Understanding your pay

Income Tax and National Insurance

Pay As You Earn (PAYE)

If you don't provide a P45 or a completed HMRC Starter checklist when you start work, you will pay tax at 20% on all of your taxable earnings (and 40% or 45% on higher earnings).

Tax Codes

Your tax code, which provides details of your tax free allowance for the year, is calculated by HM Revenue & Customs (HMRC) and electronically notified to Payroll.  You will also receive a copy of the notice by post.  In the event of a query, you should ring HMRC on 0300 200 3300, quoting your National Insurance number and LCC PAYE reference which is 083/LCC.

HMRC will not discuss your tax code with your employer

More information about tax codes.

National Insurance (NI)

If your earnings exceed the Primary Earnings Threshold, you'll pay National Insurance Contributions (NICs) at a rate of 12%, from the age of 16 until you reach State Pension age.  Deductions are made at 2% of earnings above the Upper Earnings Limit

Calculate your state pension age

If you stay in employment after State Pension age you will cease to pay NI contributions although your employer will continue to do so on your behalf.  You may need to provide proof of age for example passport or birth certificate.

More information about National Insurance.