Calculating my take-home pay from my annual salary.

skintscotsman
skintscotsman Posts: 671 Forumite
First Post
in I wanna buy it or do it
I have recently started a new job.

Due to being SKINT, I need to do some budgeting calculations.

Now, my salary is £16 753.

I need to work out what my take-home pay is after tax and NI contributions.

Also, I contribute 6% of my basic salary to a Local Government Superannuation Pension Scheme.

Is there a formula I can use to work this out?

Thanks
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain.
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Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
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    Payslip Calculator

    Rates and Allowances - Income Tax

    Rates and Allowances - National Insurance Contributions

    Briefly - Income tax:
    You do not pay income tax on first £4,895
    Then 10% on the first £2,090 over £4,895
    Then 22% on everithing else
    Pension contributions are not taxable (am not sure about NI).
  • Savvy_Sue
    Savvy_Sue Posts: 46,014 Forumite
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    I'm sure grumbler's links will be more accurate, but if you want a quick and easy calculation I've always found that taking 25% off the gross salary gets roughly the right answer for tax and NI. I'm sure it wouldn't be right if you don't pay any tax at 22% or if you do pay any above 22%, but it works in the middle!

    It does depend on your tax code, of course. Look at your P45 and make sure you think it's right, if not then query it with your local tax office.
    Signature removed for peace of mind
  • Sheel
    Sheel Posts: 45,671 Forumite
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    For National Insurance you don't pay anything on the first £404 in a month and then it's 9.4% on any more of your salary , less 83p rebate

    This is what my husband tells me as he has worked in salaries and wages for many years
    Same old same old since 2008

  • fitterastra
    fitterastra Posts: 55 Forumite
    Hi

    £16.750 After tax and n.i works out to about £260 a week.

    So muliply this by 52 and take off 6%.

    Hope this helps
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    I put your details into a spreadsheet I use to check my payslip. However, I am in a group stakeholder pension scheme, so I think NI figures shown for your details may be innaccurate due to your contracted out pension.

    I believe this will mean you will "take home" slightly more than the bottom-line figures shown.

    Gross Pay.......................................... £16,753
    Pension contribution............................ £ 1,005.18
    Pay for tax purposes............................ £ 15,747.82
    Personal allowance...............................£ 4,895
    Taxable pay........................................£ 10,852.82
    Tax (10% on 1st £2,090 of taxable pay)...£ 209.00
    Tax (22% on rest of taxable pay)............£ 1,927.82
    Total tax............................................£ 2,136.82
    National Insurance...............................£ 1,322.31*
    *(Gross pay-(91x52))x11%

    Total Deductions.................................£ 3,459.13 (Pension + Tax + NI)
    Net pay.............................................£ 12,288.69 (£1,024.06/month**)

    ** This figure is based on salary paid monthly, although I am aware that some Local Government jobs are paid 4 weekly. If yours is 4 weekly, divide the annual figure by 13 (strictly speaking should be divided by 365 [or 366 in a leap year] and multiplied by 28).

    Figures are illustrative only - don't make any decisions based on them!
  • EMcG
    EMcG Posts: 160 Forumite
    First Anniversary Combo Breaker
    try this

    http://www.i-resign.com/uk/financialcentre/tax_calculator.asp
  • Poppy9
    Poppy9 Posts: 18,833 Forumite
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    If you were previously unemployed you should get a tax rebate for April and part of May as the tax is worked out on your annual salary but you won't earn the full whack before next March.

    Also if you are LG staff you might want to think about joining a union. Most staff are members of Unison - subs are based on your salary.
    :) ~Laugh and the world laughs with you, weep and you weep alone.~:)
  • Sheel
    Sheel Posts: 45,671 Forumite
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    fitterastra wrote:
    Hi

    £16.750 After tax and n.i works out to about £260 a week.

    So muliply this by 52 and take off 6%.

    My husband says this is probably incorrect as 6% pension comes off before tax is calculated , but also you may have worked out NI at 11% , but it would be 9.4% for contracted out NI
    Same old same old since 2008

  • Rave
    Rave Posts: 513 Forumite
    I'm on almost exactly that wage (to within £100 p/a) and I take home £1055 a month- that's after paying £11 union subs and my Civil Service pension contributions which I believe is about £40 a month. Anyway you should be getting somewhere between £1000 and £1100 a month, slightly more this year if you've not worked between the start of this financial year and now.
  • Poppy9
    Poppy9 Posts: 18,833 Forumite
    First Post First Anniversary Combo Breaker
    Savvy_Sue wrote:
    I'm sure grumbler's links will be more accurate, but if you want a quick and easy calculation I've always found that taking 25% off the gross salary gets roughly the right answer for tax and NI. I'm sure it wouldn't be right if you don't pay any tax at 22% or if you do pay any above 22%, but it works in the middle!

    It does depend on your tax code, of course. Look at your P45 and make sure you think it's right, if not then query it with your local tax office.

    For all the intricate calculations Savvy Sue's ready reckoner was the quickest, easiest and pretty darn accurate method. :D

    I always use this method when OH wants to know how much o/t he will actually bring home. I always tell him it'll be 75% but he still asks all the blooming time. Men :confused:
    :) ~Laugh and the world laughs with you, weep and you weep alone.~:)
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