What Tax Will I Pay


 The Personal Allowance for 2019 to 2020 is £12,500. The tax code is 1250L.

 If your tax code is BR or 0T it may be because you may have not completed a New Starter form,handed in a P45 or the HMRC have notified us.

Tax thresholds, rates and codes

The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.


England ,Wales and Northern Ireland

PAYE tax rates and thresholds

2019 to 2020

Employee personal allowance

£240 per week

£1,042 per month

£12,500 per year

UK basic tax rate

20% on annual earnings above the PAYE tax threshold and up to £37,500

UK higher tax rate

40% on annual earnings from £37,501 to £150,000

UK additional tax rate

45% on annual earnings above £150,000


Scotland

PAYE tax rates and thresholds

2019 to 2020

Employee personal allowance

£240 per week

£1,042 per month

£12,500 per year

Scottish starter tax rate

19% on annual earnings above the PAYE tax threshold and up to £2,049

Scottish basic tax rate

20% on annual earnings from £2,050 to £12,444

Scottish intermediate tax rate

21% on annual earnings from £12,445 to £30,930

Scottish higher tax rate

41% on annual earnings from £30,931 to £150,000

Scottish top tax rate

46% on annual earnings above £150,000


Please note as you are paid weekly your tax free allowance is broken down into weeks. So if the standard tax code is 1250L it means that you can earn £240 per week tax free before deductions.e.g. 1250L =£12,500 / 52 working weeks in a year = £240.38 tax-free Personal allowance per week.


Nearly everyone who lives in the UK gets a tax-free Personal Allowance.This is the amount of income you can receive without having to pay tax on it.

  • Your tax-free Personal Allowance is spread equally over the tax year.


If you are interested in calculating your tax you can use this calculator tool - http://www.listentotaxman.com/


Please note if your Tax code has wk 1 , It is advised that you complete your timesheets on a weekly basis, for example if you enter timesheets for 2 different weeks in the same payroll week you will only receive £240 tax free instead of £480 tax free. 



Do Students have to pay Tax on Part-Time jobs?


HMRC have now withdrawn PAYE and NI concessions for students. 

As of April 2013 students will be treated in the same way as all other employees for PAYE tax and National Insurance contributions purposes.

 

I think I am being taxed too much?


The first thing to check is your Tax code on your most recent  payslip. If your Tax code is BR (Basic Rate) or 0T it means you are being emergency taxed. 

 

This may be because:

 

1 - You have not submitted your P45 or New Starter Checklist to payroll

2 - You have declared you are working in another job where your earnings are higher

3 - The HMRC have notified us to change your tax code to a lower tax threshold allowance 

 

Another reason may be because you have submitted 2 or more timesheets in one week.


If you would like to discuss your tax further please contact customer.services@keystone-jobs.com



Who do I talk to about claiming Tax back?


There are various ways to claim tax back. You may have been taxed heavily as we may have not received a New Starter Checklist or P45. If this is the case please complete a New starter checklist and depending on what statement you declare you could get your tax back in your next wage, otherwise we will wait to hear from the Tax office to inform of your correct tax code.


Claiming tax back from previous years?

The time limit for making a claim is five years from 31 January following the 5 April end of the tax year. For example, a claim for 2003-04 must be made by 31 January 2010. What you will need to do is contact the tax office and tell them you believe you can claim some tax back. They will instruct you what you need to do.


Can I claim tax back for someone else?

You can claim tax back on behalf of someone else if you are:

  • the parent of a child (under 16 in Scotland or under 18 in England, Wales and Northern Ireland)

  • the next of kin of someone who is incapable of managing their own affairs

  • a relative of someone who would have difficulty in making a claim, such as someone in poor health

  • Others who have an official status such as a guardian or someone appointed by the courts, can also claim.

If you are thinking of claiming tax back for someone else please phone the tax office (see below) for details about what to do next.


Tax Office Contact details:

HMRC

Lothians Area

Saughton House, Bromhouse Drive

Edinburgh  EH11 3XG

Payroll Tax Ref: TS02 475/WB19408

Telephone number: 0300 200 3300




Tax Documents & Where to send Them


** It is important we receive your completed tax forms quickly to you don't get put on emergency tax - which will over tax you. **

 

Relevant tax forms: P45 or New Starter Check List


Is this your first job?

 

 Please provide this to the payroll department as . 

 

YES

  • You will need to complete a New Starter Checklist available from here

  • It is important the New Starter Checklist is completed before your first pay day so that we know what tax code to use.


NO 

  • If you have worked prior to this job in the current tax year your previous employer should of issued you a P45.

  • The P45 this will give details of your earnings, the tax you have previously paid and your current tax code.

  • If your previous employer did not issue you a P45 you can still complete a P46 (see above).


Where do I send my tax documents?

  • Please email your P45 or New Starter Checklist to customer.services@keystone-jobs.com 



Will I received a P60?


You will only receive a P60 if you are currently working at the turn of the tax year. if you have worked at the turn of the tax year please email payroll@keystone-jobs.com and request for them to email you your P60.

 

If your leave date is prior to this date ( April 5th ) you will receive a P45.


National Insurance - Overview


What is a National Insurance Number?

  • Your National Insurance number is your own personal account number. 

  • The number makes sure that the National Insurance contributions and tax you pay are properly recorded on your account.

  • It also acts as a reference number for the whole social security system.


How do I apply for a National Insurance Number?


Who pays National Insurance?

  • You pay National Insurance contributions if you're an employee or self-employed and you're aged 16 and over, as long as your earnings are more than a certain level.

  • If you're employed you stop paying National Insurance contributions as soon as you reach State Pension age.

  • If you are self-employed, you stop paying Class 2 contributions as soon as you reach State Pension age and Class 4 contributions from the start of the tax year after the one in which you reach State Pension age.

  • State Pension Ages:

    • State Pension age is 65 for men born before 6 December 1953 and 60 for women born before 6 April 1950.

    • State Pension age for women born on or after 6 April 1950 is gradually increasing and will reach 65 in November 2018. From December 2018.

    • State Pension age for women and men will gradually increase from 65 and reach 66 by October 2020.

  • Some people also pay voluntary National Insurance contributions.

  • For example, you might choose to pay them if you:

    • aren't working and are not claiming state benefits

    • haven't paid enough National Insurance contributions in a year to count for the State Pension or other long term state benefits

    • live abroad and want to maintain your state benefits entitlement


How much National Insurance will I pay?

  • The rates shown below are for the 2019-20 tax year:


Class 1 National Insurance thresholds

You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).

Class 1 National Insurance thresholds

2018 to 2019

LEL

£118 per week

£512 per month

£6,136 per year

Primary Threshold (PT)

£166 per week

£719 per month

£8,632 per year

Secondary Threshold (ST)

£166 per week

£719 per month

£8,632 per year

Upper Secondary Threshold (under 21) (UST)

£962 per week

£4,167 per month

£50,000 per year

Apprentice Upper Secondary Threshold (apprentice under 25) (AUST)

£962 per week

£4,167 per month

£50,000 per year

Upper Earnings Limit (UEL)

£962 per week

£4,167 per month

£50,000 per year



STUDENT LOAN


Student Loan is deducted if you have stated you have a student loan in your New Starter form or the HMRC have notified your employer to make deductions. Please see below the threshold rates before Student Loan is deducted.


Rate or threshold

2019 to 2020 rate

Employee earnings threshold for Plan 1

£18,935 per year

£1,577.91 per month

£364.13 per week

Employee earnings threshold for Plan 2

£25,725 per year

£2,143.75 per month

£494.71 per week

Student loan deductions

9%

Employee earnings threshold for Postgraduate loan

£21,000 per year

£1,750.00 per month

£403.84 per week

Postgraduate loan deductions

    6%