Calculating Net to Gross for wages.

aardvarkuk wrote: »

Your assuming a lot are you not

I have got a proper wage slip.

I would like to do deductions myself.

I also know how a wage slip is already calculated.

And I just wanted some help to do it myself. :rolleyes:

But thats not what you asked is it?

What exactly is LV assuming

If all the info is on your payslip then why do you need to work backwards

I'm not aware of any program that would enable you to work backwards whilst also taking into consideration your tax code.

There are many to work out the correct deductions.

aardvarkuk wrote: »

:rotfl: :rotfl: why post if you cant help

I WANT TO DO THE CALCULATIONS MYSELF IS THAT SUCH A BAD THING.

:rolleyes:

Some people, jeez. :rotfl: :rotfl:

NO ~ IT'S NOT.

BUT, you dont need to claculate net to gross!! Gross to net will work perfectly fine!

It could be worked backwards in a spreadsheet or if someone wrote a program/web application to do it - but I don't actually know of one either apart from an actual payroll program (like Sage Payroll) which often have a net payments function.

However, if you are only calculating in the basic rate band this could help:-

1.) Work out the difference between your actual net pay from a payslip and the net pay figure you want to calculate from.

2.) Divide the answer by 0.67.

3.) Add or subtract that as appropriate to/from the gross pay on the payslip you used in Step 1.

N.B. This will only work if all your figures stay in the basic rate band and 11% NIC band. If you know all the figures are over the higher rate threshold, you can use 0.59 in Step 2 instead.

If I've confused you then an easier solution might be to use a net pay calculator like www.listentotaxman.com to trial and error gross pay figures until you get an approximate answer.

I know this is an old thread, but I thought I'd add another reason why you MIGHT want to calculate gross to net.

I am currently calculating my household outgoings now versus what they will be once we complete a planned reduction in household costs. To put this into perspective, I want to work out how much better off i'd be, and liken it to the equivalent pay increase I would require to get the same benefit. Obviously the amount I save will be a net amount, after deductions, etc, so in order to see the true value of the savings as an equivalent 'pay rise', I need to gross it up.

As an example, with nice simple (and not at all realistic figures):

If I were earning £20/hour and my potential saving in the cost saving exercise was £100 per week, I wouldn't just have to work 5 hours to earn that £100, as that would be how much I would get AFTER tax. Using the link that was posted above (and manipulating the salary amount to work it backwards), I've worked out that £100 grossed up would actually be £146, which is actually more than 7 and a half hours extra to earn that £100 net.

So, the benefit of working out a net to gross figure is that I can see I would have to work 50% more time (7.5, not 5 hours) to earn the same amount of net pay after tax.