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The Book-keepers Forum -> VAT, Payroll & Tax -> Income tax & NI on fixed length contract
Post Info TOPIC: Income tax & NI on fixed length contract
KTC


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Posts: 38
Date: Wed Feb 22 00:41 2012
Income tax & NI on fixed length contract
 

Hi,

When calculating income tax & NI for PAYE, does the fact that the employment is on a fixed length contract comes into the calculation, or do the HMRC work on the basis you'll be earning at the same rate until the end of the tax year and refund you tax and or NI paid afterwards if that turns out not to be the case?

Say I start working at the start of a tax year on a £30,000 per annum, pro rata for 6 months fixed term contract. How much income tax and NI would be taken each month?

Thanks.



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gbm


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Date: Wed Feb 22 12:52 2012
 

The fact that you're on a FTC doesn't make any difference to the PAYE/NI deducted. There is every chance that after the FTC finishes, it may be extended or you may find another job.

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Richard_Carey


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Date: Wed Feb 22 16:11 2012
 

..so (making assumptions that your tax code is 810L, and your NIC table letter is A, and that you're not a director of the company) then your tax will be approx £365 and your Employees NIC approx £224 per month from April 2012.



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Truemanbrown


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Date: Fri Feb 24 00:06 2012
 

Make sure that your employer uses the correct tax code. The number of times I have seen employers use a BR code and deduct too much tax is incredible!

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gbm


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Date: Fri Feb 24 16:53 2012
 

Truemanbrown wrote:

Make sure that your employer uses the correct tax code. The number of times I have seen employers use a BR code and deduct too much tax is incredible!

It's the easiest (and lazy) option. 



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Shamus


Forum Moderator & Expert

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Date: Fri Feb 24 17:11 2012
 

Just to confirm / clarify.

is the money being paid to a person or to a limited company as the treatment is quite different?

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KTC


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Date: Fri Feb 24 22:31 2012
 

Simple employer employee relationship.

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Shamus


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Date: Sat Feb 25 00:56 2012
 

Phew... Well there's a whole other can of worms that we don't have to open then! wink



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Wella


Expert

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Date: Sat Feb 25 12:08 2012
 

Shamus wrote:

Phew... Well there's a whole other can of worms that we don't have to open then! wink

 I can hear the dissapointment in your voice biggrin



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Rhianrach


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Date: Sat Feb 25 12:12 2012
 

Wella wrote:
Shamus wrote:

Phew... Well there's a whole other can of worms that we don't have to open then! wink

 I can hear the dissapointment in your voice biggrin

 biggrin



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Steve
Shamus


Forum Moderator & Expert

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Date: Sat Feb 25 12:39 2012
 

Rhianrach wrote:
Wella wrote:
Shamus wrote:

Phew... Well there's a whole other can of worms that we don't have to open then! wink

 I can hear the dissapointment in your voice biggrin

 biggrin

 You two know me too well! cry



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Rhianrach


Guru

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Posts: 919
Date: Sat Feb 25 12:48 2012
 

Shamus wrote:
Rhianrach wrote:
Wella wrote:
Shamus wrote:

Phew... Well there's a whole other can of worms that we don't have to open then! wink

 I can hear the dissapointment in your voice biggrin

 biggrin

 You two know me too well! cry

 Yeah it was less an enthusiatic "Phew... Well there's a whole other can of worms that we don't have to open then!", spoken with sincerity, and more of a quiet and moody "Phew... Well there's a whole other can of worms that we don't have to open then!", whilst idly kicking the floor and spoken petulantly. smile



-- Edited by Rhianrach on Saturday 25th of February 2012 12:49:02 PM



-- Edited by Rhianrach on Saturday 25th of February 2012 12:49:16 PM

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