Tax help please

pennyshahin_2

Hi I'm hoping that you can help me, I've looked at the tax office site but I'm not quite sure if I've got things right, I'm currently on a 38 hour week and on the minimum wage which over 12 months I work out to be about £11,896 gross pay per year I'm cutting my hours next week to 23 hours a week which would give me by my calculations about £7,176 gross per year.
The way that I read it £7,176 is below the tax free allowance which is now £7,475 what I'd like to know is how much by the time you take tax and national insurance of £11,896 how much will I be worse of now when I go part time thanks.

CLAPTON

on 7176 per annum you will pay no tax and no NI

chrismac1

If it is at 5.93 (I realise it is going up soon) then your weekly gross is 225.34, PAYE 16.30 and NI 10.36, giving 198.68 net per week. If we say 50 weeks per year, then your net for the year is slightly over 9,934.00 as you'll get 52 weeks' ration of the personal allowance - adjust pro-rata if you expect to work a different number of weeks than 50.

So you'll be slightly more than 2,758 worse off.

lazer

pennyshahin wrote: »

Hi I'm hoping that you can help me, I've looked at the tax office site but I'm not quite sure if I've got things right, I'm currently on a 38 hour week and on the minimum wage which over 12 months I work out to be about £11,896 gross pay per year I'm cutting my hours next week to 23 hours a week which would give me by my calculations about £7,176 gross per year.
The way that I read it £7,176 is below the tax free allowance which is now £7,475 what I'd like to know is how much by the time you take tax and national insurance of £11,896 how much will I be worse of now when I go part time thanks.

You may be entitled to tax credits as you are working over 30 hours a week. - have a look on entitledto.com

If you dropped your hours to 23 you would lose your entitlement to tax credits (unless you have children or are disbaled)