Monday, Jun 27, 2022

Calculate your income tax: How much should I pay?

Understanding how much income tax you need to pay is essential for keeping your finances under control and your budget in check. Use our income tax..

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Understanding how much income tax you need to pay is essential for keeping your finances under control and your budget in check. Use our income tax calculator below to see how much tax you will need to pay and how much of your income you get to take home.

Our income tax calculator is free and easy to use. Simply input your annual income and our calculator will not only show you how much tax and National Insurance you’ll pay, but also what your net income will be (by week, month and year) to allow you to plan your finances effectively.

This calculator is also a useful tool if you are moving to a new job or negotiating a pay rise. It’ll give you an accurate picture of your new net income following a pay increase.


What is income tax?

Income tax is a tax you pay on your earnings and for most people, it is paid via your employer’s PAYE system. Every employee will have a tax code which tells your employer how much to deduct from your gross salary.

If you are self-employed, you may pay income tax through a Self Assessment tax return each year.

What is National Insurance?

You will pay mandatory National Insurance if you are over 16 and either:

  • employed and earning more than £184 a week
  • self-employed and making a profit of £6,515 or more a year.

Paying National Insurance contributions allows you to qualify for particular benefits and the State Pension.

About our income tax calculator:

The calculations are for a single taxpayer and based on the current tax year.

If you think you may have paid the incorrect amount of tax, contact HMRC.

The post Income tax calculator: how much will I need to pay? appeared first on Marie Claire.

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By: Marie Claire
Title: Income tax calculator: how much will I need to pay?
Sourced From: www.marieclaire.co.uk/life/income-tax-calculator-how-much-will-i-need-to-pay-759797
Published Date: Fri, 17 Dec 2021 11:54:34 +0000

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