Listen To the Taxman .com calculator question

willhub

willhub

willhub

Caporegime
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Hi.

I want to be sure, if I place 7.50 per hour for a 37.5 hour week into the calculator, is the "Net Wage" exactly what I will get at payday, which says £1,039.75 a month?

The reason I ask is because I'm calculating every month for the next 2 years how much money I will have to spend and where to budget, but obviously if the wage figure is wrong it could land me in trouble.

Also please take a look at this spreadsheet, leave the amounts as they are, looking at the balance at the end of each month, is it safe paying the monthly rent that I have put (360pcm)? I really don't trust it, because just adding an extra £50 to the food bill makes the figures get scary!

https://dl.dropbox.com/u/10062971/WhatICanAfford.xlsx

Cheers.
 
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Feels about right - you can do a rough calc yourself if you're on a std tax code, just divide the annual gross by 1.325 - that's not correct for a number of reasons but is close enough. Doing that I get approximately 980, as a higher portion of that salary will be within the personal allowance it makes sense for properly calculated take home to be a bit higher.
 
Will be on your payslip. If you get no benefits through work, never have and haven't had to pay tax back you will be on the standard allowance which is what the calculators all use unless told otherwise
 
I looked on a P45 from the job center and it says 810L, so is that what I'll be on when I start work?
 
You can make that spreadsheet much easier to follow by "naming" the key params, e.g. name the wage something like "wage", then in each formula you can refer to it as wage rather than the less descriptive B7. Just select it and replace "B7" at the top-left with whatever name you like.
 
Thanks I'll try that.

Anyone have an idea if that sort of budget for accommodation seems reasonable?

Also on Listen to the Tax Man if I type tax code of 810L in, It shows 1039, but typing just L in shows 904, so will I actually only get £904 each month?
 
willhub said:
Anyone have an idea if that sort of budget for accommodation seems reasonable?
Click to expand...

Wouldn't that depend on where you are living and under what circumstances? From memory you've said you'd be moving to Manchester? It might be a reasonable budget for sharing there, for somewhere like London it's almost certainly going to be hard to find something for £360 pcm unless you are living in a complete dive.

Does your budget include utilities? If not then you'll need to factor that in. You also don't seem to have allowed anything for entertainment apart from Spotify/telephone bill - you might not go out all that much but to assume you'll not eat out occasionally or buy presents etc seems a little unrealistic.
 
I've allowed £50 a week for food (possibly over optimistic), and I could allow an extra £50 a week max.
 
There is no field in that spreadsheet for fun. Unless that is coming out of your £50 sustenance budget... If that's the case then maybe you won't make it to month 24 :(
 
You're doing weird **** with Excel, e.g. =SUM(B40-B14-B10+B12). Works out though, I think the numbers are OK.

Estimates look sane enough. Your first month will be less than you hope as you'll inevitably be on the wrong tax code, so you may be a couple of hundred short for the first couple of months until HR sort themselves out.
 
Why will I be on the wrong tax code??? Surely they don't always make mistakes, I assume I can claim it back though if I am?

What's wrong with the formulas in Excel? All I'm doing is subtracting one field from the other.

I do need to modify it, as some weeks I'll spend more than 50 quid on food and sometimes less, so I Ned to be able to enter that onto the spreadsheet.

In regards to fun, I don't do much LOL, nearest thing for me is going to the cinema once I. A while or to the Harvester lol, but I do cycle, so every Saturday I'll do 50 to 100 miles on my bike so that's fun.
 
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By £50 a week on food...do you mean your everyday stuff and takeaways? As I don't spend much more than that on a weekly shop for two people for a full week. Ok it wouldn't be half of that for one person as you'd be buying the same sized packs of meat & veg etc but still.

£50 a week spare is verging on the mean side if you're single - you'll spend most of that easily if you do something like take someone out for dinner. Maybe £80 would be more realistic (again I don't spend that but we are saving at the moment) and you'd be covered for when you spent less some weeks and more others
 
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When are you starting, you will likely pay almost no tax in 2012-13 once they sort your tax code.
Its split monthly, but HMRC work annually they do not care if you earn £1000 per month, or £12000 in April and take the rest of the year off. Obviously they work in arrears but come the end of the tax year you should be able to sort out a tax rebate.
 
Tax codes are changing for next year as well, the allowance will increase to 9455.

£50/pw on food is more than enough as a single person you'll probably be spending closer to £25/pw on food, unless your a fussy eater and demand salmon and steak daily!
 
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