Advice in NS&I Figures.

zogg

Hope someone can advise if my figures are correct.

If I invest £250k in 3 year NSI Bond site calculator states I will receive £717.00 net per month. Approx £8604 per annum

I am a non tax payer and estimate that the net figure plus 20% equals £860.40 * 12 =£10324.80. I cannot work out what I may be able to reclaim per annum from the revenue. I think it may be the difference between £10324 and £8604 less 20%, making £1720.80 I will pay 20% tax on, (approx £344) though I am very unsure !

Sorry if my calcs are a bit wandered, I cannot get my head around this at all !!!!!!!!!!!!!!

Can anyone help ?

Thanks in advance.

Lokolo

There is a 10% band for tax on savings interest if this is your only income. But I don't understand it enough to tell you how to work it out. Someone else might though.

zogg

Lokolo wrote: »

There is a 10% band for tax on savings interest if this is your only income. But I don't understand it enough to tell you how to work it out. Someone else might though.

Didn't know that. Thanks.

Anybody else help with the figures ?

Thanks

gozomark

Assuming 20% tax rate, to go from net to gross you don't add on 20%, you add on 25% - ie 100/80

Stompa

The answer will depend on your total income from earnings, pension, savings etc.....

zogg

There is nothing else !

Stompa

Try tweaking the values in this example:

http://www.hmrc.gov.uk/tdsi/example22.htm

You'll need to adjust the 'Total income' and 'Personal allowance' values accordingly.

Personal allowances are shown here:

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

zogg

Stompa wrote: »

Try tweaking the values in this example:

http://www.hmrc.gov.uk/tdsi/example22.htm

You'll need to adjust the 'Total income' and 'Personal allowance' values accordingly.

Personal allowances are shown here:

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

Good example Stompa. Great help. Thanks.

Lokolo

Do it yourself, but then compare your result with mine to see if we get the same. (I am trying to avoid other work right now )

Total Gross Income: £10,755
Personal Alloance: £6,475 (if this is different tell me)

Total Taxable: £4,280

£2,320 at 10% = £232
£1,960 at 20% = £392

Total Tax Paybale: £624

However you will have paid £2,151 in tax, so you will get a tax refund of £1,527.

zogg

I get :

Total Income 10320
Allowance 6475
Taxable 3845
10% 2320=232
20% 1525=305
Payable=537
Paid in Tax=2064
Refund=1527

Refund figures the same.Odd !!

Lokolo

Your monthly income is £717 after tax.

To get before tax you *1.25, giving you £896.25

So if you did £896.25 * 0.8 (which is 20% off), you get back to £717.