View Full Version : National Insurane and PAYE

17-02-2004, 04:31 PM
Any advice on how to work out NI and PAYE costs? Is there a set formula? Any help would be greatly appreciated as always! Jenny

Sarah Jones
17-02-2004, 04:50 PM
NI for employers is based on their salary level, personal circumstances and benefits received. Once you take someone on, the Inland Revenue will tell you how much to deduct from each gross salary. As a guideline for you the lower rate tax is 10%, basic rate tax is 19% and higher rate tax is 40% for employees.

In addition you need to factor in 12.8% on top for Employers NI on the gross salary figure.

This should give you a good guideline for your plan and cashflow.

Well done for thinking your plan through properly - it is well worth while.

17-02-2004, 04:53 PM
Hi Jenny

It sounds like you are really getting to the nitty gritty. It might be a good idea to put some of your ideas in writing and talk to a Shell LiveWIRE business adviser - they can often point you in the right direction. To find out who to contact in your area register on the shell-livewire website at: https://www.shell-livewire.org/cgi-bin/register.pl

Just on the NI and PAYE you are probably best to go to the http://www.inlandrevenue.gov.uk/ to find out more information.

Good luck