4 Half-time quiz
How much in income tax and National Insurance Contributions (NICs) would be paid by someone in England, Wales or Northern Ireland earning £56,000 in 2024/25?
The tax-free personal allowance for the year was £12,570 and the rate of tax on incomes above this (and up to £50,270) was 20%. Above this level the higher rate of tax of 40% started to apply.
NICs were payable at 8% on earnings over £12,570 and at 2% on earnings above £50,270.
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.
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 2024/25 | ||
| Income from employment | £56,000 | |
| Threshold for paying National Insurance contributions (NICs) | ||
| NICs % | on | |
| NICs % | on | |
| NICs to be paid in the year 2024/25 | ||
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Answer
| Income from employment or pension | £56,000 | |
| Minus personal allowance | £12,570 | |
| Leaves taxable pay of | £43,430 | |
| Basic rate 20% | on £37,700 | £7,540 |
| Higher rate 40% | on £5,730 | £2,292 |
| Tax to be paid in the year 2024/25 | £9,832 | |
| Income from employment | £56,000 | |
| Threshold for paying National Insurance contributions (NICs) | £12,570 | |
| NICs 8% | on £37,700 | £3,016 |
| NICs 2% | on £5,730 | £114.60 |
| NICs to be paid in the year 2024/25 | £3,130,60 | |
Note that NICs are not paid on pensions.