Not a payroll human but someone who lives in the UK.
It does not, we have various brackets that you fall into as your income rises.
- No income tax is paid on the first £12,500 of your earnings
- 20% on everything between £12,500 and £50,000
- 40% on anything between £50,000 and £150,000
- 45% on anything over £150,000
The way that HMRC likes to figure it out is that you take the salary of the person in question, and then you take into account all of the above bracketing plus more little gotchas. And spread their tax over the course of the whole year as evenly as possible.
This gets more complex when you change jobs or get a new salary midway through the tax year and then payroll software has to account for that and try and even out all the payments for the rest of the year.
It's quite complicated. Income Tax is spread over the year as the first £12k or so is not taxed, so they try to use that balance across the 12 months. We also have something called National Insurance through which eligibility for a state pension is calculated and that's calculated weekly/monthly. There are also student loan repayments, and depending on when you studied at University it changes the threshold you repay at.
It does not, we have various brackets that you fall into as your income rises.
- No income tax is paid on the first £12,500 of your earnings - 20% on everything between £12,500 and £50,000 - 40% on anything between £50,000 and £150,000 - 45% on anything over £150,000
The way that HMRC likes to figure it out is that you take the salary of the person in question, and then you take into account all of the above bracketing plus more little gotchas. And spread their tax over the course of the whole year as evenly as possible.
This gets more complex when you change jobs or get a new salary midway through the tax year and then payroll software has to account for that and try and even out all the payments for the rest of the year.
Hopefully that makes some sense!