Car allowance; £500/mth gross - net?

jitters

What would my take home be on a £500 per month car allowance?

Do I need to factor in just tax and NI or do my pension and student loan factor in?

Cheers

BillTrac

You have to look at the car allowance as additional income, exactly the same as if you earned an additional £500. Tax and NI have to be deducted, but as I am waaaay too old to know about student loans, I guess/assume that if the repayments are based on your income then this would increase as well.

Catangar

I posted a really useful note on this yesterday direct from CSA. Car Allowances need to use gross figure to calculate CSA. I have 433.33 per month and this normally works out about 300 take home.

fairihell

My husband has just started a new job with a £6000 car allowance - will he pay student loan payments on this each month?

EllieA_3

fairihell wrote: »

My husband has just started a new job with a £6000 car allowance - will he pay student loan payments on this each month?

Yeah it's just treated as additional income.

Example : if your husband normally earn's £30,000 he'd pay £112 in student loan and have a take home of £1,772.80.

If he get's £6000 car allowance, its simply treated at £36,000 earnings and he'd pay £157.50 student loan and have a take home of £2,072.80.

This is a good calculator http://www.thesalarycalculator.co.uk/salary.php

If you put in his basic salary + 6000 for the car allowance it will tell you how much he'd bring home.

EllieA_3

jitters wrote: »

What would my take home be on a £500 per month car allowance?

Do I need to factor in just tax and NI or do my pension and student loan factor in?

Cheers

It would entirely depend on your salary, bang the salary and "yearly" car allowance into here

http://www.thesalarycalculator.co.uk/salary.php

It will tell you how much you'll take home.