Help working out a days drop in wage

llol_slim

Hello all .. apologies if this has been covered already, i couoldn't think how to search for it..

I currently work 5 days a week, but have spoken to my manager saying I woud like to do 4 days a week, and she has said there may be an opportunity, but only available for a short period of time.

How on earth do i work out what my wage would be with the tax deductions?
I need to know whether I could afford it before commiting to it.

My hourly wage wouldn't change, but I can't work out how much tax would be deducted, I know nothing about tax.

Thanks in advance
Laurie

chrisbur

Hi

Without knowing all the details of your salary and proposed salary no one can answer this question. The best thing to do is work out your old and new gross wages and put them into a payslip checker, there are a couple in the Sticky: Useful Websites near the top of this page. This will give you tax and NI figures that assume the same level of earnings for a full tax year.

Just to warn you that the actual tax figure that would apply to you if you took the cut in hours may not be what the checker shows because of the way tax is calculated. If for examle your old salary was into the 40% band and your new salery was below it, then each pay period, possibly for the rest of this tax year, you would get some of your old 40% tax recalculated at 22% and so get a tax reduction each time. This would give you a higher net pay for your new salery, which might not settle to the correct figure untill next tax year.

llol_slim

that makes sense, thanks.
I did try one of the calculators already, problem being I don't even know how to figure out my new gross salary, as depending on how I do it, i come up with different figures.
I don't know what my proposed salary would be, I suppose the obvious thing to do is to ask my company!!

Thanks

kitchen_buff

Divide your current salary by 52. (weeks) then divide by 5 (days) then multiply the individual days by 4 (new days) then multiply by 52 (weeks). this will give your gross salary.
A quick way of working out tax and insuarnce. Once you have the new annual salary, deduct your personal tax allowance in £ss. See example below.

Current salary 5day week £10,000. divided by 52wks= £192.31 pw divided by 5 = £38.46 per day.
£38.46 multiply by 4(days) = £153.84 pw multiyply by 52(wks) = new salary of £7999.68.

Personal tax allowance of say £3200. minus £7999.68 = £4799.68 taxable figure
multiply this by approx 33% (tax and insurance average) So deductions would be £1583.89 pa. Deduct this from the £4799.68 this leaves £3215.79. Add this to your tax allowance of £3200. so £3200 + £3215.79 = £6415.79 divide by 52 wks=
£123.38 per week or £534.65 per month.

llol_slim

:eek::eek::eek:
now thats some maths right there!! I wil ltry to apply it to my figures.
I'm on roughly £18000 a year before tax. Equates to £1200 after tax per month (roughly)

But I don't know where I find my personal tax allowance?

CLAPTON

your personal allowance is 5225 per annum (i.e. no tax on this )
then 2230 at 10% then the rest at 22%

NI at 11% above 100 per week

the above assumes you dont pay pension contributions

however i would suggest you use a calculator to test out your current annual salary... if thats ok simply assume you new salary will be 4/5 of your old to give you some idea... but obviously you need to ask your employer

CLAPTON

also ... a salary of 18,000 gross should work out about 14,000 after tax unless you have deductions (pension, student loan or benefits in kind)

Andy_L

kitchen_buff wrote: »

Divide your current salary by 52. (weeks) then divide by 5 (days) then multiply the individual days by 4 (new days) then multiply by 52 (weeks). this will give your gross salary.
A quick way of working out tax and insuarnce. Once you have the new annual salary, deduct your personal tax allowance in £ss. See example below.

Putting on my maths geek head, the divide & multiply by 52 is unnecessary as they cancel out.
Your salary should just be 4/5ths of what you get - unless you've got some complex paid weekly/hourly/uneven working days confusion going on

withabix

kitchen_buff wrote: »

.

Current salary 5day week £10,000. divided by 52wks= £192.31 pw divided by 5 = £38.46 per day.
£38.46 multiply by 4(days) = £153.84 pw multiyply by 52(wks) = new salary of £7999.68.

OK, which thief stole the 32p?

4/5 of £10000 is £8000

cash99

Andy_L wrote: »

Putting on my maths geek head, the divide & multiply by 52 is unnecessary as they cancel out.
Your salary should just be 4/5ths of what you get - unless you've got some complex paid weekly/hourly/uneven working days confusion going on

Works ok for the gross salary but not the net, as the top slice is taxed more than the bottom slice

Andy_L

Net: Smett - net salary is always a nightmare - far to much depends on individual circumstances

The post I quoted said gross salary - I would hope that was obvious