Out of interest more then anything but assume a salary of 100K
They will pay 40% on earnings between 43K -> 100K
What about NI?
They will pay 40% on earnings between 43K -> 100K
What about NI?
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about 11.6 but there are other rules -
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I can't remember exact thresholds (they are on HMRC site) but they would pay 11% from about £7k until £44k, and then 1% above that.
From April, it goes up to 12% and 2% respectively
I.e. About £4.5k in NI, rising to £5.5 from April, on a salary on £100k
All in all, about 35% tax including PAYE
Try The Salary Calculator - 2011 Tax CalculatorLast edited by MrRobin; 23 March 2011, 21:37.It's about time I changed this sig...Comment
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Employers' NI is 12.8% above £5500 ish IIRC, with no limit - I think. So that's another ~£12K in tax, although that's before gross salary so the employee doesn't really pay that (but if you're comparing to contracting you should include it).
So on the £112K cost to the employer of employing someone at £100K salary, ~£47K is tax, or 41%. I think.Will work inside IR35. Or for food.Comment
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Aside from your personal allowance, the rates areOriginally posted by DeludedAussie View Post
Basic rate: 20% £0-£37,400
Higher rate: 40% £37,401 - £150,000
Additional rate: 50% Over £150,000Comment
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