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Post Info TOPIC: Work out Tax and NIC on low imcome


Newbie

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Work out Tax and NIC on low imcome
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Hello Everyone,

 

Can someone en-light me on this a new employee  working just one day a week earning £120 how would you work out Tax and NIC?

 

many thanks

 

 

 



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Senior Member

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Have you asked this new employee for a Form P45?

If he does not have a Form P45 then you will require the following information:-

full name
gender
date of birth
full address (including postcode)
National Insurance number (if the employee knows it)

Then he will need to confirm one of the following:-


A. This is their first job since last 6 April and they have not been receiving taxable Jobseeker's Allowance, Employment and Support Allowance, taxable Incapacity Benefit, state pension or occupational pension.

B. This is their only job, but since last 6 April they have had another job, or have received taxable Jobseeker's Allowance, Employment and Support Allowance or taxable Incapacity Benefit. They do not receive state or occupational pension.

C. They have another job or receive a state or occupational pension.

If A apply a 944L tax code. If B apply a 944L W1/M1 tax code. If C, apply a BR Tax Code.

Then just calculate wages using the PAYE system as normal.


__________________

Your local accountant

 

 

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