working out net from gross pay

Jolaaled

Please can someone cleverer than me help with quick query??

I am trying to work out my net income per month.
I know i need to therefore deduct income tax, NI and pension contribution.

Should I take off my pension contribution amount from the gross amount first, and then work out the income tax on the remaining amount???

Does this also apply to the NI???

it's jsut that i thought that i won't be taxed on either Pension and NI, but not sure if this is correct, or if i've approached this calculation the right way.

thanks very much, all.

lynzpower

i use the salary calculator on https://www.i-resign.com

It really does seem quite accurate ( for me anyway)

however it wont calculate the pension as clearly these vary...

Jolaaled

thanks, Lynz.

I'm trying to work it out 'long hand', rather than use an online calculator!...i've tried a few of these including the one you've linked to, but just wanting to double check!!

dzug1

NI is charged on the gross amount
Income tax is charged after deducting pension
Pension would be on the gross amount if it's a % of salary

Jolaaled

dzug1 wrote: »

NI is charged on the gross amount
Income tax is charged after deducting pension
Pension would be on the gross amount if it's a % of salary

Thanks...is this correct:

To calculate income tax: I first deduct pension (6.8%) from the gross, and then deduct the basic tax allowance (6035). The remainder is all that is then taxed. (??).

To calculate NI: 11% of any earnings over £400 per month??


thanks so much for your help.

CLAPTON

yes you deduct pension then 6035 then the rest is taxed at 20% (assuming standard rate of tax

and NI is based on gross less 453 then at 11%

chrisbur

If your pension scheme is contracted out of the state second pension you may be paying less than 11%. The reductions for salary related and money purchase schemes can be found here http://www.hmrc.gov.uk/rates/nic.htm