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Questions about Pay

Discussion in 'Supply teaching' started by s4mm13, Dec 17, 2011.

  1. Because not only do you pay your own NI contibution, you pay your employers too! [​IMG]
    Also, Tax will be deducted if you pay reaches the point where if you were to earn that amount for the year, you would reach threshold.
    Not forgetting either that you pay a fee to recieve your pay through the umbrella.[​IMG]
    I'm in exactly the same boat. I work a five day week, but rhoguh fees etc only manage to take home 4 days worth of pay and i'm only on £75 a day [​IMG]
     
  2. jubilee

    jubilee Star commenter

    There is no NI charged on the first tranche of your pay (about £92 per week is free of NI). After that you pay over 12 % employees' NI and slightly more employer's NI.
    The first £142 approx of pay per week is also free of income tax. Every pound over that amount is charged at 20%. Your tax free figure will be slightly higher as they will offset some expenses against it (the fee you pay the umbrella company etc).
    At the end of the tax year you will need to contact the Inland revenue to get an assessment of your income versus tax paid. You will have weeks without income and lower earning weeks so may overpay tax at times in the year.
     
  3. My reservations also.
    I don't claim expenses either...
     
  4. jubilee

    jubilee Star commenter

    Because in other weeks you have earned less and the first part of your pay has been free from any NI. i suspect that the fee to the umbrella company is also not treated as NI taxable pay. If you were paying a few pounds in NI before, every single pound earned after that (in the same pay period) would be subject to over 12% employee NI and slightly more employer NI.
    Just using simple figures as an example:
    Earn £100 gross and £92 in NI free, so only pay NI of 12% on £8 of earnings = 96p NI (employee).
    Earn £200 in another week and £92 is NI free so you pay 12% employee NI on £108= £12-96
    Pay has doubled but NI is more than 13 times more as the NI free element remains the same each week, no matter what you earn.
     

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