Tax/NI

willhub · 14 Jul 2012 at 11:59

If I am working 40 hours per week, at just over £7 an hour, and earning around £283, how much money will I actually take home?

Same question for the sum of 240 as well.

Thanks.

buckeejit · 14 Jul 2012 at 12:01

http://listentotaxman.com/

Adam123 · 14 Jul 2012 at 12:02

FYI:

Tax Calc

:-)

^^^ just beaten to it ha

Kemik · 14 Jul 2012 at 12:03

Assuming no pension or student loan with full holiday at that same pay - £14,560 gross, £12,432 net (£239 a week).

http://listentotaxman.com/

Any overtime (up to a point) will be taxed at 20% with 12% NI. I.e. every extra hour you'll earn £4.76.

Joshct · 14 Jul 2012 at 12:05

Tad over a grand a month, same as me.

estebanrey · 14 Jul 2012 at 12:51

http://www.thesalarycalculator.co.uk/

willhub · 14 Jul 2012 at 23:05

On the first link, does employers NI have to be deducted from net wage?

mattyg · 14 Jul 2012 at 23:11

You don't need to worry about employers NI your the employee. That what your boss pays for the privilege of paying you a wage

Something Else · 15 Jul 2012 at 01:01

fyi tax and n.i are the same thing now. N.I use to be for the NHS but now they fund the same thing

Surveyor · 15 Jul 2012 at 01:39

Jamsames said:
fyi tax and n.i are the same thing now. N.I use to be for the NHS but now they fund the same thing

My understanding is that National Insurance is used to pay for the NHS, certain benefits and the state pension.

National Insurance is not a "tax", it's not directly available for general government expenditure.

The Government can, however, borrow any surplus from the National Insurance Fund.

Has this changed?

semi-pro waster · 15 Jul 2012 at 07:21

I don't have anything to add about the tax calculations but it's possibly worth bearing in mind that you might find yourself on an emergency tax code initially so potentially won't receive the full amount (although it will be paid back later) - hopefully it'll all be correct at the start but I'm just suggesting the possibility so you haven't already mentally spent the money before you receive it.

Mad old tory · 15 Jul 2012 at 10:12

Jamsames said:
fyi tax and n.i are the same thing now. N.I use to be for the NHS but now they fund the same thing

Not true. They are still separate levies if you like. NI gives you the right to a number of benefits which do not arise from just paying tax. The thresholds can also be slightly different and NI is calculated weekly rather than according to payroll run timings like tax is.

There is talk of merging the two. Not quite sure how that would work in practice with benefit provision or the overseas angle for people being seconded by their employers to a country we have a social security agreement with (EEA, US etc) or rather the vice versa which could be more problematic.

Of course in practice when it comes to your net pay, probably is worthwhile considering basic rate tax to be 32% factoring NI and broadly speaking once you are into higher rate the effective marginal rate being 42% given that is what will actually be taken off you.

Bear · 15 Jul 2012 at 10:28

Mad old tory said:
Not true. They are still separate levies if you like. NI gives you the right to a number of benefits which do not arise from just paying tax. The thresholds can also be slightly different and NI is calculated weekly rather than according to payroll run timings like tax is.

There is talk of merging the two. Not quite sure how that would work in practice with benefit provision or the overseas angle for people being seconded by their employers to a country we have a social security agreement with (EEA, US etc) or rather the vice versa which could be more problematic.

Of course in practice when it comes to your net pay, probably is worthwhile considering basic rate tax to be 32% factoring NI and broadly speaking once you are into higher rate the effective marginal rate being 42% given that is what will actually be taken off you.

Whilst what you say is correct, the fact that they are separate levies does not mean the money is ring fenced for that purpose. The reality is that once the money has been taken, all the money in terms of all different taxes sits in the same pot and are to all intents and purposes the same thing. NI doesn't go to the NHS or pensions or benefits any more than road fund licence or income tax.