When calculating income tax & NI for PAYE, does the fact that the employment is on a fixed length contract comes into the calculation, or do the HMRC work on the basis you'll be earning at the same rate until the end of the tax year and refund you tax and or NI paid afterwards if that turns out not to be the case?
Say I start working at the start of a tax year on a £30,000 per annum, pro rata for 6 months fixed term contract. How much income tax and NI would be taken each month?
The fact that you're on a FTC doesn't make any difference to the PAYE/NI deducted. There is every chance that after the FTC finishes, it may be extended or you may find another job.
..so (making assumptions that your tax code is 810L, and your NIC table letter is A, and that you're not a director of the company) then your tax will be approx £365 and your Employees NIC approx £224 per month from April 2012.
is the money being paid to a person or to a limited company as the treatment is quite different?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Phew... Well there's a whole other can of worms that we don't have to open then!
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Phew... Well there's a whole other can of worms that we don't have to open then!
I can hear the dissapointment in your voice
You two know me too well!
Yeah it was less an enthusiatic "Phew... Well there's a whole other can of worms that we don't have to open then!", spoken with sincerity, and more of a quiet and moody "Phew... Well there's a whole other can of worms that we don't have to open then!", whilst idly kicking the floor and spoken petulantly.
-- Edited by Rhianrach on Saturday 25th of February 2012 12:49:02 PM
-- Edited by Rhianrach on Saturday 25th of February 2012 12:49:16 PM
Phew... Well there's a whole other can of worms that we don't have to open then!
I can hear the dissapointment in your voice
You two know me too well!
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
