Net salary difference

sultan123

Cross_Man said:

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.

I am going to get an accoutant.

In meantime need help understanding extra 10k

Ath_Wat

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.

He probably just gets everyone to do all his work for him, just like here.

Grumpy_chap

Income Tax on £10k sole-trader earnings extra above £80k - £90k PAYE = £4k.
Plus NI:
https://www.gov.uk/self-employed-national-insurance-rates

Dazed_and_C0nfused

sultan123 said:

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.

You are really asking the wrong question.

On the figures you have quoted the tax will be £4k (£10,000 x 40% = £4,000).

But that's assuming you aren't Scottish resident for tax purposes.

And the £10k doesn't mean HICBC (or more HICBC) becomes payable

And the £10k doesn't mean your adjusted net income increases to the point where it starts to impact your Personal Allowance.

And you aren't too bothered about the extra Student Loan deductions which might be payable.

Or the Class 2 NI which might be payable.

Or the Class 4 NI which might be payable.

Grumpy_chap

Dazed_and_C0nfused said:

You are really asking the wrong question.

On the figures you have quoted the tax will be £4k (£10,000 x 40% = £4,000).

But that's assuming you aren't Scottish resident for tax purposes.

And the £10k doesn't mean HICBC (or more HICBC) becomes payable

And the £10k doesn't mean your adjusted net income increases to the point where it starts to impact your Personal Allowance.

And you aren't too bothered about the extra Student Loan deductions which might be payable.

Or the Class 2 NI which might be payable.

Or the Class 4 NI which might be payable.

Hopefully, with that, the OP will see why this is too complicated to ask in a forum and receive a reliable response and understand why the overwhelming recommendation is to engage the professional (paid for) services of an Accountant. 

The OP has been asking sequential questions around this topic in steps since February which really is sufficient time to have engaged the services of an Accountant and get all the answers clear and set things up in the most tax efficient structure.  In fact, not doing that could well result in higher tax liabilities as the time window passes to do the initial set up of the structure to maximise tax efficiency and it is not now possible to take advantage of any gains that may have been possible in the past tax year.

Given the salary levels in consideration, the OP can more than afford the services of an Accountant so I am perplexed as to why they prefer to try and fail to get the full answers in a public forum where the credibility of the responses cannot be tested.

JohnnyB70

sultan123 said:

Cross_Man said:

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.

I am going to get an accoutant.

In meantime need help understanding extra 10k

Taxed at 40%, so you get £6,000.

Are you not willing to tell anyone what the job is? Like some others I’m intrigued what job pays that but doesn’t require any numeracy.

sultan123

JohnnyB70 said:

sultan123 said:

Cross_Man said:

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.

I am going to get an accoutant.

In meantime need help understanding extra 10k

Taxed at 40%, so you get £6,000.

Are you not willing to tell anyone what the job is? Like some others I’m intrigued what job pays that but doesn’t require any numeracy.

Thanks this is all I wanted to verify. What NI on this amount is payable. 
No student loan, not scottish resident.

I am a mechnical engineer.

Ath_Wat

£167.82 NI.

If anyone gives you any other figure they are wrong.

sultan123

Dazed_and_C0nfused said:

sultan123 said:

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.

You are really asking the wrong question.

On the figures you have quoted the tax will be £4k (£10,000 x 40% = £4,000).

But that's assuming you aren't Scottish resident for tax purposes.

And the £10k doesn't mean HICBC (or more HICBC) becomes payable

And the £10k doesn't mean your adjusted net income increases to the point where it starts to impact your Personal Allowance.

And you aren't too bothered about the extra Student Loan deductions which might be payable.

Or the Class 2 NI which might be payable.

Or the Class 4 NI which might be payable.

No student loan, not scottish resident.

sultan123

Ath_Wat said:

£167.82 NI.

If anyone gives you any other figure they are wrong.

How was this calculated