Tax/take home calculation

fengirl_2

Oh my goodness, surely the OP didnt need spoon-feeding. I gave the info hoping he could work the rest out and educate himslef at the same time.

WaxiesDargle

fengirl

I have observed you on here for some time and you are a nasty piece of work...soooo very arrogant...you must be fun at parties...please stop taking yourself so seriously

do me a favour...do not reply to any of my questions again...I'll leave that to those that care

oh and read Martins splurge about this site with ref. to questions....and lighten up!

Thanks again for those that have 'spoonfed' me...it is very much appreciated

CLAPTON

WaxiesDargle wrote: »

fengirl

I have observed you on here for some time and you are a nasty piece of work...soooo very arrogant...you must be fun at parties...please stop taking yourself so seriously

do me a favour...do not reply to any of my questions again...I'll leave that to those that care

oh and read Martins splurge about this site with ref. to questions....and lighten up!

Thanks again for those that have 'spoonfed' me...it is very much appreciated

unpleasant and ungrateful little toad.

WaxiesDargle

Clapton

I asked a question which was what would the difference be with my pay and the increase...that was the question

I am very grateful to anyone who answers or partly answers...if you look I even thanked fengirl

what i wasn't asking for was the further arrogant reply she gave after that...about me being spoonfed...maths and tax isn't mt strong point hence the question in the first place

toad...lol...keyboard warrior

aah

isn't fengirl wrong though.... so evidence of how she calculated it could be useful.

You are right you are going into the 40% tax bracket on most of this money, and your earned income is low enough to keep you paying NI at 11%, so 51% of your increase will be taken off in deductions. Shame. But remember, you don't pay NI on that pension.

Nice pension btw. I am in a similar boat and age, but have £43k earnings and only £8.5k pension. were you made redundant?

trevormax

Fengirl is correct.

PA £6,475 + BR amount £37,400 = £43,875 less pension £21,319 less wage (before pay increase) £22,152 = £404 of remaining BR amount.

So £404 of the extra income from the wage increase will be taxed at 31% (tax 20% + NI 11%) with the remaining amount being taxed at 51% (tax 40% and NI 11%).

Fengirl said £22,556 will be at 20%. OP's wage before increase £22,152 + £404 = £22,556.

As you will only have the wage increase for 6 months of this tax year, you will only get an extra £1861 gross.

Extra Tax
£404 @ 20% = £80.8
£1,457 @ 40% = 582.8

Extra NI
£1861 @ 11% = 204.71

Total extra deductions = £868.31
Net gain by end of the tax year = £992.69
Average this out over the remaining 6 months gives an average monthly increase of £165.45. It will not work out like this exactly though due to how PAYE works on a cumulative basis and spreads out the personal allowance and basic rate amounts.

We can not say for next tax year as we do not have the personal allowance or higher rate threshold amounts.

You should note that Fengirl and Clapton are two of the most knowledgable posters on the tax forum and if you wanttax advice in the future (good tax advice from people who know what they are talking about) it doesn't help to be an a*se to them.

WaxiesDargle

trevormax wrote: »

Fengirl is correct.

PA £6,475 + BR amount £37,400 = £43,875 less pension £21,319 less wage (before pay increase) £22,152 = £404 of remaining BR amount.

So £404 of the extra income from the wage increase will be taxed at 31% (tax 20% + NI 11%) with the remaining amount being taxed at 51% (tax 40% and NI 11%).

Fengirl said £22,556 will be at 20%. OP's wage before increase £22,152 + £404 = £22,556.

As you will only have the wage increase for 6 months of this tax year, you will only get an extra £1861 gross.

Extra Tax
£404 @ 20% = £80.8
£1,457 @ 40% = 582.8

Extra NI
£1861 @ 11% = 204.71

Total extra deductions = £868.31
Net gain by end of the tax year = £992.69
Average this out over the remaining 6 months gives an average monthly increase of £165.45. It will not work out like this exactly though due to how PAYE works on a cumulative basis and spreads out the personal allowance and basic rate amounts.

We can not say for next tax year as we do not have the personal allowance or higher rate threshold amounts.

You should note that Fengirl and Clapton are two of the most knowledgable posters on the tax forum and if you wanttax advice in the future (good tax advice from people who know what they are talking about) it doesn't help to be an a*se to them.

Thanks trevormax...your time is appreciated

ok they may be very knowledgeable...but that does not give them the right to be abrupt and arrogant...why did she have to make the 'spoonfed' comment?....

knowledgeable people can be !!!!!! as well

WaxiesDargle

aah wrote: »

isn't fengirl wrong though.... so evidence of how she calculated it could be useful.

You are right you are going into the 40% tax bracket on most of this money, and your earned income is low enough to keep you paying NI at 11%, so 51% of your increase will be taken off in deductions. Shame. But remember, you don't pay NI on that pension.

Nice pension btw. I am in a similar boat and age, but have £43k earnings and only £8.5k pension. were you made redundant?

Thanks aah

no....I was in the army for 8 years and a firefighter for 26 years...I transferred 4 years of my army pension into the firefighters pension scheme...and for the next 26 years I paid 11% of my salary into the firefighters pension scheme...enabling me to retire at 50 on a 30 year final salary pension

SonniC

You stated that you are on tax code BR

This means you will pay tax at 20% regardless of what you earn....there is no 40% bracket calculation on BR codes and no allowances are awarded.

You will need to have your code updated before you calculate what your net pay will be. Rather than having your employed income on BR you should be on 0T, this will recalculate for the 40% banding.

Contact your tax office and advise them of the change, if left you will end up owing tax at year end. :mad:

chrisbur

SonniC wrote: »

You stated that you are on tax code BR

This means you will pay tax at 20% regardless of what you earn....there is no 40% bracket calculation on BR codes and no allowances are awarded.

You will need to have your code updated before you calculate what your net pay will be. Rather than having your employed income on BR you should be on 0T, this will recalculate for the 40% banding.

Contact your tax office and advise them of the change, if left you will end up owing tax at year end. :mad:

If the BR code is changed to OT the 40% tax deduction will not kick in at the right time. No account will be taken of how much has been paid in the coded payment, so 40% will not be taken until this payment has gone over the full year's allowance for 20%. As far as i know there is no way to get the tax correct, as it is being done, when the combined payments cross the 40% band, because neither payment can take account of the other payment. I think you will either have to accept that you will owe a bit, or ask for the BR code to be changed to one that takes all at 40% and then claim some back. I personally would go for owing some tax.