Tax and hours worked

WaxiesDargle

Hi

I put this on the wrong thread yesterday so i'll try here

I have an annual pension of £21,319 gross from previous final salary employment which I don't pay NI on and take home net £1500 a month

I have been offered a job that is 37.5 hours/ 5 days a week that has an annual salary of £20,225...which I will pay NI

So that's a combined gross pay of £41,544

I'm under 65

Could anyone please work out for me my take home pay after tax...I know it will go above the 40% tax threshold

I am trying to work out if it is worth doing those 37.5 hours if it is going to push me over the 40% bracket... also trying to work out the number of hours to work in order to keep me in the lower tax band

Hope that is just about understandable

Thanks

fengirl_2

You wont go above the 40% tax band, so tax will be deducted at 20% from your pay and NIC at 11% above £104pw.

WaxiesDargle

Thanks fengirl but if you look at this link it says that 40% is paid over £37,400 for the next financial year

http://www.hmrc.gov.uk/rates/it.htm

dzug1

If you look at that link properly you will also see that there is a £6475 personal allowance next year. Add that to the £37400 and you come to a figure of £43875 which is the amount you can earn before paying higher rate tax.

noh

WaxiesDargle wrote: »

Thanks fengirl but if you look at this link it says that 40% is paid over £37,400 for the next financial year

http://www.hmrc.gov.uk/rates/it.htm

In the 2009-2010 tax year you will start paying 40% tax when your income exceeds your tax free alowance + £37400.
So if your personal allowance will be £6475 you will not start paying 40% tax until your total income is greater than £43875.

Nigel

p00hsticks

Don't forget that if you have any savings (other than in a cash ISA) or own any stocks and shares, then the savings interest and share dividends also need to be added in when calcualting your total income for tax purposes - if it takes you over the 40% band then you'll need to get in touch with HMRC.

WaxiesDargle

Thanks all...note to self...look at link properly

fengirl_2

Waxies - note to self, don't diss fengirl's adding up.

WaxiesDargle

fengirl wrote: »

Waxies - note to self, don't diss fengirl's adding up.

fengirl it wasn't meant to be a diss (whatever that means)...but anyhow you have my unreserved apology

now can you add up my take home pay on £21,319 (pension with no NI) and £20,225 salary with NI....;)

ceeforcat

On the assumption that you are not in pensionable employment your monthly net pay from your employment will be:

Gross £1685.41
Tax £337.00
NIC £ 135.56

Net Pay 1212.85

That's for the current tax year!

WaxiesDargle

Thanks for doing that ceeforcat

do they then just add my pension pay of £21,319 (take home about £1500 per month) on to the job salary ...so its 1500 +1212. = £2712 total take home pay?

or is it all taxed together?

If its all taxed together it's the NI contributions to just the job salary (which I know you have included) and no NI to my pension pay that I can't seem to work out... if its all lumped together

anyhow thanks again for taking the time to work that out