EMPLOYMENT TAX FOR EMPLOYEES
Free advice to our clients on employment tax
Income Tax is a tax you pay on your income. You do not have to pay tax on all types of income. If you are an employee, you pay tax on money you earn from your employment. Most people pay Income Tax through PAYE (Pay As You Earn). This is the system your employer uses to take Income Tax before they pay your wages. Your tax code tells your employer how much to deduct.
As an employee: you pay 0% on earnings up to £12,570* for 2022/23. Then you pay 20% on anything you earn between £12,571 and £50,270. You’ll pay 40% Income Tax on earnings between £50,271 and £150,000. You also have to pay Class 1 National Insurance Contribution (NIC).
Thus the amount of income tax you pay each year depends on two things; how much income you have earned that is above your Personal Allowance and how much falls within each of the allocated tax bands. As an employee you can claim tax relief on the expenses that you have paid for out of your own pocket. Here comes ZATRS to help you by providing important information and tax advice regarding claiming back the tax you are due. Why not contact us today about your Employment tax and tax reliefs on expenses which you may claim?