I have been taxed £66.00 on £135 wages do you know why this is?
Jo - 6-Jul-17 @ 5:59 PM
Caz - Your Question:
I have one job and my tax code is 359T? Is this correct ? I earn roughly 12 thousand a year

Our Response:
You can see more via the gov.uk link here.
MoneyExpertise - 6-Jul-17 @ 2:50 PM
If I earn £367.5 a week. How much will I take home after taxes?
R.Khan - 6-Jul-17 @ 2:11 PM
Hannah - Your Question:
I work at a sports camp during school holidays. There are 13 weeks of holidays so I usually work between 1 and 5 days per week. If I work all 5 days I'll earn £250 but it's not often I can work all 5 days. If I were to work at every camp throughout the year and earn the maximum of £250 each week, how much tax would I have to pay?Thanks

Our Response:
If you earned £250 per week across 52 weeks of the year, then you would pay £6 per week tax. If this is your one and only job, this means you would be earning £13,000. You would not pay tax on the first £11,500 (as this is your annual personal tax allowance). Therefore, you would pay tax on only £1500.
MoneyExpertise - 6-Jul-17 @ 10:55 AM
Lauvi - Your Question:
I work full time for a retail company. I earn £15.5k/year. I have found a teaching job, part time, but they have asked me to be self-employed. I would only earn £50/week. Would I have to pay tax and National Insurance on my part-time self-employed job??? would this affect the taxes that I pay on my full time job? Thankd

Our Response:
Your taxes on your full-time position would not be affected. If you are self-employed you would register with HMRC and be eligible to pay tax on your second income. However, you will be able to offset earnings against expenses which can help reduce the tax you have to pay on your second job. You can see more via the link here.
MoneyExpertise - 6-Jul-17 @ 10:23 AM
I have one job and my tax code is 359T? Is this correct ? I earn roughly 12 thousand a year
Caz - 5-Jul-17 @ 11:42 AM
I work at a sports camp during school holidays. There are 13 weeks of holidays so I usually work between 1 and 5 days per week. If I work all 5 days I'll earn £250 but it's not often I can work all 5 days. If I were to work at every camp throughout the year and earn the maximum of £250 each week, how much tax would I have to pay? Thanks
Hannah - 4-Jul-17 @ 3:04 PM
I work full time for a retail company. Iearn £15.5k/year. I have found a teaching job, part time, but they have asked me to be self-employed. I would only earn £50/week. Would I have to pay tax and National Insurance on my part-time self-employed job???would this affect the taxes that I pay on my full time job? Thankd
Lauvi - 4-Jul-17 @ 1:38 PM
Mike - Your Question:
I earn £800 a week. How much will I take home after taxes?

Our Response:
If your wage is based across 52 weeks of the year, then it is likely you will pay £116 per week in tax and £77 National Insurance. This means your take home pay would be £607 per week.
MoneyExpertise - 30-Jun-17 @ 12:37 PM
I earn £800 a week. How much will I take home after taxes?
Mike - 28-Jun-17 @ 11:00 PM
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