Hi,
I'm trying to work out how to calculate Income Tax. I am 22 years old and i work a 40 hour week with some overtime and i don't earn more than £25k. I don't pay into any pension. I can calculate NIC to the penny, so i know roughly what i am doing.
At the moment i believe to work it out for one weeks pay with the tax code 543L. I should divide £5435 by 52 = £104.519. I then minus the weeks wages before tax by £104.519. The result of that i then calculate 20% of it and that should be the amount of tax.
I have two pay slips with a different amount of hours worked so therefore the amount i get paid is different. I tried to calculate the amount of tax on both pay slips and on one i get a figure that is 6p below the amount i got taxed and the other was 14p above the amount.
Ive just read how to calculate it from this website to make sure i was doing it correctly. I noticed it mentioned something about savings income and you get taxed 10%. Whats that exactly? I pay £30 direct-debit weekly in to a savers account at my bank, is this classed as savings income?
Please may someone tell me the error of my ways.
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