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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 £9440, hence the tax code 944L.

The rates of Tax bands for the Tax year 2013/2014 are as follows:-

The PAYE thresholds (the level of earnings at which tax becomes payable) are:-

Weekly: £182.00 (old £156.00 - APR 12)
Monthly: £787.00 (old £675.75 - APR 12)
Yearly: £9440.00

 

The TAX CODE is 944L (was 810L - APR 12)

 

Tax rates are: - Monthly Annual
Basic Rate Tax     20% up to

£2,667.50 

= £2,667*20%=£533.40 (was £2,864)

£32,010 (was £34,370)
Higher Rate Tax   40% over

£2,667.50 to £12,500 

= £9,832.50 =£9,832*40%=£3,932.80

£32,010 (was £34,370)
Additional Tax     45% over£12,500 £150,000



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.