How much will my Net salary be?

BWZN93

Hello

Ive got a job, and I start in a week. Im trying to sort out my finances, and was wondering if anyone can help with working out how much Tax and national insurance i will pay.

Im graduating now, so my student loan repayments wont start until april 2006. No pension in place yet, thats for later on in the year. my salary will be £23000. How do I work out how much tax and NI I will pay? Ive used a few 'calculators' but they all give me different figures, a £70 difference overall for net pay each month!

Ive got as far as saying I will be getting £1916.66 gross per month, and I am single, so I should get full personal allowance. Sorry I cant give an exact figure, I was on BR as a student, so I dont know what the allowance is going to be!!

Jo xx

YorkshireBoy

http://forums.moneysavingexpert.com/showthread.html?t=53910

See the second post (mine) and substitute the "gross pay" with your own.

Edit: Take home/month will be around £1,438 (or £17,258/annum), although this figure will not be accurate if you do not work a full tax year, ie April to April. Estimated tax and NI per month are £311 and £167 respectively.

HTH
YB

BWZN93

:mad: bl@@dy hell - Robbing me blind!! £556 in Tax and NI - absolutely criminal!! :mad:

And I thought I was going to have a decent salary......

YorkshireBoy

£478 - see my edit above. It gets better, the more you earn, the more you pay. Wanna swap tax bills?

ctm_2

jw1096 wrote:

I was on BR as a student, so I dont know what the allowance is going to be!!

You should probably check to see if you are due a refund then...

Stonk

£556 in Tax and NI

Ah, those were the days, I remember them fondly ...

withabix

jw1096 wrote:

:mad: bl@@dy hell - Robbing me blind!! £556 in Tax and NI - absolutely criminal!! :mad:

And I thought I was going to have a decent salary......

Get used to it!!

It will be WORSE to start with if you've got no IR record or current year's P45 and thus no tax code, as your tax allowance will be NIL initially, so you will pay an extra £85 per month approx in tax and NI.

You will get that bit back, but not straight away!

ctm_2

iainkirk wrote:

It will be WORSE to start with if you've got no IR record or current year's P45 and thus no tax code, as your tax allowance will be NIL initially, so you will pay an extra £85 per month approx in tax and NI.

That's not right. If you complete a P46, then you might go straight onto 489L code on a culmulative basis, meaning you will pay the correct tamount of tax, not too much, not too little. All depends on wether this is your first job on this tax year or not.

If you have already worked this tax year (doesn't sound like you have) then give them your P45.

withabix

You won't get a tax code until IR issue one however. That will usually be after your first monthly pay as most (large) monthly-paying employers close the payroll to changes very early in the month.

Until you get a code, you will be on Week1/Month 1 basis = NIL tax allowance.

ctm_2

iainkirk wrote:

Until you get a code, you will be on Week1/Month 1 basis = NIL tax allowance.

Week/Month 1 basis meens that if paid monthly you get 1 months worth of your allowances (i.e a 12th of your personal allowance, and a 12th of the 10% rate band), and if weekly you get a weeks worth (a 52nd of your personal allowance etc..). it does not mean you have no allowances.

If it is your first job, and you complete a P46, then the instructions state the your employer should put you onto a 474L code, on a culmulative basis so that you get all of your allowances.

The P46 has 3 statements. You tick whichever one or more, or none apply to you. They are:
A) This is my first job since leaving full time education
This is my only job
C) I also receive a pension

So, if this is your only job you tick B. If it is also your first job since leaving education, you tick A as well. In both those circumstances your employer should operate 489L on a culmulative basis.

Tick just B, and your employer should oerate 489L on a week/month 1 basis, so you only get a proportion of your allowances.

Tick any other combination of boxes, or tick none of them and your employer should operate BR, meaning you get no allowances, or 10% rate band, and all income is taxed at 22%.

iainkirk wrote:

You won't get a tax code until IR issue one however.

Again, if completing a P46, you will. If handing in a P45 from a previous employment in the same tax year, you will.