How much does my company contribute to NI?
22 June 2004, 10:16 PM
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How much does my company contribute to NI?
I'm negotiating a new contract at the mo and was wondering if my company pay me for example £10 per hour in wages, how much do they actually pay for me inclusive of NI etc.?
22 June 2004, 10:33 PM
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Up to £4,745 you pay no NI
From £4,745 to £31,720 you pay 11% Employee's NI on this part of your salary. Your employer will also be paying 12.8% Employer's NI on top (you never see this in your payslip -- if you get a job paying £10,000 a year, for example, you will actually be costing your employer £11,280 a year including the Employer's NI)
From £31,720 onwards you pay 1% Employee's NI, and your employer continues to pay an additional 12.8% Employer's NI.
However, PAYE is a different story and dependent upon your tax code. Easiest thing is to do a search for "income tax calculator" and see what you can find. Make sure it's for the UK and the 2004/5 tax year. Or find someone who has a copy of Sage Payroll or equivalent.
Rule of thumb I usually use is to assume that a third of your money will disappear in tax. For most sensible incomes this is right -- it goes wrong for very low incomes (where the tax-free band is a sizeable proportion) and for very high incomes (where the 40% tax band is a sizeable proportion)
From £4,745 to £31,720 you pay 11% Employee's NI on this part of your salary. Your employer will also be paying 12.8% Employer's NI on top (you never see this in your payslip -- if you get a job paying £10,000 a year, for example, you will actually be costing your employer £11,280 a year including the Employer's NI)
From £31,720 onwards you pay 1% Employee's NI, and your employer continues to pay an additional 12.8% Employer's NI.
However, PAYE is a different story and dependent upon your tax code. Easiest thing is to do a search for "income tax calculator" and see what you can find. Make sure it's for the UK and the 2004/5 tax year. Or find someone who has a copy of Sage Payroll or equivalent.
Rule of thumb I usually use is to assume that a third of your money will disappear in tax. For most sensible incomes this is right -- it goes wrong for very low incomes (where the tax-free band is a sizeable proportion) and for very high incomes (where the 40% tax band is a sizeable proportion)
Last edited by carl; 22 June 2004 at 10:36 PM.
23 June 2004, 08:14 AM
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Employers NI has just gone up to 14%
They may also be making pension contributions, depending whether you are in a company pension scheme or not. Typically these are about another 6%.
They may also be making pension contributions, depending whether you are in a company pension scheme or not. Typically these are about another 6%.
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