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    Hi,

    I have a really confusing question, i hope someone can help me.

    Basically i've been working full time for three years this september doing 37.5 hours a week. I am returning to college in September to start a HND - so i will be cutting my hours down to 15 hours a week.

    What i'm worried about is how much tax will i pay when i'm working 15 hours a week. I've worked out that if i work 15 hours a week and i get roughly £8.44 p/h that is about 506 a month, so i have no idea how much will be deducted.

    Thanks so much for any help!!
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    Depends on how much you have earned already this tax year. IIRC, your first £6,675 is tax free. Then you are taxed 20% onwards till you reach £37,400 where you are taxed 40%. Your pay slip will tell you your earnings to date for this tax year.
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    (Original post by nessa87)
    Hi,

    I have a really confusing question, i hope someone can help me.

    Basically i've been working full time for three years this september doing 37.5 hours a week. I am returning to college in September to start a HND - so i will be cutting my hours down to 15 hours a week.

    What i'm worried about is how much tax will i pay when i'm working 15 hours a week. I've worked out that if i work 15 hours a week and i get roughly £8.44 p/h that is about 506 a month, so i have no idea how much will be deducted.

    Thanks so much for any help!!
    The amount of Income Tax you pay is based on your total income in each tax year, so I can't give you an exact answer without details of your income so far this year (from 6 April onwards). However, as a rough estimate, assuming I understand your post correctly:

    37.5 hours/week, 6 April - 31 August (approx 5 months) = 37.5*52*(5/12) = 812.5 hours
    15 hours/week, 1 September - 5 April (approx 7 months) = 15*52*(7/12) = 455 hours

    Total = 812.5 + 455 = 1,267.5 hours
    At £8.44 per hour, that gives total annual income of about £10,700.

    You then deduct your annual tax-free personal allowance from this (£6,475 for most people), to give taxable income of £4,225. Basic rate income tax on this at 20% would then be £845 for the year. Given that your earnings won't be constant over the year, neither will the amount of the Income Tax deductions.

    You'll also have National Insurance Contributions deducted at 11% on the excess above £110 per week. This is determined per pay period, so is not affected by previous earnings. Assuming 15 hours per week, this results in NICs of ((8.44*15)-110)*11%=£1.83 per week.


    www.listentotaxman.com is a great resource for any queries like this.
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    hi

    thank you both for your post, they've been really helpful. I will look at what i've earnt, and what i'll do is speak to someone that i work with also.

    Thanks again, so much! x
 
 
 
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