Tax And National Insurance

What tax do I have to pay?

All employees have to pay income tax on taxable income. Employees will also have to pay national insurance contributions, provided they earn over the minimum threshold which is currently set at £84 per week.

Why do I need to pay taxes?

You need to pay taxes because it's the main source of income that the government has in order to spend on public resources. For example: the National Health Service, incapacity benefits, job seekers allowance and other public services are paid through our taxes.

What does PAYE mean?

PAYE is Pay As You Earn. It is the process by which your employer will deduct the taxes and the National Insurance contributions that you are required to pay from your salary, before they pay you your salary.

What is Schedule-D?

Income Tax on Schedule-D is charged to people who are self-employed, who are entitled to or receiving an income.

What is Schedule-E?

Employees liable to tax on to Schedule-E will be taxed on taxable benefits and income.

What is National Insurance?

National Insurance is a system of taxes which were introduced in 1911 to help fund the National Health Service and the State Pension.

Why do I have to pay National Insurance?

You have to pay National Insurance because obviously it goes toward funding public services. Also, if you don't pay National Insurance, you might not receive a full state pension when you retire.