your payslip worshipful company of tax advisers. your payslip
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Your payslip
Worshipful Company of Tax Advisers
Your Payslip
Money for living• You have to work to earn money to live.• Most workers are employees and are paid a
salary.• The pay you are offered will not be the
actual amount you receive.• Tax and other deductions will reduce your
pay to your ‘take home’ amount.
Deductions
What is taken out?
• Income tax
• National Insurance contributions
• Student loan repayments
• Pension contributions
What should I look for on my payslip?
4
Mr A Smith NI Number: AB123456C Tax Code: 1000L
Pay by: BACS
Date: 30 April 2014
DESCRIPTION RATE (£) HOURS Salary 10 100
TOTAL
AMOUNT (£)
1,000.00
1,000.00
TaxNational InsurancePension ContributionsStudent loan
Total taxable pay to date: £1,000
33.3040.0013.33
0.00
86.63
THIS YEAR (£)
1,000.00
1,000.00
33.3040.0013.33
0.00
86.63
913.37
NET PAY
Employers NIC this period: 46.00 Tax District: Centre 1Employers NIC Year to Date: 46.00 Tax Reference: 961/111111
DESCRIPTION RATE (£) HOURS Salary 10 100
TOTAL
AMOUNT (£) 1,000.00
1,000.00
TaxNational InsurancePension ContributionsStudent loan
Total taxable pay to date: £1,000
33.3040.0013.33
0.00
86.63
DESCRIPTION RATE (£) HOURS Salary 10 100
TOTAL
AMOUNT (£) 1,000.00
1,000.00
DESCRIPTION RATE (£) HOURS Salary 10 100
TOTAL
AMOUNT (£) 1,000.00
1,000.00
TaxNational InsurancePension ContributionsStudent loan
Total taxable pay to date: £1,000
33.3040.0013.33
0.00
86.63
913.37
NET PAY
4
Mr A Smith NI Number: AB123456C Tax Code: 1000L
Pay by: BACS
Date: 30 April 2014
DESCRIPTION RATE (£) HOURS Salary 10 100
TOTAL
AMOUNT (£)
1,000.00
1,000.00
TaxNational InsurancePension ContributionsStudent loan
Total taxable pay to date: £1,000
33.3040.0013.33
0.00
86.63
THIS YEAR (£)
1,000.00
1,000.00
33.3040.0013.33
0.00
86.63
913.37
NET PAY
Employers NIC this period: 46.00 Tax District: Centre 1Employers NIC Year to Date: 46.00 Tax Reference: 961/111111
Work out your monthly take home pay
You earn £15,000 each year
Use your hand-out to calculate how much you receive each month
Annual deduction ratesIncome tax National Insurance£0 - £10,000 0% £0 - £8,000 0%
£10,001 - £40,000 20% £8,001 - £42,000 12%
£40,001 - £150,000 40% £42,001 + 2%
£150,001+ 45%
Student loans repayment Pension contributions £0 - £21,000 0% £0 - £8,000 0%£21,001+ 9% £8,001 - £42,000 4%
£42,001+ 0%
Payslip example - £15,000
DESCRIPTION RATE (£) HOURS Salary 12.50 100
TOTAL
AMOUNT (£) 1,250.00
1,250.00
TaxNational InsurancePension ContributionsStudent loan
Total taxable pay to date: £1,250.00
83.3370.0023.33
0.00
176.66
1,073.34
NET PAY
Payslip example – £15,000
4
Mr A Smith NI Number: AB123456C Tax Code: 1000L
Pay by: BACS
Date: 30 April 2014
DESCRIPTION RATE (£) HOURS Salary 12.50 100
TOTAL
AMOUNT (£)
1,250.00
1,250.00
TaxNational InsurancePension ContributionsStudent loan
Total taxable pay to date: £1,250
83.3370.0023.33
0.00
176.66
THIS YEAR (£)
1,250.00
1,250.00
83.3370.0023.33
0.00
176.66
1,073.34
NET PAY
Employers NIC this period: 80.50 Tax District: Centre 1Employers NIC Year to Date: 80.50 Tax Reference: 961/111111
Are you on the ball?
Wayne has signed a new contract with his club, earning £300,000 per week.
What would Wayne pay in income tax and National Insurance contributions each week?
Wayne’s weekly payslip
NI Number: AB123456C Tax Code: 0T
Pay by: BACS
Date: 5 April 2015
Wayne’s weekly payslip
DESCRIPTION Weekly
Salary
AMOUNT (£) 300,000.00
THIS YEAR (£) 15,600,000.00
Wayne’s weekly payslip
TaxNational InsurancePension ContributionsStudent loan Total taxable pay to date: £15,600,000
134,663.50 6,062.30 0.00 0.00
140,725.80
7,002,500.00 315,240.00 0.00 0.00
7,317,740.00
159,274.20
NET PAY
Wayne’s weekly payslip
Employers NIC this period: £41,378.77Employers NIC Year to Date: £2,151,696.00
Tax District: Centre 1Tax Reference: 961/111111
Wayne’s weekly payslip
Wayne NI Number: AB123456C Tax Code: 0T
Pay by: BACS
Date: 5 April 2015
DESCRIPTION Weekly Salary
AMOUNT (£)
300,000.00
TaxNational InsurancePension ContributionsStudent loan Total taxable pay to date: £15,600,000
134,663.506,062.30
0.00 0.00
140,725.80
THIS YEAR (£) 15,600,000.00
7,002,500.00315,240.00
0.00 0.00
7,317,740.00
159,274.20
NET PAY
Employers NIC this period: £41,378.77 Tax District: Centre 1Employers NIC Year to Date: £2,151,696.00 Tax Reference: 961/111111
Key points
Your ‘pay’ and what you actually get paid will differ because of
• Income tax• National Insurance contributions• Student loan repayments• Pension contributions
Key points
• Understand your payslip.• Check that the deductions are correct.• Know what you will actually receive as
your pay increases.
Worshipful Company of Tax Advisers
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