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12 Cards in this Set
- Front
- Back
- 3rd side (hint)
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How much is non taxable earnings |
12,500 |
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Basic rate tax payer is what % and how much do they have to earn |
20% 12,500-50,000 |
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Higher rate tax payers are what % of tax and how much do they have to earn |
40% 50,001-150,000 |
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Additional rate tax payers How much do they earn and what % do they pay |
45% tax Anything over 150,000 |
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What age do you pay National Insurance? What criteria do you have to have to pay? |
Employed 16 to state pension age. Earning over £183 a week or are self employed making profit over £6,475. |
Age and earnings |
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What is class one National Insurance? |
Employees pay class 1 on 12% on their earnings between £183 and £962 per week and 2% on any earnings over £962 per week. |
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Class 2 national insurance |
Flat rate for self employed 3.05 per week |
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Class 4 National insurance |
9% on annual taxable profits between 9,500 and 50,000 |
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If Wendy earns 22,000 per annum What tax bracket is she in? How much tax does she owe? |
£1900 20% tax rate over 12,500 Tax bracket is 12,500 and 37,500 |
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P60 What is it |
At the end of every tax year shows all income tax and National insurance paid during the preceding 12 months. |
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P45 document What is it |
P45 is prepared when an employee leaves an employer summarises Tax and NI for next employer |
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Pay slip What is it |
Monthly document which states how much someone is paid. |
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