Income Tax and NI

NewbieMoneySaver**

Hello all.

I have a question and hope someone can help.

I'm owed £3234 from my employer and have had confimation that I will recieve this sometime in Feb. Can anybody tell me how to work out what amount I should get after Tax and NI. I am a standard rate taxpayer.

Cheers

CLAPTON

Is this in addition to your normal monthly salary for Feb? If so how much is your normal monthly salary

The tax depends upon how much you have earned prior to Feb and your tax code.

NewbieMoneySaver**

My Tax code is 620L and this is in addition to my current earnings. My normal monthly income before tax is £2801.67.

Hope this is ok. Cheers

CLAPTON

by the end of January you will have earned 2801.67 x 10 = 28,016
and have paid 4,569 in tax based on a 620L tax code

so if in Feb you get 2801 plus 3234 = 6035
you tax will be about 1103 (6035 - 6200/12) *20% as you are not in higher rate tax

your NI will be about 614 (assuming you pay 11% NI and no pension deductions) i.e. income 6035 less 453 at 11%

ceeforcat

Clapton - would he not just pay NI at 11% on (3337-453) = 2884 (max for any month) with the remainder at 1% - unless of course he is a director where it would be 'spread' over the whole year?

CLAPTON

ceeforcat wrote: »

Clapton - would he not just pay NI at 11% on (3337-453) = 2884 (max for any month) with the remainder at 1% - unless of course he is a director where it would be 'spread' over the whole year?

thanks

yes you are absolutely correct .. for employees the 11% is between 3337 and 453 and then 1% as you say.

NewbieMoneySaver**

Thanks for your replies.

I have no pension contributions as i'm in the forces. So after NI and tax what do you think I will get. That seams alot lower than I was expecting.

Cheers

ceeforcat

Based on the above your pay for Feb will be £6035 gross. You will lose £344 in NIC and £1103 in tax - your net pay would be £4588 or thereabouts.

NewbieMoneySaver**

Thanks for the great news.

Cheers