When workers earn more than a certain amount (called the tax threshold), they have to pay income tax.
For example, during the tax year from April to April , an individual would have to pay income tax on any income over .
The first is called a tax allowance, and a person is usually allowed to earn this amount without having to pay any income tax on it.
Of the income that is to be taxed, the first (approximately) is taxed at , and any income over this amount is taxed at a higher rate.
Helen has an annual salary of for the tax year .
She has a tax allowance of .
Calculate how much income tax she will have to pay during the year.
Helen has a tax allowance of , so she will only have to pay income tax on .
Her income is under therefore income tax is charged at the rate of .
Helen will have to pay as income tax.
This is an amount taken from wages and salaries to contribute towards benefits such as your state pension.
For the year , the rate of National Insurance contributions is on earnings between and a week, or between and per year. If you earn below a week, you do not have to make any National Insurance contributions. If you earn more than a week, then you also have to pay on any further earnings.
Dayna works as an actress. Her weekly wage is .
How much National Insurance does Dayna have to pay each week?
Total National Insurance paid of of