The short version: Wage taxes are the taxes deducted from your earnings. In the UK, that mainly means Income Tax and National Insurance, both taken through PAYE if you’re employed.
How much do you pay?
Income Tax rates depend on how much you earn. There’s a tax-free Personal Allowance, then basic rate, higher rate, and additional rate bands. National Insurance is charged at different percentages depending on your earnings level.
Who takes them?
If you’re employed, your employer calculates and deducts them based on your tax code. They send the money to HMRC on your behalf. Self employed people calculate and pay their own through Self Assessment.
Can they be wrong?
Yes. If your tax code is incorrect, you’ll pay too much or too little. Check your payslip and query anything that looks off. HMRC can adjust your code or issue refunds if there’s been an error.
Think you’re paying too much in wage taxes? Let us check your situation.
