Will I benefit from reducing my hours .....

Sn00py

I currently work 37.5 hours a week over 4 days earning an annual salary of £49,680 or £4,140 a month. In addition to this I receive an annual work pension of £11,515.40 pa or £959.62 a month. I currently pay £563.20 tax on salary and £192.00 tax on my pension per month. I have a Pensions Salary Sacrifice of £177 per month.

Can anyone tell me how much I can expect to receive monthly if I reduce my working week down to say 30 hours a week.

MeteredOut

Without more details, no-one will be able to tell you exactly what the changes will be. eg, does your salary sacrifice scheme return any employer NI contributions to you.

Have you tried one of the many online salary calculators? eg, use £3132 (4140/37.5*30) as your gross monthly pay and keep the same figures for pension etc.

eg, https://mypaycalculator.co.uk/

When you say your salary is £49680, is that after the 177*12 salary sacrifice has been taken off, so without SS, your gross salary would be £51804?

And, what do you mean by "benefit" from reducing hours? Financially, you'll obviously take home less. What benefit are you looking for?

Marcon

Sn00py said:

I currently work 37.5 hours a week over 4 days earning an annual salary of £49,680 or £4,140 a month. In addition to this I receive an annual work pension of £11,515.40 pa or £959.62 a month. I currently pay £563.20 tax on salary and £192.00 tax on my pension per month. I have a Pensions Salary Sacrifice of £177 per month.

Can anyone tell me how much I can expect to receive monthly if I reduce my working week down to say 30 hours a week.

You ask if you will 'benefit from reducing your hours'. Yes if you want more free time, no if you mean will have the same amount of pay! Even if reducing your hours takes you out of higher rate tax, you'll still have lower income.

As suggested above, use one of the many online calculators to work out what your take home pay would be. It will ask for your tax code, and you probably have two codes. As you're receiving a pension of £11,515 and paying tax on it, try using the standard tax code of 1257 minus 1151 (ie tax code 106) to allow for tax on the pension you are receiving, and then enter your salary details, which should give you a very close approximation.

Mozza001

Cant you salary sacrifice some more to drop below the higher tax?

surreysaver

60% of something is more than 100% of nothing 

penners324

Your take home pay will go down. 

You can increase your pension payments though

zagubov

Are you on a Final Salary or Career Average Scheme?

penners324

zagubov said:

Are you on a Final Salary or Career Average Scheme?

It says salary sacrifice in the op. So an auto enrolment dc scheme 

Dazed_and_C0nfused

penners324 said:

zagubov said:

Are you on a Final Salary or Career Average Scheme?

It says salary sacrifice in the op. So an auto enrolment dc scheme 

With a surprisingly small amount being sacrificed considering the op is £10k+ into higher rate territory just with the earnings and pension income!