How do i deduct my tax and n.i. from my salary?
Answers:
You dont deduct it yourself it is done by your employer using tables from the Inland Revenue. If you are selfemployed its done at the end of the year on a Self Assesment. If you are not sure contact the Inland Rev or a book keeper like me.
There is a link on my web site for the Inland Rev
don't worry - the 'bean counters' will do it for you automatically.
You don't, your employer does that (unless you're self-employed or a contractor).
employ an accountant, thats what I did
Take away 1/3 of your yearly pay.
You need the correct tables from the Inland Revenue
Salary implies that you are an employee on PAYE (Pay As You Earn) - this means that the company accountants will automaticallyy deduct the NI and income tax from your salary - keep an eye on the tax code they give you though - especially if you have just started, they may put you onto an emergency tax code which will be really high.
NI is based at a constant 8.64% of your entire salary.
Tax is 24.5% generally however if your earn less than £4500 get a proper job or if you earn more than £39,999 you pay 40%.
You take the % off the entire wages as well. Which is why people who can see this, know that they are being taxed twice.
Nice Government hey!!!!
If you are employed, your employer is responsible for deducting about 20% for the NI
If you are self employed, the NI will tell you how to do it when you register.
The answers post by the user, for information only, UKQnA.com does not guarantee the right.