How to calculate Tax and National Insurance?

Need help!

Lets say the rates are this

Band Taxable - income - Tax rate
Personal Allowance - Up to £11,000 - 0%
Basic rate - £11,001 to £43,000 - 20%
Higher rate - £43,001 to £150,000 - 40%
Additional rate - over £150,000 - 45%

and I had an annual salary of 45k. How would I calculate it?
Thanks.

(edited 7 years ago)

Reply 1

Kevin De Bruyne

Original post by ak143244

I'm not familiar with the rates but according to this you'd pay £7200 in income tax and £4233 on national insurance.

From what I understand in your situation you'd pay 40% of 2000 and 20% of 32000((the different brackets only apply to values in that bracket, eg the 2000 comes from 40% being taxed on 45-43, the 32000 from 20% of 43000-11000) which also adds up to 7200 :smile:

Reply 2

Yaboi

Type "£45000 after tax" into google

says you're left with £33,567

Reply 3

2684719

Original post by Bluebutterfly310

Hi

1. Minus the 11 000 from the 45k
2. The amount you are left with, is less than 43k so do the basic rate and find 20%

hope that helps :smile:

Thanks! What if your salary is like £100k, that's what i struggle to do because you have to work out the badi rate or something like that. Thank your so much.

(edited 7 years ago)

Reply 4

2684719

Original post by Bluebutterfly310

You would work it out using the same princeiple.
100 000
1. Minus your tax free allowance (in this case is 11 000)
2. The amount you have left (89 000),you minus the 43k from (46 000) and you find 20% of that 43 000
3 then with the 46 000 left you find 40% of that.
4 add both your 20% and 40% together.

Hope that helps

Sp in total I would have to pay 17.8k in tax?

thank you so much! ^_^

Reply 5

2684719

Original post by Bluebutterfly310

No I got 27k tax you pay, how did you work it out ??

Welcome :smile:

Reply 6

2684719

Original post by Bluebutterfly310

You were right up to the 40%part where went wrong went you wrote "46000*0.4 = 9200"
Check that calculation it should= 18400 instead

So what should I write instead of 46k

I am so sorry, I'm pretty dumb at these stuff

Reply 7

2684719

Original post by Bluebutterfly310

Don't worry, I just understand numbers better than letters.
Hope this helps you to understand it.

Oh okayy
Thank you so so so so so so so much :smile:

Its probably my calculator then.
its kinda confusing at the start but hopefully with a few practises i should be okay.

Reply 8

2684719

Original post by Bluebutterfly310

Your very welcome :smile:

Probably which one are you using?? If it's a scientific one make sure it's in the right mode

And yea practise makes perfect. If you ever want any one to help ya, feel free to talk to me and I will help the best I can.

bless.

I used my phone for a calculations. Seems my phone calculator isn't that great or maybe I've inputted the wrong number.

will do, thank you so much! :smile:

How are you though?
sorry for late reply, I went to lesson and then prayed and now replying back.

Reply 9

2684719

Original post by Bluebutterfly310

My advice is to buy a scientific calculator, it will help.

Welcome :smile:

Im okay thanks, how are you??

And no worries, and sorry been studying and only just got home.

Yeah I've got that - i just used my phone quickly. Thanks for the suggestion!

I'm okay, tired more than anything else. Soo dark outside.

Yeah same here lol! :h:

Reply 10

2684719

Original post by Bluebutterfly310

Thats good and yea phone calculators are never reliable tbh.

Aw, you need to rest more by the sounds of it. And i know right, love the dark nights.

Cool lol