The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>United Kingdom Taxes

How do i calculate someones tax deductions and NI contributions using the figures for tax year 08/09 ??????


tax bands are changing from the current one to the new one which will take effect in tax year 08/09

basically in this tax year the tax bands are going to be 20% and 40%. So 10% has been removed and the 22% has been reduced by 2%. How would i calculate the tax deductions for someone with a gross salary of 拢28,000 bearing in mind that the tax code changes too i.e. instead of 522L to 544L so his personal allowance would be 拢5445

also how would i calculate the NIC's for the person earning 拢28,000


thanks

The personal allowance for 08/09 will be 5435 not 5445. The starting point for 20% tax has not yet been announced - it will be in the March 2008 Budget.
The way to work out tax liability is to take the taxable income, ie 拢28,000, deduct the tax free allowances, 5435, making 22,565 taxable. You then apply the different tax rates - it might be 2500 at 10% and the rest at 20% for instance. Add the results of these together and you get the annual tax bill.
For NIC's, you take the taxable pay and deduct the lower eranings limit - I imagine this will be 5435 for 08/09 and charge the balance at whatever the rate is - currently 11%.

Tags
  Atlanta   Other - Business & Finance   Other Taxes   United States Taxes   United Kingdom Taxes   Spain Taxes   Singapore Taxes   Mexico Taxes   Ireland Taxes   India Taxes   Germany Taxes
Related information
  • Council tax bailiffs?

    Yes of course they can enter your property. Yes of course they can take your car if it is worth anything. You will have to either pay up or let them take everything they can. You have clearly ex...

  • Should i phone them?

    Contact your local council again and explain the situation. You might even try the citizens advice bureau the can help as well. Nobody agrees with paying the council tax but unfortunately we have ...

  • Council tax in two homes?

    Hi,tell them you have moved back home.

    ...
  • If You go bankrupt does it clear your tax bill as well as all your other debts?

    Hi, if your in the UK then yes. I worked for HMRC chasing tax debts and we often served bankruptcy proceeding on them. However there is a monetary limit of around 拢2500.00 before they will do this....

  • Child Benefit Lost Cds- Letter?

    well if you are taking child benifit then your details are lost as they sent the whole database of the people recieving child benifit. millions of people's details are lost and i guess it wi...

  • If my companies income was <拢1 do i include it in the corporation tax return?

    A zero will suffice.

    ...
  • Query on correct pay?

    It never hurts to ask. Especially since it could be a considerable amount of money. They should be willing to look into the situation and give you an answer. And if the answer is no - you might ...

  • Will. where are you? I need help with my w4 form.?

    it sounds like, from your description of your situation, that you would be entitled to all of your federal income tax dollars refunded to you, in which case, I would advise you to claim single 9 on...

  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster