Budget News

The Chancellor today confirmed that the annual tax threshold from April 6th will rise to £10,000. As nearly all of our temporary workers are paid weekly, this is probably easier to understand as £192.30 per week before your income is taxed at the standard rate of 20%.

Remember that the threshold is cumulative, which means that your income and threshold is effectively averaged over the weeks in the tax year (ie the week number on your payslip), so the actual impact may vary slightly if, for instance, you work overtime or shorter hours. Overall however, if you work regular hours, you can assume that the figure of £192.30 is what you can earn before paying tax.

National Insurance for workers comes into play at a lower rate, and this is set at £153 per week (regardless of your tax code this is always the weekly figure). You pay 12% of your income above that in National Insurance contributions.

If you need any help with PAYE (tax) or National Insurance information, you can always call the office, or email Duncan at duncan@extramanrecruitment.co.uk