Deductions Help Please

Treadmill

i've no idea what my net will be, I've not started the job yet

LucyTheDwarf

Your pension of 11.56% is deducted from your salary, or is it paid by your employer?

LucyTheDwarf

Also, is £37357 your salary for 52 weeks or 48 weeks or 12 calendar months?

Treadmill

I get paid 13 times a year, 11.56% is deducted from my salary.

I spoke with our HR department to day who inform me that the loan repayments not subject to Tax and NICs, and are taken from gross because its for sustainable travel. The only tax implications are for loans over £5000, which are considered a benefit

I work for Network Rail and we have a fairly competent HR and payroll department so I'll be working on the basis that this is the case, apparently there are several thousand employees with these loans

Pumpkinface_2

Treadmill wrote: »

I get paid 13 times a year, 11.56% is deducted from my salary.

I spoke with our HR department to day who inform me that the loan repayments not subject to Tax and NICs, and are taken from gross because its for sustainable travel. The only tax implications are for loans over £5000, which are considered a benefit

I work for Network Rail and we have a fairly competent HR and payroll department so I'll be working on the basis that this is the case, apparently there are several thousand employees with these loans

Hmm well I am not convinced. I still think either you or your HR department are mistaken, but if not, I am most interested to know why nobody else in the country is allowed to include train tickets as a tax allowable expense.

Rolo_Tomasi

I think there is a concession for rail workers which was held over from the British rail days. One of those occasions where it is one rule for them and another for the rest of us (MPs anyone?)

However back to the original question. This appears to be similar to a salary sacrifice scheme therefore if no season ticket is taken the gross salary will be £37357pa. If the slower train option is taken the gross will reduce to £34067 however net pay will only reduce by £1940pa (assuming tax of 20%, contracted out nic of 9.4% and pension of 11.56%).

With the faster train, net pay will be £2469 less than if no season ticket was taken or £529 less than the slower train option.

Debt_Free_Chick

Rolo_Tomasi wrote: »

However back to the original question. This appears to be similar to a salary sacrifice scheme therefore if no season ticket is taken the gross salary will be £37357pa. If the slower train option is taken the gross will reduce to £34067 however net pay will only reduce by £1940pa (assuming tax of 20%, contracted out nic of 9.4% and pension of 11.56%).

With the faster train, net pay will be £2469 less than if no season ticket was taken or £529 less than the slower train option.

You can not operate SS for a season ticket loan - that would effectively give tax relief.

A season ticket loan is just that - a loan, albeit with no interest to pay. So the total loan is simply repaid over 12 months.

Forget the deduction from salary as that's just a convenience - it's just a loan to be repaid.

in the OP's case her net disposable income will be £74.33 per month less with the express train loan.