Net salary difference

Cross_Man

sultan123 said:

Would I need to indicate 5% salary sacrifice in the online calculator if I do 85x0.95?

I am hoping to have accountant soon

To have a job at £90k package, you must be an intelligent and capable person and I assume that includes a certain level of numeracy skill.  You are obviously computer literate because you are using this forum.

So, if you do what you suggest, are you taking account of the SS pension twice?

If you do one or the other, are you taking account of the SS pension twice?

Given the apparent anxiety about tax and NI matters, you could really benefit from the services of an Accountant who can run scenarios for any situation you are concerned about and will be easily affordable given your salary position.  It will be worth the fee just for the peace-of-mind but actually it is entirely possible that the Accountant will identify tax opportunities that effectively make their service an investment rather than a cost.

Dazed_and_C0nfused

sultan123 said:

Grumpy_chap said:

Take the pensionable salary £85k and multiply by 0.95
Add the non-pensionable car allowance to the answer.
Plug that outcome into an online salary calculator.

You seem to have a new scenario of high paying job that needs assessing every few weeks.  This is at least the second scenario just this week.

It would be worth engaging the services of an Accountant.

Would I need to indicate 5% salary sacrifice in the online calculator if I do 85x0.95?

I am hoping to have accountant soon

No, you should really just ignore salary sacrifice in calculators, tax returns etc as you are not due any tax relief etc on them.

Salary sacrifice means you are agreeing to give up some of your salary in return for your employer paying extra into your pension.  And there is absolutely no pension tax relief available to you on employer contributions.

So say for example your salary is £85k and you sacrifice 5%.  For all tax (and NI) calculation purposes you are starting with £80,750.  The £85k is never featured.

Grumpy_chap

sultan123 said:

Grumpy_chap said:

Take the pensionable salary £85k and multiply by 0.95
Add the non-pensionable car allowance to the answer.
Plug that outcome into an online salary calculator.

You seem to have a new scenario of high paying job that needs assessing every few weeks.  This is at least the second scenario just this week.

It would be worth engaging the services of an Accountant.

Would I need to indicate 5% salary sacrifice in the online calculator if I do 85x0.95?

I am hoping to have accountant soon

No.
You need an Accountant.
But, for this, please just follow what I set out above:

1. Take the pensionable salary £85k and multiply by 0.95.  Answer = £80.75k
2. Add the non-pensionable car allowance (£7.8k) to the answer.   Answer = £88.55k
3. Plug that outcome into an online salary calculator.    Answer = £59.1k  with common assumptions.

I think we must be reaching the point where there is not a single possible salary combination that this has not been covered in the various threads.  Which salary calculator are you using that is so difficult to understand?

Dazed_and_C0nfused

Grumpy_chap said:

sultan123 said:

Grumpy_chap said:

Take the pensionable salary £85k and multiply by 0.95
Add the non-pensionable car allowance to the answer.
Plug that outcome into an online salary calculator.

You seem to have a new scenario of high paying job that needs assessing every few weeks.  This is at least the second scenario just this week.

It would be worth engaging the services of an Accountant.

Would I need to indicate 5% salary sacrifice in the online calculator if I do 85x0.95?

I am hoping to have accountant soon

No.
You need an Accountant.
But, for this, please just follow what I set out above:

1. Take the pensionable salary £85k and multiply by 0.95.  Answer = £80.75k
2. Add the non-pensionable car allowance (£7.8k) to the answer.   Answer = £88.55k
3. Plug that outcome into an online salary calculator.    Answer = £59.1k  with common assumptions.

I think we must be reaching the point where there is not a single possible salary combination that this has not been covered in the various threads.  Which salary calculator are you using that is so difficult to understand?

Surely it can't be long before the op mentions (adjusted net) income above £100k.  Whole new load of fun 😱

sultan123

Grumpy_chap said:

sultan123 said:

Grumpy_chap said:

Take the pensionable salary £85k and multiply by 0.95
Add the non-pensionable car allowance to the answer.
Plug that outcome into an online salary calculator.

You seem to have a new scenario of high paying job that needs assessing every few weeks.  This is at least the second scenario just this week.

It would be worth engaging the services of an Accountant.

Would I need to indicate 5% salary sacrifice in the online calculator if I do 85x0.95?

I am hoping to have accountant soon

No.
You need an Accountant.
But, for this, please just follow what I set out above:

1. Take the pensionable salary £85k and multiply by 0.95.  Answer = £80.75k
2. Add the non-pensionable car allowance (£7.8k) to the answer.   Answer = £88.55k
3. Plug that outcome into an online salary calculator.    Answer = £59.1k  with common assumptions.

I think we must be reaching the point where there is not a single possible salary combination that this has not been covered in the various threads.  Which salary calculator are you using that is so difficult to understand?

That is what I have done but that doesn't show me how much pension is being taken out every month?

Grumpy_chap

sultan123 said:

Grumpy_chap said:

sultan123 said:

Grumpy_chap said:

Take the pensionable salary £85k and multiply by 0.95
Add the non-pensionable car allowance to the answer.
Plug that outcome into an online salary calculator.

You seem to have a new scenario of high paying job that needs assessing every few weeks.  This is at least the second scenario just this week.

It would be worth engaging the services of an Accountant.

Would I need to indicate 5% salary sacrifice in the online calculator if I do 85x0.95?

I am hoping to have accountant soon

No.
You need an Accountant.
But, for this, please just follow what I set out above:

1. Take the pensionable salary £85k and multiply by 0.95.  Answer = £80.75k
2. Add the non-pensionable car allowance (£7.8k) to the answer.   Answer = £88.55k
3. Plug that outcome into an online salary calculator.    Answer = £59.1k  with common assumptions.

I think we must be reaching the point where there is not a single possible salary combination that this has not been covered in the various threads.  Which salary calculator are you using that is so difficult to understand?

That is what I have done but that doesn't show me how much pension is being taken out every month?

No.
The pension is the 5%.
Taken out at step 1 before using the online calculator.

I am struggling to see why you find this so difficult given you must have good capability as indicated by the senior level jobs you are able to secure.

sultan123

Grumpy_chap said:

sultan123 said:

Grumpy_chap said:

sultan123 said:

Grumpy_chap said:

Take the pensionable salary £85k and multiply by 0.95
Add the non-pensionable car allowance to the answer.
Plug that outcome into an online salary calculator.

You seem to have a new scenario of high paying job that needs assessing every few weeks.  This is at least the second scenario just this week.

It would be worth engaging the services of an Accountant.

Would I need to indicate 5% salary sacrifice in the online calculator if I do 85x0.95?

I am hoping to have accountant soon

No.
You need an Accountant.
But, for this, please just follow what I set out above:

1. Take the pensionable salary £85k and multiply by 0.95.  Answer = £80.75k
2. Add the non-pensionable car allowance (£7.8k) to the answer.   Answer = £88.55k
3. Plug that outcome into an online salary calculator.    Answer = £59.1k  with common assumptions.

I think we must be reaching the point where there is not a single possible salary combination that this has not been covered in the various threads.  Which salary calculator are you using that is so difficult to understand?

That is what I have done but that doesn't show me how much pension is being taken out every month?

No.
The pension is the 5%.
Taken out at step 1 before using the online calculator.

I am struggling to see why you find this so difficult given you must have good capability as indicated by the senior level jobs you are able to secure.

I have finally understood, I am so sorry for being slow!

Can I just add my self employed income onto that and add all of that into salary calculator then

Grumpy_chap

sultan123 said:

Can I just add my self employed income onto that and add all of that into salary calculator then

No.

The situation with regard to the income tax for the £10k sole-trader income has been explained elsewhere.
You have provided insufficient information for an answer to be given regarding the NI for the sole-trader income.

I assume the previous idea in another thread of employing your wife for the sole-trader income is now accepted as not viable.

You really need to employ an Accountant.  You will likely recover their fees through tax savings.

Cross_Man

Dazed_and_C0nfused said:

Surely it can't be long before the op mentions (adjusted net) income above £100k.  Whole new load of fun 😱

Yes, what a fun thing to look forward to, maybe a subject for the Jubilee Weekend?  We'll need something to keep busy and Liz will no doubt like it if we are thinking about the money we give her.

I am actually surprised by the number of queries about salary and take-home impacts from people with high salaries and the concern to be so precise.  In addition to varied queries from the OP, in the recent similar queries from

• an employee in the NHS at £91k,
• another comparison for a job mover from £81k to £90k (then £92k)
• comparison between £95k PAYE or £750 per day UC

At these levels, a "near enough" answer would usually do and that can be go simply by comparing current take-home to salary ratio and extrapolating pro-rata up to the new salary or using any simple calculator online.  Not like at the lower income levels, where the precise pennies make a real difference and can be critical.  At the £90k income levels, it is "enough" and a bit more or a bit less is not going to be life-changing.

It's probably even simpler than that - if you are on £80k a year and offered a new job at £90k a year, you know you will be better off (financially) in terms of take home pay.

It also makes practical sense at these types of income level, especially with the added complications of PAYE plus sole-trader income or rental income or employed spouse considerations to engage the professional services of an Accountant.  That can give far more accurate assessment, taking everything into consideration, in a way that cannot be covered in an internet forum.  Tax savings are likely to save the costs of the Accountant's fee, plus there will be value in the peace-of-mind.

sultan123

Grumpy_chap said:

sultan123 said:

Can I just add my self employed income onto that and add all of that into salary calculator then

No.

The situation with regard to the income tax for the £10k sole-trader income has been explained elsewhere.
You have provided insufficient information for an answer to be given regarding the NI for the sole-trader income.

I assume the previous idea in another thread of employing your wife for the sole-trader income is now accepted as not viable.

You really need to employ an Accountant.  You will likely recover their fees through tax savings.

What info is needed? 10k tax  at40% and set up sole trader. 10k is total after required deductions have been made.