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In the 2016-17 financial year, the standard non-taxable allowance for an individual is £11,000.00. If the employee has a standard tax code of 1100L they will begin to pay tax when earning £917.00 per month. This is based on them working from 6th April 2016, and working continually throughout the year.

National insurance for 2016-17 begins to be deducted when an employee earns £672.00 per month.

If your employee is paid more than £672.00 per month, but less than £917.00 per month they will have NI deducted from their pay, but no tax.

If your employee is paid weekly the tax threshold is £211.53, whereas the NI threshold is £155.00.

There is more information about National Insurance found on the Gov.org website at the link below:

https://www.gov.uk/national-insurance/overview

If you have any questions on how tax and NI is calculated, take a look at the Knowledge Nugget blog. If you have questions and need help on tax and NI, PayrollAbility would be happy to hear from you. Call the office today for a chat.