Monday, April 18, 2005

Accounting - don't you just love it.

Wondering why your pay just went down by about £8 a month. Well it's due to changes in the band where you pay the full 11% rate of National Insurance.

Although the lower limits (exempt and zero rated amounts) were raised slightly (by about £3 a week) the upper limits for the band were raised by £20 a week.

So if you earn more than the top threshold (£32,760) a year you will be paying 11% NI on an extra £17 a week of your income.

This works out at just under £2 (11% of £17) a week (or around £8 for those paid monthly) extra.

The new 05/06 NI tables are here:
http://www.hmrc.gov.uk/nitables/ca38.pdf

Exciting stuff eh! :-P

2 comments:

jamie said...

How was Tenerife?

DeathOwl said...

Pretty wicked. Will post up a summary later :-)