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Net salary difference

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sultan123
sultan123 Posts: 441 Forumite
Sixth Anniversary 100 Posts Name Dropper Combo Breaker
Can anyone tell me the net yearly difference 
«13456710

Comments

  • 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
  • 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
  • Also is there any difference in net pay between 2022 and then 2023 due to tax year tweaks?
  • sultan123 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%).
  • 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
    Grumpy_chap Posts: 18,244 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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
    Marcon Posts: 14,385 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Try this: https://www.thesalarycalculator.co.uk/salary.php

    You can include salary sacrifice to get the comparisons you're looking for.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • sultan123 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.
  • 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
  • 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.
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