1. Money Matters
Key Stage 4 & 5
Payslips

2. It’s just a job… ( average yearly salaries in UK)
£211, 068
High pay ( £)
£67, 060
£50, 526
Between £20,000 and £51,000,000
£28,00
High skill /qualifications
Low skill /qualifications
REF 4A: The average salary of an actor varies considerably. In the UK only 1 in 20 actors earn over £20,000 but some actors earn in the millions. Daniel Radcliffe’s average hourly salary is £207,000! On each click the lowest to the highest paid will appear
£25,962
£23,000
£22,000
£22,679
£15,000
Low pay ( £)

3. Payslips
REF 4B

4. What’s on a payslip Gross Pay – what you earn before any deductions
Tax Code – tells you your tax allowance for the year
Tax Period – the tax year starts on April 6th and runs until 5th April the follow year. So the first payslip after the 6th April would be tax period 1
Deductions:
Tax – 20% on earnings over £10,000 per year
NI – 12% of earnings over £ per year
Net Pay – Is the amount paid to you after deductions are taken from the Gross Pay.
REF 4B

5. Income Tax Personal Allowance: up to £10,600 tax free
Earnings over that amount are taxed at:
£0-£31,785 – 20%
£31,785 - £150,000 – 40%
Over £150,000 – 45%

6. Morris is a garbage collector….
He earns £18,000 per year
Personal allowance of £10, 600
£18,000 – 10,600 = £7,400
Morris will be taxed on £7,400 of his earnings
£7,400 falls into the 20% tax band
20% = £1,480
So Morris will pay £1,480 tax per year
Annual Net pay: £18,000 - £1480 = £16,520

7. Megan is a hairdresser….
She earns £22,679 per year
Personal allowance of £10, 600
£22,679 – 10,600 = £12,079
Megan will be taxed on £12,079 of her earnings
£12,079 falls into the 20% tax band
20% = £2,415.80
So Megan will pay £2, tax per year
Annual Net pay: £22,679 - £2, = £20,263.20

8. Mike is a doctor…. He earns £50,526 per year
Personal allowance of £10, 600
£50,526 – 10,600 = £39,926
Mike will be taxed on £39,926 of his earnings
£31,785 falls into the 20% tax band
20% = £6,357
£8,141 falls into the 40% tax band
40% = £3,256.40
So Mike will pay £9, tax per year
Annual Net pay: £50,526 - £9, = £40,

9. For earnings over £3,532 a month you pay 2% National Insurance…
If you earn between £672 to £3,532 a month , you pay 12% National Insurance…
For earnings over £3,532 a month you pay 2% National Insurance…
Does Morris pay National Insurance?
Work out his monthly net salary - £18,000 /12 = £1500
Yes he does. He earns more than £675 a month.
He pays 12% on monthly earnings over £672 so…
£ £672 = £828
= £99.36
Morris pays £ National Insurance a month

10. Does Megan pay National Insurance?
Work out her monthly net salary - £22,679 /12 = £
Yes she does. She earns more than £675 a month.
She pays 12% on monthly earnings over £672 so…
£ £672 = £
= £146.15
Megan pays £ National Insurance a month

11. Does Mike pay National Insurance?
Work out his monthly net salary - £50,526 /12 = £
Yes he does. He earns more than £675 a month.
He pays 12% on monthly earnings between £672 and £3532…
£ £672 = £2860
12% = £343.20
He pays 2% on monthly earnings over £3,532
£4, £3,532 = £678.50
2% = £13.57
Mike pays £ National Insurance a month

12. What do these people have in common?

13. Current minimum wage rates…

14. Zero Hour Contracts? Stats
Recent research by the ONS has found that:
Over 801,000 people are on Zero Hour Contracts, that’s 2.5% of the UK workforce.
Zero Hour workers are more likely to be:
Women or
Students in full time education aged below 25 or above 65
Employees on zero hour contacts worked an average of 25 hours a week
Over a third of people wanted to work more hours

15. Who uses zero hour contacts the most?
Retail industry
Education sector
Fast food and restaurant industry
Hotel industry
Health sector

16. Zero Hour Contracts? Pros Cons Workers
Flexibility – you can turn down a shift
You will have time to search for other work during free time
More jobs to apply for – lots of businesses use zero hour contracts
Improve your CV
May turn into a permanent position
Workers
You are not guaranteed work or a fixed income
You won’t be entitled to benefits such as a pension or redundancy
You will not know when you’ll work as you won’t have set hours
If you turn down a shift your employer may not use you again

17. Today we have learnt…
That there’s a difference between gross and net pay
Income tax and National Insurance contributions are deducted from our monthly pay
The more you earn, the more tax you pay