Take Home Pay

[hammerman]

My daughter, who will be 18 on the day she starts her new job, will be earning £17,000 pa,.....or approx. £1,416 pcm.

Does anyone know what her net pay will be after tax and NI is taken out

She will have a pension too but i'll work that out based on her contribution percentage when we know it.

She's 18, tax code is 10005L and that's it really

Just an approx. is fine

Thank you

[Jackdaw33]

£937.39 p.c.m.

[ToraToraTora]

roughly 10k is tax free and 7k will be taxed/Ni at 31% so she'll get 10k + (0.69*7k)=14830/12=£1235 per month is that's not to the penny but there or there abouts. Not sure how JD arrived at that figure.

[weecalf]

Title reminds me of what was on a little sign where I worked a while ago .Why do they call it take home pay ,because with the little wages we get its the only place we can afford to go is home

[Jackdaw33]

I arrived at that figure because I'm stupid. I subtracted 33.8% from the whole amount, forgetting the personal allowance.

[Old_Geezer]

I always tended to assume I'd net about two thirds of the gross when I used to have a pay packet. It tended to always be approximately right.

https://www.gov.uk/income-tax-rates/current-rates-and-allowances
https://www.gov.uk/national-insurance/how-much-you-pay

[Old_Geezer]

Don't forget other deductions such as pension.

[Old_Geezer]

Sorry, thought I'd had a brainwave, then reread the OP and see you don't want to consider that yet.
I'll go back to bed.

[ToraToraTora]

my figure assumes no other deductions but as OG says there may be things like pension payments etc.

[hammerman]

Thanks guys.....it's her first full time job and she's all excited and wants to know how much she'll bring home. I'll find out her pension percentage contribution. Cheers, Hammers

[Calibax]

I make it about £116 tax and £90 NI leaving £1210 take home

[fiction-factory]

The personal allowance is now £10600. NI is calculated weekly/monthly and starts at around £672pm , and the NI rate is 12% now I recall.

I calculate a slightly higher net pay figure for this year as she gets 12 months tax allowance spread over how ever long she works. It depends on exactly when she starts. If she starts 1st August and is paid at end of the month that means 9 months' earnings will be around £12744 in the tax year. So her tax will only be 20% of (12744-10600)=£ 428 pa or £48 pm over 9 months.

NI will be 12% of £1416-672 which is a little under £90 pm

So deductions will be £138pm this tax year. I calculate that leaves a net pay of £1288.

Her tax will go up after April as the personal allowance is spread more thinly over 12 months.

Of course pension and possibly (but unlikely) student loan deductions could also be deductable. It also depends on whether she has had any other income (including JSA ) in this tx year

[fiction-factory]

I see the tax code is 10005L. I assume that's a typo as they don't take that form- should be 4digts+L. i have assumed the allowance is the full £10600 but if the allowance is only 10005 for some reason it would mean more tax is due

[fiction-factory]

sorry that's all rubbish as I used last year's tax allowance. The personal allowance went up from £10600 to £11000 for the current tax year so even more money will be tax free. If she starts in August or later she will pay very little tax this year. I need a calculator

[fiction-factory]

NI- I agree with Calibax: £90 pm

Tax- I get a much lower figure than everyone else as I assume an August 1st start and a basic allowance of £11000. I calculate close to £40 pm

So deductions of £130 pm leaving net pay this tax year of £1316pm

Can you check her tax code please as yours may be an out of date one from a previous year

[Calibax]

You're probably right on the tax FF. As an approximation I just calculated on a month 1 basis assuming a tax code of 1000L rather than a cumulative basis pro rated for Aug-Mar.

[fiction-factory]

Thanks. The tax code given does seem odd

[New Judge]

Yes indeed her tax code should be 1100 not 1000 if her circumstances are normal.

Assuming it is 1100 and that she gets eight month’s salary in 2016-17 she will have gross pay of £11,333 (Just under £1.417 per calendar month). Income tax for the year will be payable on just £333 making a liability for the year of £67. That liability should not fall due until her gross pay exceeds £11,000, which will not be until she gets her pay next March.

If for some reason her tax code is 1000 (meaning she only has a personal allowance of £10,000) she will have to pay tax on £1,333. Tax due then would be £266. She should begin paying this next January when she should pay £33 followed by two months at £117 (I’ve rounded all these figures up to the nearest pound).

National Insurance is charged at 12% on amounts over £671 per month. NI is not levied on a cumulative basis like income tax is. (If she works just one month in a tax year the full NI is due on her pay). That amount due (12% of £1,417 minus £671 which is near enough £90) will be payable every month.

[fiction-factory]

Yes- i should have used 8 months not 9 months for this tax year assuming she starts 1st August.
I think tax will be deducted from the start though, NJ, rather than once her salary reaches the threshold since it's normally worked out on a cumulative/projected basis.
Anyway, we all agree on £90 pm NI and very little tax this tax year

[New Judge]

Yes I think you're right, ff.

It's some time since I had much to do with payroll matters. Back then the cumulative tax tables would have shown no tax due month by month until liability haad arisen. But I think you're right - HMRC like to make things far more complicated (and more prone to error) these days and so work on estimates. I think my overall figures are near enough correct though. It's just a matter of how the tax due will be collected.

[fadeout73]

check here
http://www.moneysavingexpert.com/tax-calculator/