# £1,050 After Tax Explained

Now let's see how we've calculated your tax on your £1,050 income.

• You have a tax free personal allowance of £12,500 (for earnings between Apr 2019-Apr 2020) – this means that on £12,500 from your salary you won’t pay any tax.
• As your total yearly earnings of £1,050 are below this personal allowance, you will pay no tax on your income.
• However, even if you pay no tax, you might still have to pay National Insurance on some part of your £1,050 income.
• Please note: There are different tax rules for Scotland. To calculate you tax and net pay for Scotland, please use our advanced tax calculator.

# National Insurance Explained

Apart from income tax, you might also need to pay National Insurance if you earn above £8,632 this financial year (or above £719/month).

• In your case, as your total yearly income of £1,050 is below this threshold, it means that you'll pay no National Insurance either. This is how National Insurance works in the financial year 2019-2020:
• Here is how NI brackets Works in the UK:
• You have a NI free earning bracket - you won't have to pay NI for the first £8,632 that you are earning in a year. If you earn above this sum: 12% NI on the earnings between £8,632 and £50,000
• You’ll pay 12% NI on the earnings between £8,632 and £50,000
• You’ll pay 2% NI on the earnings above £50,000

# £ 1,050 after tax break-down

 Year Month Week Day Hour Gross income £1,050 £88 £20 £4.00 £0.50 Personal allowance £12,500 £1,042 £240 £48.00 £6.00 Total taxable £0 £0 £0 £0.00 £0.00 Tax £0 £0 £0 £0.00 £0.00 National insurance £0 £0 £0 £0.00 £0.00 Net pay £1,050 £88 £20 £4.00 £0.50

# Payslip for £1,050 salary

This is how your payslip looks like, if you earn £1,050 per year.

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Employee No
015
Employee Name
Theresa May
Process Date
04/Apr/2020
National Insurance Number
NH000000F
Payments
Salary
Units
4.00
Rate
0.50
Amount
88
Deductions
PAYE Tax
National Insurance
Amount
0
0
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