When you
receive your wages - either once a week or once a month - you'll
notice that some money will already have been taken off. Once
you start earning a certain amount of money (usually about £5,000),
you'll start paying PAYE (Pay As You Earn) tax. This tax
goes to the government and helps pay for things such as schools,
hospitals and roads.
You'll also pay
National Insurance contributions which go towards health and social
care. This is what your National Insurance number is
for. If you've started a pension or have joined a trade union
then these payments may also be taken off your
wages.
Your tax code
will identify how much you are being taxed. If
you're self-employed you need to complete a tax return and
send the inland revenue a cheque when what you owe has been
agreed.
The amount you
can earn before paying tax will vary depending on what
the chancellor has decided at the most recent budget but it
will also vary from person to person.
To work out
how much you'll be paid, go to
'earning
money'. There's also advice on
understanding
your
payslip.
Useful
links:
Inland
Revenue
