Can anyone help with a basic calculation please?

Burlesque_Babe

apologies as this is a really simple question, but I've tried a few calculations, but not sure if i'm doing the right sums.....

I'm considering reducing my hours and want to calculate what my new monthly take home salary will be.

If I reduce to 30 hours per week, my new pre-tax annual salary will be £20,250 (worked out on 30/37 hours per week, or 81% of my current full time salary)

or,

if I reduce to 31.5 hours per week, my new pre-tax annual salary will be £21,350 (31.5/37 hours per week, 85% of my current full time salary)

I am single and pay normal tax/NI contributions, could anyone help with what my take home pay would be each month on those two annual salary options? I'm reaching a figure of around £1200 per month , am I anywhere near?

many thanks in advance

ceebeeby

Don't shoot me, but I think it's basic allowance off first (£4895), then the first £2090 at 10%, then the rest at 22% ..... which makes the top figure £17122.70 (£1426.89 per month) and the second one £17980.70 (£1498.39 per month) ..... BUUUUUT, this is only the income tax - I'm stuffed on NI and https://www.inlandrevenue.co.uk was next to useless in explaining it as well!

CIS

your figures in teh right area, I get this;

You have a tax allowance of £4895.

£20250 - £4895 = £15355 taxable

First £2090 taxable at 10% = 2090 X 10% = £209 tax
Then £13265 taxable at 22% = 13265 X 22% = £2918 tax
= £3127 tax annually

assuming your in a contracted out occupational scheme

NI free = £4888
NI payable on £15362 @ 11% = £1690 NI annually

Total tax and NI = £4817 / 12 = £401

Post tax monthly salary = £1687 - £401 = £1286 monthly tax home pay

ManAtHome

Also depends (as well as the NI) on whether you have any 'perks' from work (company car, Bupa, phone allowance etc), or if you pay into a pension or share-save scheme. Safest way would be ask your payroll dept - should take 'em a couple of mins on the pooter.

Burlesque_Babe

thankyou - such fast replies!! So, would that be £1286 take home for my 30 hour week at £20,250? If it is, I might go for it!! (I'm with the NHS if that makes any difference with the NI etc, though I doubt it does)

No, no perks, no car/phone/BUPA, pension etc etc, all I pay is tax and NI on my monthly salary.

saver_sam

There is also a web site that might give you an idea of the take home pay and tax stuff. Try Digita tax central

you will need your tax code but if it's a normal one then I think it is 489L - if not there is also a link on the right hand side of the above site that works that out for you too.

CIS

Ive jsut spotted a possible mistake in my calculation , I used the contracted in rate NI @ 11%, you'll pay less NI as your contracted out.
Your take home pay should be about £20 a month higher than I calculated.

Robert_Sterling_3

If you are contracted out that should mean you are paying into a pension fund so deduct something from your take home pay and from your tax paid.

Burlesque_Babe

wow, many thanks for all the replies, very grateful, that's a really good guide for me.
Keren