Financial Situation
Bendy1224
Posts: 50 Forumite
Hello Everyone,
just thought I’d Put a post out there. Apologies if this is a very silly question I am asking, but my financial circumstances are probably going to be changing in about a month and think I am going to need to get into a full time job. What is the best way to work out if the job is going to be able to cover all my outgoings and give me some money for left over spending after all out-goings? ( even if had to do more hours than usual each week.
Many thanks in advance for your incoming replies :money:
just thought I’d Put a post out there. Apologies if this is a very silly question I am asking, but my financial circumstances are probably going to be changing in about a month and think I am going to need to get into a full time job. What is the best way to work out if the job is going to be able to cover all my outgoings and give me some money for left over spending after all out-goings? ( even if had to do more hours than usual each week.
Many thanks in advance for your incoming replies :money:
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Work out outgoings versus incoming salary?????0
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thanks for posts.
but how do I account for tax and Ni contributions? just say for example out goings for year was £20,00 how would I work out appropriate salary to be able to afford outgoings?? 0 -
As above.
Use a salary calculator0 -
There are "reverse" salary calculators which do the maths the other way around. For 20,000 net for example, gross would need to be GBP 24871. These are raw though and need tweaking with specific information such as pensions, student loans, any benefits received that can be impacted, etc etc.
You may also want to review the other side of the equation (the amount outgoing). There are some great skills on these forums who can help almost anyone reduce their outgoings.Peter
Debt free - finally finished paying off £20k + Interest.0 -
The calculator above is useful for working out a rough guide on what you may expect your net income 'take home pay' to be after deductions.
To understand the theory behind it, you could look at the Gov website to find the latest information on personal allowances and income tax rates etc.
At a glance, you will have a personal allowance (standard personal allowance is currently £11,850).
This means you can earn up to £11,850 per annum before tax is deducted. You will then be taxed at 20% on any income exceeding this allowance (40% on income above £46,350 and 45% on income above £150,000).
So for example:
- Annual income is £30,000
- Deduct your personal allowance of £11,850 to arrive at the taxable income = £18,150
- This income is then taxed at 20% = £3,630
- This leaves you with £26,370
You will also be deducted Class 1 National Insurance contributions if you are employed through PAYE. Again, there is an earnings threshold in that you will only be charged National Insurance on earnings above the Primary Threshold which is currently £8,424 per annum.
Again using the example above:
- £30,000 annual income
- Deduct the Primary Threshold (£30,000 - £8,424 = £21,576)
- £21,576 @ 12% NICs = £2,589.12
So, with an income of £30,000, you'd be taxed approximately £3,630 with NICs to pay of £2,589.12. Deducting this from the £30,000 annual income would leave a net figure of £23,780.88
This doesn't take into account any pension contributions you may make and it is based on the assumption you have no allowances or benefits that would alter your tax code.
I hope this gives you a better idea on what deductions may be made from your pay, however I would suggest you read the information on the Gov website for full details.
Note: The above rates and thresholds are the standard rates - this will differ slightly if you are resident in Scotland.0 -
many thanks for your reply. I am in uk. so my personal allowance is as you rightly said.
just really not sure how to be sure what take home I need to be taking home in order to have some sort of quality of life and also afford to pay my out goings. apologies if you have already covered this. struggle with reading information correctly sometimes. what do you mean regarding benefits in relation to tax code?:money:0 -
For a quick estimate reduce the gross by 30%.0
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many thanks for your reply. I am in uk. so my personal allowance is as you rightly said.
just really not sure how to be sure what take home I need to be taking home in order to have some sort of quality of life and also afford to pay my out goings. apologies if you have already covered this. struggle with reading information correctly sometimes. what do you mean regarding benefits in relation to tax code?:money:
Benefits that you receive and expenses that you incur may impact what tax you are deducted or what relief you are entitled to.
Benefits would include things such as the use of company cars, paid accommodation, travel and subsistence etc. You would then need to pay tax on the cash equivalent of the benefit but your employer should deduct this for you.
And on the flip-side, you may be able to claim tax relief if you use your own money for things that you must buy to do your job. You can only claim if your employer does not reimburse you these costs.
Again though, I'd suggest visiting the Gov.uk website for full information as I am by no means an expert in this. Search 'Tax codes' then the 3 sub-sections there will explain it in more depth.
I would say in a lot of cases though, benefits and expenses would not apply so it may be irrelevant depending on what type of job you are looking for.0 -
sorry everyone seems I have not been too clear with my wording. my benefit that I am currently receiving is coming to a end I have a nasty feeling and possibly will have to get myself into a full time job. whats the best way to work out what yearly or monthly salary I need to take home each month. finding im going round in circles in my head as just say my expenses was £1400 each month and I put this into a income calculator it will then deduct 20% of tax and necessary NI deductions of the income I entered so then will be left with not enough to pay the whole of my out goings for that month. hope I have been clearer this time around. apologies ive made this so confusing..
Ben0
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