QUICK GUIDE TO NI AND TAX

[m3sye]

Potentially looking to employ 3 or 4 staff
Can someone give me quick diagram below roughly how much they would cost me in total with TAX and NI if they were on
£210 per week
£840 per month

Tx

[JustinP1]

Which one?

£210 per week or £840 per month?

The tax and NI you make deductions out of their money. Roughly, you have to pay 12% Employers NI on everything above roughly £5000 per year each employee.

[m3sye]

per week pls ..

[Eric Mc]

Are you quoting Gross or Net amounts - i.e. are these the amounts before or after the calculation of tax and NI?

[m3sye]

Eric Mc said:

Are you quoting Gross or Net amounts - i.e. are these the amounts before or after the calculation of tax and NI?

HI Eric

The above wage is before any deductions.

[apguy]

m3sye said:

Eric Mc said:

Are you quoting Gross or Net amounts - i.e. are these the amounts before or after the calculation of tax and NI?

HI Eric

The above wage is before any deductions.

I hope these are part time workers as £210 a week is only just above minimum wage for a 37.5hr week (assuming worker is over 21) !

[Ade355]

Simon,

Purely from an employer's perspective for NI, you need to use this:
http://nicecalculator.inlandrevenue.gov.uk/Class1N...

£13.44 per week (employer NI) if they contracted in on £210 per week.


NI and Income Tax that the employee pay are obviously in addition:
use this:
http://payecalculator.inlandrevenue.gov.uk/PAYE0.a...

[m3sye]

apguy said:

m3sye said:

Eric Mc said:

Are you quoting Gross or Net amounts - i.e. are these the amounts before or after the calculation of tax and NI?

HI Eric

The above wage is before any deductions.

I hope these are part time workers as £210 a week is only just above minimum wage for a 37.5hr week (assuming worker is over 21) !

Thanks for the concern but that figure was used as only a rough estimate..

[m3sye]

Ade355 said:

Simon,

Purely from an employer's perspective for NI, you need to use this:
http://nicecalculator.inlandrevenue.gov.uk/Class1N...

£13.44 per week (employer NI) if they contracted in on £210 per week.


NI and Income Tax that the employee pay are obviously in addition:
use this:
http://payecalculator.inlandrevenue.gov.uk/PAYE0.a...

Thanks Ade

[donz29]

As a rule of thumb employers NI (ie what you as an employee pays to HMRC for the pleasure of employing them) is 12.8% of gross salary, tax you needn't worry about as the employee pays this out of their gross salary. Worth mentioning that when you compare weekly pay to monthly pay multiply it by 4.333 rather than 4 as there are 52 weeks in a year and not 48 (assuming you pay monthly and not every 4 weeks). Also if you are considering paying them on an hourly basis remember to add additional 10.17% of gross salary to cover their holiday pay.

[smartie]

12.8% of wage over £100pw.

[Wheelrepairit]

£37.75 per £100 as far as i understand.