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Calculating Take Home Pay
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Cardinal-Red
Posts: 664 Forumite
My wife and I expecting our 1st in October :jand amongst the nappies, cots and socks we're giving some thought to our cash flow in the period when she is off on maternity leave.
We've sat down with the rules governing her maternity pay and worked out exactly how much she'll be paid gross every month. Understandably, this is very up and down (ranging from almost £3000 in the 1st month right down to a lowest of £499 in February 2011.
Now I'm aware that PAYE is taken on a rolling basis (not sure about NI) so the next step is for us to try to work out how much of this gross pay is going to translate into net pay for us.
The confusions we have are:
- From April - September she'll be on full pay, paying basic rate tax, pension contributions etc;
- From September onwards her salary will start to drop. We are also thinking on deferring her pension for the period - this means that some of the tax she has paid in April - September will effectively be paid back won't it?
- Once we get down to January time, we'll be on basic SMP - is this taxed? We calculate some of the months she'll be below the average monthly tax free allowance anyway but just want to make sure
Is there any way we can calculate the monthly net pay based not only on that month but on previous months too? All the online calculators I can find have monthly breakdowns but assume a straight line payment of salary.
We've sat down with the rules governing her maternity pay and worked out exactly how much she'll be paid gross every month. Understandably, this is very up and down (ranging from almost £3000 in the 1st month right down to a lowest of £499 in February 2011.
Now I'm aware that PAYE is taken on a rolling basis (not sure about NI) so the next step is for us to try to work out how much of this gross pay is going to translate into net pay for us.
The confusions we have are:
- From April - September she'll be on full pay, paying basic rate tax, pension contributions etc;
- From September onwards her salary will start to drop. We are also thinking on deferring her pension for the period - this means that some of the tax she has paid in April - September will effectively be paid back won't it?
- Once we get down to January time, we'll be on basic SMP - is this taxed? We calculate some of the months she'll be below the average monthly tax free allowance anyway but just want to make sure
Is there any way we can calculate the monthly net pay based not only on that month but on previous months too? All the online calculators I can find have monthly breakdowns but assume a straight line payment of salary.
The above facts belong to everybody; the opinions belong to me; the distinction is yours to draw...
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Comments
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Not sure about the rest but you dont get taxed on SMP. Sorry cant help with the rest...0
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Not sure about the rest but you dont get taxed on SMP. Sorry cant help with the rest...
Well it's a start, thanks :beer:
But are you sure...?
http://www.hmrc.gov.uk/MANUALS/senew/se76360.htmThe above facts belong to everybody; the opinions belong to me; the distinction is yours to draw...0 -
Pm me and I can try and help.£705,000 raised by client groups in the past 18 mths :beer:0
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Try thesalarycalculator.co.uk/salary.php
Put in www. Sorry, it won't let me post a link!0 -
SMP is subject to tax and NI, I was surprised when I claimed it to see the deductions but it is correct - it was a nominal amount though.0
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