PAYE Tax & NI - UK-Muscle Body Building Community

Magic Torch · 19-12-2007, 05:35 PM

Dudes,

With PAYE you have brackets of taxable rates - 10%, 20% and 40%.

When you pay, PAYE do you pay the tax up to the level you are at in terms of Gross pay, then when you hit another quartile you start paying that?

So you start on the first month paying 10%. Then when you hit the limit you start paying the 20% tax until your gross hits the 40% bracket then you pay that?

Im confused :confused:

BSF James · 19-12-2007, 05:54 PM

Basically if you were to pay tax at the end of the year you'd get your first £5,225 tax free. Your next £2,150 is at 10%. Your next amount that takes you up to £33,300 total wage is taxed at 22% and whatever you earn over £33,300 is taxed at 40%.

E.g. if your wage is 35k:

£5,225 @0 tax
£2,150 @ 10% = £215
£25925 @ 22% = £5703.50
£1700 @ 40% = £1700
Total tax = £7618.50

Its kind of similar for NI as well I think. When being paid weekly, the payroll software being used calculates the amount on a weekly basis so will use 1/52 of the allowances to work out how much PAYE you owe a week. With this method though, if your earnings change throughout the year, you can end up sometimes paying too much or too little tax and NI. So I always advise my staff to do the calculations at the end of the year to make sure they havent overpaid and put in a self assessment return if they have. One of our guys had quite a hefty refund last year.

Magic Torch · 19-12-2007, 06:00 PM

Cheers J,

Its so confusing, I have had 3 pay rises this tax year, I'm just trying to get my head around my tax.....if I work it out right it looks like they are deducting it on last years salary- so I can expect a tax bill in april....Money grabbing gits!

BSF James · 19-12-2007, 06:08 PM

If they are using Sage payroll like us and most companies use, then it should adjust the tax you pay each week as they change your wage.

If they are charging you at your old rate then the Revenue may contact you at the end of the tax year once the company submit their PAYE return, so its probably worth putting some cash aside just in case. Still - you cant complain at 3 pay rises in a year!

Magic Torch · 19-12-2007, 06:18 PM

Yeah I sound a bit ungreatful lol, my company is american which doesn't help - they pay my bonus in fookin USD$!

Thanks

squat_this · 19-12-2007, 08:02 PM

Quote:

Originally Posted by Magic Torch

Its so confusing, I have had 3 pay rises this tax year

You must be really good at your job...or you're sleeping with your boss?

**Pscarb** · 19-12-2007, 08:10 PM

yea frank his boss is really happy

LEWIS · 19-12-2007, 08:21 PM

Quote:

Originally Posted by Magic Torch

Dudes,

With PAYE you have brackets of taxable rates - 10%, 20% and 40%.

When you pay, PAYE do you pay the tax up to the level you are at in terms of Gross pay, then when you hit another quartile you start paying that?

So you start on the first month paying 10%. Then when you hit the limit you start paying the 20% tax until your gross hits the 40% bracket then you pay that?

Im confused :confused:

yes mate but i think its 22%

Slamdog · 19-12-2007, 08:32 PM

i used to get sent tables from the tax office which used to tell me how much tax/wages/ni i had to pay... i think you can download them these days from revenue and customs...

DB · 19-12-2007, 10:34 PM

the fuker works all the hours under the sun he deserves a payrise! U just gotta get ash a decent job now!so he can pay me back! lol

Tasty · 19-12-2007, 10:53 PM

Hang on sorry can anyone help me with this, because I'm crap with number and am extremely confuzzled. I've paid no tax this year, but am about to cross that tax threshold where I start paying, will I only be taxed 10%? And then how long before it goes up?

Slamdog · 20-12-2007, 06:19 AM

they normally average it out over the year and then if they over pay you give it back when you get your self assessment form completed...

saying that though, the revenue told me last year i wouldn't be doing self assessment any more as i was paye for so long.

**Pscarb** · 20-12-2007, 08:16 AM

we pay far to much fukcing tax in my oppinion £900 this fukcing month greedy baarstewards...

Ollie B · 20-12-2007, 08:24 AM

Fooking hate tax. Im gonna sod off to Dubai soon, no tax there

GTT · 20-12-2007, 08:44 AM

Quote:

Originally Posted by Ollie B

Fooking hate tax. Im gonna sod off to Dubai soon, no tax there

yep and you can enjoy your mid days at the local square watching people get beheaded.....

19-12-2007, 05:35 PM	#1 (permalink)
Magic Torch UK-M Swimsuit model Join Date: May 2005 Location: Essex Posts: 5,062 Blog Entries: 5	PAYE Tax & NI Dudes, With PAYE you have brackets of taxable rates - 10%, 20% and 40%. When you pay, PAYE do you pay the tax up to the level you are at in terms of Gross pay, then when you hit another quartile you start paying that? So you start on the first month paying 10%. Then when you hit the limit you start paying the 20% tax until your gross hits the 40% bracket then you pay that? Im confused :confused: __________________ intentionally blank

19-12-2007, 05:54 PM	#2 (permalink)
BSF James BodyShapers Fitness MD Join Date: Sep 2003 Location: Telford Posts: 1,258	Re: PAYE Tax & NI Basically if you were to pay tax at the end of the year you'd get your first £5,225 tax free. Your next £2,150 is at 10%. Your next amount that takes you up to £33,300 total wage is taxed at 22% and whatever you earn over £33,300 is taxed at 40%. E.g. if your wage is 35k: £5,225 @0 tax £2,150 @ 10% = £215 £25925 @ 22% = £5703.50 £1700 @ 40% = £1700 Total tax = £7618.50 Its kind of similar for NI as well I think. When being paid weekly, the payroll software being used calculates the amount on a weekly basis so will use 1/52 of the allowances to work out how much PAYE you owe a week. With this method though, if your earnings change throughout the year, you can end up sometimes paying too much or too little tax and NI. So I always advise my staff to do the calculations at the end of the year to make sure they havent overpaid and put in a self assessment return if they have. One of our guys had quite a hefty refund last year. __________________ To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. -Now with FREE shipping available on all UK mainland orders! 5% off your first order - use discount code ukm6. The #1 choice for To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. with rapid, reliable service. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. - research backed sports nutrition.

19-12-2007, 06:00 PM	#3 (permalink)
Magic Torch UK-M Swimsuit model Join Date: May 2005 Location: Essex Posts: 5,062 Blog Entries: 5	Re: PAYE Tax & NI Cheers J, Its so confusing, I have had 3 pay rises this tax year, I'm just trying to get my head around my tax.....if I work it out right it looks like they are deducting it on last years salary- so I can expect a tax bill in april....Money grabbing gits! __________________ intentionally blank

19-12-2007, 06:08 PM	#4 (permalink)
BSF James BodyShapers Fitness MD Join Date: Sep 2003 Location: Telford Posts: 1,258	Re: PAYE Tax & NI If they are using Sage payroll like us and most companies use, then it should adjust the tax you pay each week as they change your wage. If they are charging you at your old rate then the Revenue may contact you at the end of the tax year once the company submit their PAYE return, so its probably worth putting some cash aside just in case. Still - you cant complain at 3 pay rises in a year! __________________ To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. -Now with FREE shipping available on all UK mainland orders! 5% off your first order - use discount code ukm6. The #1 choice for To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. with rapid, reliable service. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. - research backed sports nutrition.

19-12-2007, 06:18 PM	#5 (permalink)
Magic Torch UK-M Swimsuit model Join Date: May 2005 Location: Essex Posts: 5,062 Blog Entries: 5	Re: PAYE Tax & NI Yeah I sound a bit ungreatful lol, my company is american which doesn't help - they pay my bonus in fookin USD$! Thanks __________________ intentionally blank

19-12-2007, 08:10 PM	#7 (permalink)
Pscarb UK-Muscle Moderator and NABBA Champion Join Date: Jan 2005 Posts: 10,190	Re: PAYE Tax & NI yea frank his boss is really happy __________________ To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. Admin at To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. Nutrition is your greatest anabolic agent everything else is just the icing on the cake

19-12-2007, 08:32 PM	#9 (permalink)
Slamdog Who nicked my hair? Join Date: Jun 2007 Location: Northampton Posts: 1,802	Re: PAYE Tax & NI i used to get sent tables from the tax office which used to tell me how much tax/wages/ni i had to pay... i think you can download them these days from revenue and customs... __________________ I'd like to see it your way but I can't get my head that far up my own ar$e

19-12-2007, 10:34 PM	#10 (permalink)
DB UK-Muscle Moderator Join Date: Oct 2003 Location: SW London Posts: 11,227	Re: PAYE Tax & NI the fuker works all the hours under the sun he deserves a payrise! U just gotta get ash a decent job now!so he can pay me back! lol __________________ DB To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. often imitated never duplicated To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. DB sleeps with a night light. Not because DB is afraid of the dark, but the dark is afraid of DB. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.

19-12-2007, 10:53 PM	#11 (permalink)
Tasty Gym Addict Join Date: Aug 2007 Location: Londoner in Oxford Posts: 387 Blog Entries: 2	Re: PAYE Tax & NI Hang on sorry can anyone help me with this, because I'm crap with number and am extremely confuzzled. I've paid no tax this year, but am about to cross that tax threshold where I start paying, will I only be taxed 10%? And then how long before it goes up? __________________ The one they call the Fonz

20-12-2007, 06:19 AM	#12 (permalink)
Slamdog Who nicked my hair? Join Date: Jun 2007 Location: Northampton Posts: 1,802	Re: PAYE Tax & NI they normally average it out over the year and then if they over pay you give it back when you get your self assessment form completed... saying that though, the revenue told me last year i wouldn't be doing self assessment any more as i was paye for so long. __________________ I'd like to see it your way but I can't get my head that far up my own ar$e

20-12-2007, 08:16 AM	#13 (permalink)
Pscarb UK-Muscle Moderator and NABBA Champion Join Date: Jan 2005 Posts: 10,190	Re: PAYE Tax & NI we pay far to much fukcing tax in my oppinion £900 this fukcing month greedy baarstewards... __________________ To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. Admin at To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts. Nutrition is your greatest anabolic agent everything else is just the icing on the cake

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