TAX question - how much can I earn before I have to pay tax?

[Holymoly321]

Am thinking of trying to find part time work as DS is now 17months and needs to be with other kids. Nursery is expensivo so would need to work to pay for it (although would prob only earn enough just to pay for it). BUt before I start looking for a job, I want to work out if it's going to be worth it - the wages after tax etc. I would only want to work 2 and a half days really - three at the most.

[JanH]

The threshold is around £5000, smiling. Then you pay 10% tax on the next c £2000 and then 20% after that.

I will find you a link. There is NI too of course, but my monthly gross is around £600 and I pay less than £100 in tax and NI so it's very little at those levels.

[JanH]

Tax thresholds and bands here .

It's 10% on the next £2150 after the £5K+, and then 22% (not 20%) on the next £33K after that.

NIC rates and allowances (given as weekly amounts, not annual)

HTH

[nannynick]

Listen To Taxman - PAYE Calculator will let you play around with some figures to calculate your take-home pay, after Tax and NI deductions.

To pay ZERO tax, you must not earn more than £96.82 per week according to the ListenToTaxman calculator.

Play around with figures, just change the Gross Income (either per week, or per month) to see how much tax and NI you pay, on what you earn.