Take home pay

davholla

Am I right in thinking that taxable pay is based on your salary minus however much you pay into your pension?
I.e. if you earn £20K p.a and pay £2k into your pension then you are only taxed on £18k.

Also if you earn £51k p.a. and pay £3k into your pension then you are only taxed on £48k and you still get child benefit?

00ec25

correct

as things stand at the moment reducing your taxable pay via pension contributions will drop you below the child benefit threshold

pedantically your use of the phrase take home pay is incorrect:
Gross pay : total amount you earn before any deductions

Taxable pay: gross pay less non taxable deductions (typically pension contribution) figure before you have paid tax and is the figure used for the benefit calculation

Take home pay (aka net pay) is the net figure after you have paid tax.

CLAPTON

indeed so but also note that you pay NI based on your gross pay

davholla

CLAPTON wrote: »

indeed so but also note that you pay NI based on your gross pay

Is a good website to calculate take home pay? I haven't found one that enables me to put the percentage pension contribution.

davholla

00ec25 wrote: »

correct

as things stand at the moment reducing your taxable pay via pension contributions will drop you below the child benefit threshold

pedantically your use of the phrase take home pay is incorrect:
Gross pay : total amount you earn before any deductions

Taxable pay: gross pay less non taxable deductions (typically pension contribution) figure before you have paid tax and is the figure used for the benefit calculation

Take home pay (aka net pay) is the net figure after you have paid tax.

Thanks and I shouldn't have posted in haste. I am trying to work out if a new job is worth it.

xylophone

Is a good website to calculate take home pay? I haven't found one that enables me to put the percentage pension contribution.
http://www.thesalarycalculator.co.uk/about.php
http://www.thesalarycalculator.co.uk/salary.php
might be worth a look.

jem16

davholla wrote: »

Is a good website to calculate take home pay? I haven't found one that enables me to put the percentage pension contribution.

This website will allow this. However it dose depend on how those contributions are made as it doesn't work too well with contributions made from gross salary.

http://listentotaxman.com/

agrinnall

I'm with xylophone on thesalarycalculator, it does exactly what you want and is the one I always use when I'm working out what my net pay will be with a new contract.