Finance Week • This week you will be….. • Lesson 1 “What Job?” • Choosing a job • Calculating your “take home” salary • Lesson 2 “Where to live” • Rent of buy? • Choosing a property • Lesson 3 “What's the cost?” • Running a property • Lesson 4 “Getting around” • Buying a car • Getting a life
What Job? • What is your ideal job? Discuss
What is tax? • In this country, if you are an employee (i.e. you work for someone else), tax is deducted from your earnings before you receive them. • On your pay slip this is called 'PAYE', or pay as you earn; otherwise known as income tax. • It is collected by the Inland Revenue on behalf of the Government, and is used to pay for things like healthcare, social security and welfare services, defence, roads and education. • The amount of tax you pay depends on how much you earn.
What is National Insurance? • the National Insurance fund was used by the Government to pay for a range of welfare benefits such as • unemployment benefit, • sickness and invalidity benefit, • maternity allowance, • basic retirement pension. • You still need to maintain your National Insurance contributions since they entitle you to these benefits should you wish to claim them.
How is tax paid? • PAYE is the system used by employers to take tax and National Insurance contributions off your pay. They then pay over that money directly to us, the Inland Revenue.
Tax Rates • Your tax code is made up of tax allowances. You will pay tax at the following rates on your earnings • You get charged no tax on the first £5,225 this is called your tax allowance • on the next £2,230 you pay 10% (the starting rate) • on the next £32,600 you pay 22% (the basic rate) • on any income over £34,600 you pay 40% (the higher rate)
What is my NIC? • As well as tax, your employer will usually take off National Insurance contributions (NICs) from your pay. Most employees pay the standard rate of NICs. • Up to £87 a week (£377 a month) you pay Nil • Over £87 and up to £670 a week (over £433 and up to £2,903 a month) you pay 9.4% • Over £670 a week (£2,903 a month) you pay 1% • Above £34,840 a year the rate changes
Calculations! • Use your booklet to calculate your tax and national insurance.
Homework • Use the housing boards in the mathematics department and the library to research the details of properties available in the area you work in. • You must: Record all the details of any properties within the correct area (price, rent, location, etc)