Pay and Deductions

Pay and Deductions

1. Payment methods

   • There is a thing called salery which is what you get yearly like someone could have a sallary of £22,000 a year or maybe even £90,000 a year.
   • Sometimes people get paid at an hourly rate, this is usually for part time jobs. Someone might have a hourly rate of £10 an hour or if you had a good job maybe even £20 an hour. (which when you add this up it is quite a bit)

2. Taxes

   • Income tax is where you have to pay a percentage of what you get to the goverment, the amount of tax you have to pay detmains on how much you earn. Up to £11,000 = 0%.. £11,000 to £43,000 = 20%... £43,001 to £150,000 = 40%.. over £150,000 = 45%
   • National Insurance is the tax that you have to pay, this is to fund the NHS. To keep it up and running. This is about 15% of your income.
   • There is optional payments as well, you can invest in like Extra pension and child care tax, also charity would count as well.