Net salary difference

sultan123

Can anyone tell me the net yearly difference 

Dazed_and_C0nfused

If paid evenly through the year then it's going to be something like this,

Real extra salary = £6,650
Less tax = £2,660
Less NI = £216

Net pay = £3,774

All the above assumes,

1) Not Scottish resident for tax purposes

2) The extra pay won't take adjusted net income over £100k

3) High Income Child Benefit Charge isn't involved

4) No student loan deductions

sultan123

Dazed_and_C0nfused said:

If paid evenly through the year then it's going to be something like this,

Real extra salary = £6,650
Less tax = £2,660
Less NI = £216

Net pay = £3,774

All the above assumes,

1) Not Scottish resident for tax purposes

2) The extra pay won't take adjusted net income over £100k

3) High Income Child Benefit Charge isn't involved

4) No student loan deductions

Isn't it less than £3774 due to 5% salary sacrifice

sultan123

Also is there any difference in net pay between 2022 and then 2023 due to tax year tweaks?

Dazed_and_C0nfused

sultan123 said:

Dazed_and_C0nfused said:

If paid evenly through the year then it's going to be something like this,

Real extra salary = £6,650
Less tax = £2,660
Less NI = £216

Net pay = £3,774

All the above assumes,

1) Not Scottish resident for tax purposes

2) The extra pay won't take adjusted net income over £100k

3) High Income Child Benefit Charge isn't involved

4) No student loan deductions

Isn't it less than £3774 due to 5% salary sacrifice

No, by agreeing to sacrifice 5% you are only getting extra pay of £6,650

£6,650 less tax of £2,660 and NI of £216 = £3,774.

The NI figure is for the forthcoming tax year (3.25% rather than 2%).

Dazed_and_C0nfused

sultan123 said:

Also is there any difference in net pay between 2022 and then 2023 due to tax year tweaks?

My figures are based on the 2022:23 tax year when the NI rate increases.

In your example there will be no tax change between 2021:22 and 2022:23.

Grumpy_chap

sultan123 said:

Isn't it less than £3774 due to 5% salary sacrifice

DaC appears to have accounted for that in the first line.
£7k x 0.95 = £6,650.  The remaining 5% was salary sacrifice pension.

Marcon

Try this: https://www.thesalarycalculator.co.uk/salary.php

You can include salary sacrifice to get the comparisons you're looking for.

sultan123

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

If paid evenly through the year then it's going to be something like this,

Real extra salary = £6,650
Less tax = £2,660
Less NI = £216

Net pay = £3,774

All the above assumes,

1) Not Scottish resident for tax purposes

2) The extra pay won't take adjusted net income over £100k

3) High Income Child Benefit Charge isn't involved

4) No student loan deductions

Isn't it less than £3774 due to 5% salary sacrifice

No, by agreeing to sacrifice 5% you are only getting extra pay of £6,650

£6,650 less tax of £2,660 and NI of £216 = £3,774.

The NI figure is for the forthcoming tax year (3.25% rather than 2%).

So to confirm the £3774 is from April 2022 right. 

What would difference be between 80k and 88k please in overall annual take home.

Thanks for your help.

sultan123

Marcon said:

Try this: https://www.thesalarycalculator.co.uk/salary.php

You can include salary sacrifice to get the comparisons you're looking for.

Thanks for some reason that site isnt working for me. Please could you key in numbers and tell me what it comes to. Only deduction is 5% salary sacrifice

Dazed_and_C0nfused

Your post is about net pay.

Salary sacrifice is where you agree to give up part of your salary in return for your employer contributing more to your pension.

So other than reducing the £7,000 to £6,650 it has no bearing on your net pay.