How much will i take home to assist with Mortgage deposit?

Longy1985

I am in the process of purchasing my first home and need to know how much my take home pay will be in January.

My Salary is £42000 before tax.

I also get a £8000 car allowance before tax.

I have a bonus due to me in January of £13500 (Gross)

Any help would be appreciated.

agrinnall

Tax code? Earnings to date? Tax paid to date? Don't make this a "getting blood from a stone thread" if you can help it.

Longy1985

Apologies, total pay upto 24/11/15 £32000, tax £5732.80 NI Employee £2820 NI Employer £3669.68 and my tax code is 1060L
Many Thanks.

agrinnall

Because I'm not sure how the car allowance is treated please don't take this as gospel, people with far greater expertise than mine will hopefully either confirm or correct my thinking.

However, I believe that your earnings are already at a level where your marginal combined rate of tax and NI is 42% (tax 40%, NI 2%), so the bonus will have 42% deducted, leaving you 58% of £13,500 or £7,830. So your take home pay in January will be your usual amount plus the £7,830.

Longy1985

Thanks very much really appreciate your help.

[Deleted User]

Agrinnall's reply is as good an estimate as is possible. Additional concern - child benefit clawback as a result of bonus - if relevant of course!

Prothet_of_Doom

[Deleted User] wrote:

Agrinnall's reply is as good an estimate as is possible. Additional concern - child benefit clawback as a result of bonus - if relevant of course!

A tip if on or just above the limit, is to put a little extra into your pension, thus reducing your income to a level where you still get CB

agrinnall

[Deleted User] wrote:

Agrinnall's reply is as good an estimate as is possible. Additional concern - child benefit clawback as a result of bonus - if relevant of course!

Good point, I hadn't wanted to complicate things and I'd thought the threshold was £60K, but I see it is actually £50K so it would come into play if it applies.