Bonus Tax/Salary Help?

chrisbur

Jordy456 wrote: »

Hi Chris,

Is that 1000 with the 40% taken off?

Sorry not sure exactly what you mean. The figures i have given are aprox figures for tax for the four months. Month 1 does include some tax at 40% This tax is then converted to 20% tax over months 2 and 3 Month 4 then goes to just paying at 20%.

chrisbur

RADDERS wrote: »

https://www.thesalarycalculator.co.uk/

This is the website I use and it is very accurate.

As with most salary calculators they are of no use when you have situations like this where earnings vary so much that they cross the boundaries between tax bands. There is one on the HMRC web site that can handle this.

Jordy456

Hi Chris,
Does this figure also take NI into account?

So first month - 4067 after tax...?
2nd month I will earn around 2450 before tax...
3rd month will be 2450...

Thanks mate

chrisbur

Jordy456 wrote: »

Hi Chris,
Does this figure also take NI into account?

So first month - 4067 after tax...?
2nd month I will earn around 2450 before tax...
3rd month will be 2450...

Thanks mate

No as advised these are figures for tax.
NI would be about 405 on 5165 and about 264 on 2900

A tax calculator can be used to work out NI if you know its limits. In this case the calculators give a close enough answer for each month if put in separately but the wrong answer if the total earnings for the year were put in. In this case the payment for £5165 is above the upper earnings limit so some NI is paid at 2% not 12% if you used a calculator at the year end it would assume the total gross was paid in 12 equal instalments and that would result in 12% being assumed for all NI payments.