Income taxes

I've read income tax is at 22%, but there's some sort of claimed deductable in addition. I'm unsure how it's calculated and am wondering if someone could explain it more simply than the UK government site.

Income tax rates vary by pay brackets, the basic deductions are for the NHS (National Health Service, like Medicare) and Employment Insurance (Unemployement Insurance), some employers offer private health care plans, these would be deducted as well.

Also, if you start work in the UK before your NIN (National Insurance Number) kicks in, you will be taxed at a higher "emergency tax" rate until your employer inputs your NIN number & details onto your pay. You will then recieve a refund of overpayment on taxes either the next pay or two pay later if the employer is on the ball. Most employers here seem to pay on a monthly basis, so its best to plan around that.

The nice thing about working in the UK is that income tax (for the most part) is not dealt with by the employee. It is the responsibility of your employer & the govt to sort out any mistakes & repay or deduct you, you can claim additional rebates etc but for me (unmaried adult no kids) I've never had to contact the tax office, its all been handled between my employers & the tax offices (Her Majesty's Revenue & Customs or HMRC, Previously called the Inland Revenue)

Here's their website if you want to have a look at the rates & pay brackets etc:

http://www.hmrc.gov.uk/

a little off topic, but. here's a great tool for calculating income tax deductions.

http://www.listentotaxman.com

A mate also provided me with this weblink .

http://www.pru.co.uk/home/calculator/income_tax/

Thanks for the tax links in this post, we need to get cracking and file ours.eek! Make sure to check with your employer that you are in the right tax bracket, we had a nightmare last year when we discovered that my hubby was not moved up to the right bracket and we owed a LOT of money to the gov. We pay an obscene amount but c'est la vie when you live in a country like Canada with a good social system.well "good" may be relative when talking about the NHS!

Laura

I don't know what the percentage of tax is, but I just found out I have been over paying for the past 18 months (due to having a temporary NIN) and am owed about £1500! Oh happy day

I lived in the states for 9 years and can't say that I had anymore disposible income despite the lower taxes than I did in Canada or now in the UK. (Paying for medical insurance can take a big chunk out of your income!)

I don't mind paying to get what I hve.

Isn't it nice? I got a nice bonus of £400 after about 3 months of having been taxed on the emergency tax rate a couple of years ago. I love the fact that its not the US the working schlop that has to sort out the forms etc etc for income taxes, its the employers & Tax offices. if only we could get it working like that in Canada *rollseyes*