Calculating income tax

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Im a bit confused with this :?

I can work it out on a yearly income, but I dont understand how you would do it monthly. My teacher explained that you would work it out for the year & then divide it by 12. But then what happens if they work overtime a few months or get a bonus?

Can anybody explain it to me please?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Calculating income tax

    can't you just calculate the hours worked by the employee, calculate how much money those hours equate to, and then times that amount by the precentage that is PAYE and NI

    I have a spreadsheet that I have made which calculates my PAYE and NI based on PAYE being 15% and NI being 8%

    I hope nobody comes along and tells me different - a;though, I would rather have someone telling me I am calculating it right... obviously this changes with the amount you earn, can someone tell me what percentage is taken from me on a monthly basis on basic salary of £20,500?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Calculating income tax

    What about the change of rates for different thresholds? How have you allowed for that?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Calculating income tax

    see studdy buddy - I asked that on there, I should have also put it here but i didn't want to double post so i went into detail on inly 1 thread.

    Ta
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Calculating income tax

    Wow! Im totally lost! :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Calculating income tax

    Jamie and Chris have been discussing this on the Study Buddy thread:

    http://www.aat.org.uk/forums/posts/list/3300/13353.page

    Ignore the gossip!

    Helen

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