Salary Calculators

fiisch

I am trying to work out what % AVCs I should make to my pension in order to:

1). Not have to repay child benefit;
2). Qualify for the lower tax bracket and benefit from marriage tax allowance (my wife is well below the £11.5k threshold).

When playing with the numbers, I'm also trying to understand exactly (or at least to the nearest £50) what my take-home pay will be, as our current monthly outgoings are quite high so need to see if we can afford to meet our obligations if I significantly increase my AVCs (currently at 5%).

Added to the equation, with effect from next month my employer is changing to a Salary Sacrifice scheme for the pension, which if I'm brutally honest, I don't fully understand despite reading the blurb.

I've tried Salary Bot and The Salary Calculator but am getting wildly different results (£400+) difference from each, which makes a big difference to my decision. Could someone point me in the direction of a reliable salary calculator please? I've checked and re-checked and I don't think I'm fudging any of the details in either.

Current circumstances are:

- Income - £59,000
- Age - 31
- Student Loan (course started pre-2012 so Plan 1)
- Salary sacrifice pension scheme.

Does Salary Sacrifice also affect my monthly contributions towards my student loan debt?

Tom99

Do you have any savings interest or dividend income as I think that also has to be taken into account in order to work out if you are a higher rate taxpayer or meet child benefit repayment limit?

Dazed_and_confused

Google gov.uk adjusted net income to find out more about the child benefit charge.

Pensions can be tricky with salary calculators as there are so many options for payment. How exactly are you making the payment, out of taxable salary, out of already taxed salary or separate payment you make to the AVC company? Is basic rate relief given by the AVC company?

And as Tom99 says you need to consider your total income not just salary.

Toddy2

Having just spoken to HMRC over repaying part of my Child Benefit. Employee Contributions towards an occupational pensions don't count apparently. I would have thought AVC's should be ok.

Dazed_and_confused

By employee contribution to an occupational pension do you mean something along these lines

Monthly salary £5000
8% Pension contribution £400
Taxable salary £4600

So P60 shows pay of £55200 rather than £60000?

fiisch

Not receiving any notable interest/dividends to speak of - have a HSBC 5% regular saver, which will be >£100 interest for the year.


My pension is paid via salary sacrifice, so is effectively pre-tax and NI (i.e.: I volunteer to take a drop in pay, and my employee pays the same amount extra into my pension).


So to meet Net Adjusted Income requirements for getting both the married tax allowance and child benefit, I'd have to contribute 25% (plus any bonuses) and just sneak in under the £45,000 limit.


What I need to understand is, with the student loan (Plan 1), what does that do to my take-home pay? Or do I just increment up my contributions until I get to a level I'm comfortable?