HMRC – Tax & National Insurance
What’s National Insurance?
National insurance (NI) is your contribution to your government pension fund.
What’s taxable?
– Earnings from work, including tips and bonuses
– Jobseeker’s allowance
– Interest on your savings
– Dividends from shares in a company
How is this taken?
– Our accountants calculate your tax during payroll and send straight to the tax office
– Banks and building societies take tax from the interest they pay to savers and hand it over to the government
– If you change jobs, you’ll get a P45 from your employer to give to your new employer
How much do I pay?
– The first £12,570 you earn is tax free
– The next £12,571- £50,270 is taxed at 20%
What should I do if they take too much or too little tax?
– At the end of the tax year, you’ll receive a P60 form with what you’ve earned and how much tax you’ve paid
– If you’ve paid too much, you’ll get a refund from HMRC
– And if you’ve paid too little, they usually increase your deductions in the next tax year
Do I have to keep records?
Yes, it’s important. Keep:
– Anything from the tax office
– All your payslips
– Details from the Benefits Agency about any taxable social security benefits you claim
– Info from your bank or building society about any benefits you claim
