How does UK Tax work? - What you need to know about HMRC & PAYE 

Still working on my video editing skills...

they're hiding from the tax man

@@fastfinance8837 You know you can re-upload videos right? A few people have commented on the music and on your low voice.

I literally turn the sound off and just read sub. Too annoying

CHUTIYA H YE HI I M FROM INDIA

Ajayraj singh champawat no one cares

@@ajayrajsinghchampawat6720 HI I AM FORM GERMANY

Ajayraj singh champawat HI I M FROM IRELAND

@@ajayrajsinghchampawat6720 HI I AM FROM IRELAND ALSO

good

@@harryclark9374 fuck you

It's not that bad you just suck with money.

It's meant to be. The lawless government and their overlords don't want people to increase their wealth.

@@bobmarley-ml7wn It is that bad. The government and their overlords are fleecing people and keep claiming they are stretched.

you guys are so fucking rude

Sorry to hear that

your employee has the wrong tax code or hasn't got one from you. in this case. you'd be charged emergency tax and get this back once the correct code is given. you should get the money back in terms of HMRC cheque or through an additional payment refund showing on your payslip

Wouldn't that be the national insurance tax? I believe it's 12% (for your income over £166/week)

It depends on whether you want to be a sole trader or a limited company. Both have pros and cons depending on your situation. I would strongly recommend you talk to an qualified accountant - a good one will save you more than they cost!

Fast Finance ok thanks .

Please let me know if i can help

Hi, I'll certainly add it to the list but I have a lot of videos to make and not so much time to do them. Thanks!

yes you can definitely hear him but it’s obvious he’s whispering and not speaking clear and on top of that the music is fat loud

You are correct, this is a fallacy. People assume moving up a tax bracket or doing lots of overtime means you are somehow liable to pay additional tax. In reality everyone pays tax according to a standard set of rules. For example, if you earned 40k across a year or 40k in one month and then nothing for the next 11, you'd pay the same amount of overall tax.

Real Eyes Realise Real Lies I managed to differentiate between both. Check your settings on your speakers. The music is louder but he isnt unheard over it.

FU$$$ THE MUSIC

Replace the 11k with 12.5k, as it's updated for 2019/20 Tax year (6th April 2019 - 5th April 2020) *PLEASE CORRECT ME IF IM WRONG* The first £12,500 (salary per year) you earn is tax-free, which means HMRC cannot take the first potential £12,500 that's meant to go in your pocket per year, if they think your annual salary is going to be £12,500 (aka £916.67 Gross Income per month), but they will take National Insurance (it's mandatory anyway, to qualify for state pension). So in summary, if you earn OVER £916.67 per month (estimate £12500 per year), you have to pay 20% income tax on the difference. EXAMPLE BELOW: Suppose you earn £1200 this month, your first £916.67 is pretty much "income tax" free. The remaining taxable income is: £1200 - £916.67 = £283.33. Now you're going to get shafted with the 20% tax on the additional income, so... 20% x £283.33 = £56.67 So you will pocket: £916.67 + (£283.33 - £56.67) = £1143.33 AND I haven't even calculated National Insurance yet, so you will take home a little less than £1143.33.

A L I think your calculation is wrong 12500/12 is 1041.67

WORK IT OUT

Hi. £1k per week is obviously £52k per year. This would put you into the 40% tax bracket for some of your income. Assuming you have no other benefits which affect your tax code you would pay a total of £9496 in tax over the year. There would also be National Insurance contributions totalling £4564. This means your weekly earning after tax and NI would be £730.

1,000*4= 4,000 a month *12= £48,000 is your yearly income. As whats on the video, i think, 43,000-11,000= 32,000 32,000*20%=6,400 5,000*40%=2,000 So it will be £8,400

Close but you have assumed four weeks per month when in reality it is 4.33 hence starting at 52 weeks per year in the example above.

You can claim your allowance back

Hi. you start paying National Insurance when you earn above £680 per month. This page might help: www.gov.uk/national-insurance/how-much-you-pay

You personal allowance diminishes gradually as you earn over £100k. The benefit of going from say £105k to £110k still outweighs the loss the of the personal allowance but it is still noticeable. You will pay the standard rate tax on the first part of your earnings, 40% on the next part and 45% anything above £150k. So you don't pay 40% tax on everything. HMRC taxes you through PAYE but if you receive additional funds (such as dividends or investments) you will need to declare these on a tax return.

Please let me know if you looking self assessment i can call you when i m in office

Correct. Well as of 2019/20, it's actually £12,500.

@@fastfinance8837 Thank you.

No because like he said you have to earn at least 11K a year before being taxed. You get to keep your monies as far as I can tell

Grizzle Thanks for your Response

No only until you earn more then £11000

Firstly, kudos for starting an online business at your age, it's a fantastic learning experience! You don't have to pay national insurance until you are 16 but sadly you still need to pay tax. You need to register as self-employed with HMRC and will be taxed as an adult. You can still earn the tax free allowance as well.

I’m 11 and don’t even have a business and stuff, but I just wanna learn how to pay tax

@@moodflop808 lol