Rate of Tax
As instructed by the HM Revenue and Customs, the University is legally obliged to deduct the correct amount of tax due on all payments to employees subject to Pay As You Earn (PAYE). There are exceptions to this and details are available in the Administrative Handbook under Section C - Financial.
Tax free allowances are based on an individual's tax code issued by HM Revenue and Customs. The normal single person's allowance per annum is £6479, hence the tax code 647L.
The rates of Tax bands for the Tax year 2009/2010 are as follows:-
Starting rate for savings: 10% up to £2440.00
Basic rate: 20% up to £37400.00
Higher rate: 40% over £37400.00
From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit, then the 10 per cent starting rate for savings will not apply.
The rates are subject to change each year with the Government's budget and are due to change in April for the remainder of that tax year.