Topic 8

Topic 8

1. national insurance is payable by all those between 16 and state pension age who are working

2. people who should pay higher or additional rate income tax must usually complete a self-assessment tax return each year

3. Employees pay national insurance class 1

4. A self-employed person's self-assessment tax return must be completed by January 31 after the end of the tax year

5. Additional-rate taxpayers pay tax on savings income at 45%

6. A from P60 is given to each employee by their employer at then end of the tax year. it is an official document that shows the final tax code

7. if a employee receives benefits in kind, such as a company car, the values of the benefits is usually taken off their personal allowance. this means that they would have a lower tax code than normal

8. People with taxable income up to £31,785 are basic-rate taxpayers and pay tax at 20% (with £10,600 personal allowance, this is gives a threshold of £42, 385) those with taxable income over the limit pay tax at 40% on income above the threshold. Taxable income over £150,000 is taxed at 45%

9. P 45 is a form that employees receive when they change jobs. it states how much they earned and how much tax was deducted.