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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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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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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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..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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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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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


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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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BKN Book-keeper of the year 2012
KTC


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Simple employer employee relationship.

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Shamus


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



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Wella


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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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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


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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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Answers given are for outline only and formal advice should be sought from a suitably qualified Accountant.

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Rhianrach


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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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