Tax and Holiday...

[blackwhite]

Hello Forum Members...

Soon I will be starting work as a trainee chef in London.

My wage will be about £8.00 per hour with 4 weeks (I believe) paid holiday each year.

The Personal Allowance is £11,500 this fiscal year.

Am I CORRECT my assuming that this is worked out by saying for example...
Lets say am on £500 per week wage BEFORE tax is that I get the first 23 weeks of £500 in my hand (£500 x 23 = £11,500)

After this I pay 20% tax on the £500 per week and take home £400 per week.

Is it OK to say in my first year and EVERY year that after every 12 weeks I can take a FULL 7 days paid holiday.

ALL help is VALUED and APPRECIATED and I also THANK YOU for your time in advance for your help with my current enquiry.

Best Ever.

Paul

[robbob]

Hello blackwhite (toontoon?)

congratulations and good luck with your new career

Am I CORRECT my assuming that this is worked out by saying for example...
Lets say am on £500 per week wage BEFORE tax is that I get the first 23 weeks of £500 in my hand (£500 x 23 = £11,500)

Not quite

Presuming you have had nil income since 6/4/16 - then it works as follow
(1) you will need to ensure you have full 1150L cumulative tax code - if its week 1 or month 1 you will only get a per period element of the allowance - you may need to contact hmrc to sort this

When on the correct cumulative code you get a pro rata element of the personal allowance for the tax year to date - so at week 30 in the tax year you will have 30/52*11,500 of the personal allowance available and not pay tax on that amount at week 40 it will be 40/52*11500 and so on.

If you have had nil income and earn £500 per week from now it will only be very near the end of the tax year when you pay tax.

Note you will have NI deducted from salary to - this is always calculated per pay period and will be a deduction of 12% on earnings over £157 per week

Is it OK to say in my first year and EVERY year that after every 12 weeks I can take a FULL 7 days paid holiday.

You get at least5.6 weeks paid holiday during the year - as to when you can take that will depend on your contract of employment and whatever agreements you can make with your employer - book em early Danno is normally the best plan. Note bank holidays are normally ignored in calcs - so its not an automatic right to 5.6 weeks + bank holidays

[blackwhite]

Thanks for that...

Best Ever.

Paul

[blackwhite]

Hello Community Members and Robbob...

Here are a few questions I need to workout...

Presuming you have had nil income since 6/4/16 - then it works as follow

What do YOU MEAN , nil income.

1) I have had NO PAID employment since 06/04/16

2) I was just on state benefits...

For the forum records , I have been on state benefits for a couple of years...

(1) you will need to ensure you have full 1150L cumulative tax code - if its week 1 or month 1 you will only get a per period element of the allowance - you may need to contact hmrc to sort this

Does that mean , once I start working , I tell HMRC , that I need code 1150 (zero) L , to pay the CORRECT TAX , on what form ???

When on the correct cumulative code you get a pro rata element of the personal allowance for the tax year to date - so at week 30 in the tax year you will have 30/52*11,500 of the personal allowance available and not pay tax on that amount at week 40 it will be 40/52*11500 and so on.

K , so if in week 1 (one) of THE START of the fiscal tax year (06/04/17) , it would be 1/52*11,500 and so on...

If you have had nil income and earn £500 per week from now it will only be very near the end of the tax year when you pay tax.

Am UNSURE of this statement ???

Note you will have NI deducted from salary to - this is always calculated per pay period and will be a deduction of 12% on earnings over £157 per week


So , is this worked out , by saying £500.00 (before tax) minus £157.00 = £343.00 per week and I pay NI of 12% , on this...

What is NI paid for , is it JUST MY PENSION !!!

You get at least 5.6 weeks paid holiday during the year - as to when you can take that will depend on your contract of employment and whatever agreements you can make with your employer - book em early Danno is normally the best plan. Note bank holidays are normally ignored in calcs - so its not an automatic right to 5.6 weeks + bank holidays

If I understand this correctly , 5.6 weeks paid holidays (this fiscal year) , but some employers , may say 5.6 weeks , with OR without bank holidays...

All help is VALUED and so much APPRECIATED , with my current enquiries and I look forward to your reply/response in due course...

Best Always...

Paul

[blackwhite]

Hello Tax Community

I will be starting work about the 15 Feb 2018 as a trainee Chef (At last my DBS has been printed)…

Trying to work out my Tax & NI for my current salary at £9.60 per hour and a 40 hour working week.

This is week 45 of the fiscal year (correct if am wrong) would it then be worked out like this:
45/52 * 11,500 = 9,951.92 – 19,968.00 = 10,016.08 / 52 * 0.20 = £38.52

Is this CORRECT and I pay Tax of £38.52 for week 45 and do the same for week 46 and so on…

NI is it : weekly salary - tax - £157.00 AND THEN take 12% of the remaining amount , so £22.62

All help is VALUED and SO MUCH appreciated with my inquiry…

Best

Paul