This ignores national insurance, which is an additional tax-by-another-name with it's own system of thresholds and rates.
OK, I'll bite :-)
Below the Earnings Threshold (£100 per week on 2007-08) you pay nothing. Between the ET and the Upper Earnings Limit (£670), you pay 11%. Above the UEL you pay 1%.
Employer's contributions are 12.8% on everything above the secondary Earnings Threshold (also £100).
If you contract out of SERPS the State Second Pension the rates change, all bets are off, and the poor sod that does your payroll will HATE YOU FOR EVER. Similarly, if you are self-employed, ignore all this - it's a flat £2.20 per week, plus 8% of your profits within certain bands.
If you're paid monthly or in some other interval, the same thresholds apply but in a scaled form. Masochists should peruse CA38 (http://www.hmrc.gov.uk/nitables/ca38.pdf), and marvel at the byzantine process described therein, which has to be applied for each and every employee.
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Re: You missed 'I don't get it'
Date: 2007-03-22 11:26 am (UTC)OK, I'll bite :-)
Below the Earnings Threshold (£100 per week on 2007-08) you pay nothing. Between the ET and the Upper Earnings Limit (£670), you pay 11%. Above the UEL you pay 1%.
Employer's contributions are 12.8% on everything above the secondary Earnings Threshold (also £100).
If you contract out of
SERPSthe State Second Pension the rates change, all bets are off, and the poor sod that does your payroll will HATE YOU FOR EVER. Similarly, if you are self-employed, ignore all this - it's a flat £2.20 per week, plus 8% of your profits within certain bands.If you're paid monthly or in some other interval, the same thresholds apply but in a scaled form. Masochists should peruse CA38 (http://www.hmrc.gov.uk/nitables/ca38.pdf), and marvel at the byzantine process described therein, which has to be applied for each and every employee.
Baroque? Rococo? What's the next superlative?