Share Radio
Broadcast online from the UK on shareradio.co.uk
Managing My Money
Week 2 - Income, Taxation and Benefits - Part 2, Episode 4
Share Radio & Open University Business School
''By working faithfully eight hours a day, you may eventually get to be a boss and work twelve hours a day'.
Robert Frost
Welcome
to Managing My Money presented by Glen Goodman and Annie Weston
Tax
PAYE -
'Pay As You Earn': taxation for employed people
Gross pay
Tax deducted
National Insurance deducted
Net pay
Self-employed people must put aside tax to pay later
- Calculated over the financial year, 6th April to next 5th April
- Pay tax in 2 instalments
- Don't spend it before you have to pay it!
Income Tax & NI
- Personal Allowance first
- Then progressive: tax rates rise as income rises (PAYE)
- To reduce income inequality
- NI was originally state insurance for health etc..
- Employers pay NI too, at 13.8% of salary
- NI raises 1/5 of all Government income
Other Taxes
- VAT - Value Added Tax: included in prices in UK
- Stamp Duty - on houses, shares
- Plus many , many more ..
Income Tax
- First £12,571 (personal allowance) at 0%*
- Next £37,700 or part thereof at 20%
- Next part up to £125,140 at 40%
- Over £125,140 taxed at 45%
- So annual income of £25,000 would mean tax of £2,486
- Annual income of £80,000 would mean tax of £19,342
- described as 'Progressive taxation'
- * no personal allowance if earning over £125,140
National Insurance
- First £242 per week - no charge
- Next £725 per week - you pay 8%
- Over £967 per week - you pay 2%
- Also your employer pays 13.8%
- So £25,000 pa would mean you pay £993 NI
- At £80,000 pa you would pay £3,610 NI
2024/25 rates of -
Benefits
.. and the Poverty Trap
Welcome to -
Ed Bowsher, Share Radio's former personal finance expert.
He covers big financial issues in a simple, easy-to-understand way at Share Radio, and here he explains how good ideas added together can get very complicated.
Bungling Bill and the Benefits system
Next:
Take the Week 2 quiz/test at www.shareradio.co.uk - as you take each week of the course, your results will build up on your personal dashboard.
Managing My Money:
is broadcast by Share Radio and is based on the Open University Business School online course of the same name.
Your presenters are Glen Goodman and Annie Weston.
Managing My Money - Week 2, Episode 2
By Share Radio
Managing My Money - Week 2, Episode 2
These illustrations accompany the Managing My Money course broadcast by Share Radio, based on the Open University online course of the same name. Week 2 is entitled 'Income, Taxation and Benefits'. This is the second episode, after which please take the test for Week 2.
