4 Half-time quiz
How much in income tax and National Insurance Contributions (NICs) would be paid by someone earning £56,000 in 2019/20?
The tax-free personal allowance for the year was £12,500 and the rate of tax on incomes above this (and up to £50,000) was 20%. Above this level the higher rate of tax of 40% started to apply.
NICs were payable at 12% on earnings over £8,632 and at 2% on earnings above £50,000.
Information about income tax is provided in Section 2 and details about NICs are given in Section 3.
If you find it helpful, work out your answer using the following process.
Activity _unit3.5.1 Half-time quiz
| Income from employment or pension | £56,000 | |
| Minus personal allowance | ||
| Leaves taxable pay of | ||
| Basic rate % | on | |
| Higher rate % | on | |
| Tax to be paid in the year 2019/20 | ||
| Income from employment | £56,000 | |
| Threshold for paying National Insurance contributions (NICs) | ||
| NICs % | on | |
| NICs % | on | |
| NICs to be paid in the year 2019/20 | ||
Interactive feature not available in single page view (see it in standard view).
Answer
| Income from employment or pension | £56,000 | |
| Minus personal allowance | £12,500 | |
| Leaves taxable pay of | £43,500 | |
| Basic rate 20% | on £37,500 | £7,500 |
| Higher rate 40% | on £6,000 | £2,400 |
| Tax to be paid in the year 2019/20 | £9,900 | |
| Income from employment | £56,000 | |
| Threshold for paying National Insurance contributions (NICs) | £8,632 | |
| NICs 12% | on £41,368 | £4,964.16 |
| NICs 2% | on £6,000 | £120 |
| NICs to be paid in the year 2019/20 | £5,084.16 | |
Note that NICs are not paid on pensions.