Question is in the title
I know it's probably a pathetic question to ask but what's the difference between tax paid and employee NIC? Because this comes up on my payslip deductions bit and I don't understand the difference.
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Can someone explain the difference between tax paid and NIC watch
- Thread Starter
- 29-07-2010 12:36
- 29-07-2010 18:00
Tax paid is income tax.
NICs have a different threshold, only have one rate and are allocated to specific parts of public spending. Also you can't claim them back unlike income tax.
- 29-07-2010 18:05
Have a look here; http://www.direct.gov.uk/en/YoungPeo...ou/DG_10027904 to work out how much you should be paying for Tax and NI.
- 29-07-2010 18:16
Are you asking what each of them is?
If so then Tax Paid is the amount of Income tax that you have paid for this wage period ie monty or week. So you will be paying tax on the amount that you earn but you also have a personal allowance which is probably around £6500 per year.
You will also have a cumulative tax which is the amount of tax that you have paid in this financial year which is basically from the beginning of April to the end of March next year.
Your National Insurance Contributions are the money that you pay in order to receive benefits if you are sick or unemployed and it also goes towards your State pension. Employee NIC is the amount that you have paid. There is also a contribution from your employer and that is called Employer NIC.