HR Payroll Service : Tax and NI
Tax and NI
UCL tax office details and understanding your tax and NI contributions
Tax and NI
UCL’s tax office details are as follows:
UCL’s tax office reference number is 951/U3
You can write to HMRC for help with questions about Income Tax, including PAYE, tax codes, Marriage Allowance and personal details using the following address
HM Revenue and Customs
PAYE and Self Assessment
Phone : 0300 200 3300
If you wish to contact the National Insurance Contributions office, please visit their website. You will be required to quote your National Insurance Number for all enquiries.
Your National Insurance number
Your National Insurance number is your own personal account number. The number makes sure that the National Insurance contributions and tax you pay are properly recorded on your account. It also acts as a reference number for the whole social security system.
More details about the procedure for applying for a National Insurance Number can be found at the following link.
More details about National Insurance can be found here.
E-Mails from the HMRC
The payroll office is aware of employees receiving E-Mails claiming to be from the HMRC asking for personal information, please do not respond to this E-Mail as the possibility of it being a fraudulent E-Mail are high. For further information on what to do if you receive this E-Mail please follow this link to the HMRC Frauds and Scam emails page at http://www.hmrc.gov.uk/security/fraud-scams.htm
Understanding your tax code and NI contribution letter
Tax is calculated based on your tax code and tax thresholds.
Your tax code is usually notified to UCL through a P45, P46 or Starter Declaration or via HMRC. If your previous employer has issued you with a P45 please ensure you hand it to payroll. If you do not have a P45, please complete a P46 or Starter Declaration and forward this to Payroll Services. The P46 or Starter Declaration is available in the Forms section of the Payroll Services website.
A tax code is usually made up of a set of numbers and a letter. There are many different tax codes in operation for individuals, but below is a brief example of some of the most common tax codes:
Where your tax code consists of a number and then a letter, this will express the amount of free pay you have available before tax is assessed against your income. For example, tax code 1000L means that you can earn £10000.00 per annum before paying any tax. Just replace the ending letter with a 5 to understand how much you can earn per year before payment of tax. If your tax code is different from numbers then a letter, please contract Payroll services who will be happy to discuss your individual coding and what this means for you.
1060L - This is the emergency and standard tax code for tax year 2015/2016. Most employees will correctly be on this code
BR - This is basic rate tax code. Typically this is used for employees that have other sources of income including payments from an Occupational Pension Scheme
0T - This is a code that means you have no allowances taken into consideration. It is usually used if we have received no notification of a tax code (via P46 or Starter Declaration/P45 or HMRC).
K(followed by numbers) – A K code is where your personal allowances are lower than deductions due for benefits or outstanding tax for prior years as advised by HMRC. We will only operate this code if advised via a P45 or directly through HMRC. If you are unsure why you have a K code you should contact HMRC .
Tax Thresholds are updated as per the annual budget statement from the chancellor.
Basic Rate Tax (20% for 2014/2015)
Basic Rate Tax (20%) and Higher Rate Tax (40%) (For 2014/2015)
Higher Rate Tax (40%) only. This is if your tax code is D0.
Additional Rate Tax (45%) only. This is if your tax code is D1
Basic rate 20%
From 1 to £32,010
|From 1 to £31865||
From £1 to £31785
Higher rate 40%
From £32011 to £150,000
|From £31866 to £150,000||
From £31866 to £150000
Additional Rate 45%
From £150,001 and above
|From £150,001 and above
|From £150,001 and above
Once you have taken your free pay from your earnings, tax will be assessed as per the thresholds listed above.
Month One Indicator
If your tax code is followed by a letter "X" or "1" this means that tax will be assessed against your taxable earnings in that month. Otherwise tax will be accessed on a cumulative basis. A cumulative basis will take into account your earnings for the entire tax year before assessing how much tax should be paid this period. The Month One indicator mean that tax will be calculated solely on your earnings this period, and will not assess this against your earnings and tax paid to date during the tax year.
Click Here to use the HMRC Tax Calculator
NI contribution Letter
This dictates the % of National Insurance you pay on your contributions. Examples of common National insurance contribution letters are as follows:
A – Standard Rate NI. This is paid if you are not in a UCL pension scheme. Employees pay 12% and then 2%
D – Contracted Out Rate – Paid where you are in a UCL pension scheme. Employees pay 10.6% then 12% and then 2%
C – For employees who have reached state retirement age. No NI is due.
The percentages above are payable where earnings have reached the levels below:
For tax year 2015/16 the monthly amounts are:
£0 - £676 = No NI Due
£676 - £3337 = Apply relevant %
£3532 - £3337= 12% NI due
£3532 and over = 2% NI due
The NI contribution letter dictates the amount of NI payable. If you are on a different NI contribution letter, and wish to find out the % that is payable in your individual circumstance, please contract Payroll Services who will be happy to advise.
Click Here to use the HMRC National Insurance Calculator