Noobie question about income

Lokolo

Ok I have started looking for jobs for my third year at uni as I am out in industry and it says £17k annual salary.

Now do advertised pay rates include the deduction or exclude the deduction of tax? (I am thinking latter).

So if it doesn't have tax taken away from it I am expecting to pay 20% rate, then NI insurance on top of that (which I can't figure out, but assuming its 11%), means I would eventually only get £11,730?

Is this right?

homeworkeruk

You're along the right lines but you've forgotten your allowances. You're allowed to earn £5,435 before you pay tax, and £90 a week before you pay NI contributions, so you pay tax on £17,000 - £5435 and NI on all but the first £90 a week. I'll let you work out the exact figures!

Lokolo

homeworkeruk wrote: »

You're along the right lines but you've forgotten your allowances. You're allowed to earn £5,435 before you pay tax, and £90 a week before you pay NI contributions, so you pay tax on £17,000 - £5435 and NI on all but the first £90 a week. I'll let you work out the exact figures!

Yeh I'll work it out, can't be bothered to do work at the moment, don't understand it

Thanks :-)

Elliesmum

Try this website - does all the working out for you. I've found it very useful in the past.

www.listentotaxman.com

EM xx

Lokolo

Ok thanks, also realised that as I will be working from June - June I should get away with some tax as its not from Apil-April. Year 1 I will earn £14k, Year 2 I will earn £3k which is under the threshold wooooooo, as long as I don't get a big old job in third year at uni it should be all good!

smartie1976

I work along the lines of about roughly 25*% of your total income will go in tax. This allows for your allowances and will give you a ballpark figure.
(it's harder for me to work out because my salary deductions include shares, pension, union, and work lottery scheme!).

*25% is slightly over, so it'll always be a conservative estimate in your favour.