Take home pay

[BillStickers]

Can you give me a quick formula for working out my net pay from my gross salary?

thanks

[Reverandfunk]

Deduct 20% from your gross I think lol

[aristotle]

No, that's not right. There are three tax bands (10%, 22% and 40%) as well as free pay determined by your tax code. You also have to pay NMational Insurance contributions if you earn above a certain level of pay. As a rule of thumb, if you're in the 22% bracket (up to �34,600), you will take home around 72% of your gross.

[BillStickers]

Thanks to you all.

I was told years ago to just divide by 15 to get your mothly take home, but that's way off.

cheers

[Reverandfunk]

I know that there are 3 tax bands and NI and different tax codes but if I multiply by gross pay by 22% and then subtract that figure it comes to within �2.00 of my take home pay so shove it up your ar5e.

[Reverandfunk]

And by the way smart ar5e 72% of my gross is way off what I take home

[niki2002]

http://www.pru.co.uk/home/calculator/income_ta x/

Try this link. Very Useful. Works it out for you!!

[kempie]

A quick, simple formula does not really work when many rate bands are involved in the calculation.

Examples of how the percentage of your gross to net can change with increasing earnings;

Gross < �5200 ... Net 100%
Gross � 6850 ... Net ~95%
Gross � 8650 ... Net ~90%
Gross �11050 ... Net ~85%
Gross �15300 ... Net ~80%
Gross �24850 ... Net ~75%
Gross �51550 ... Net ~70%
Gross �94500 ... Net ~65%

Accurate answers are obtainable using online calculators such as the one above or this...

http://www.listentotaxman.com/index.php?year=2 007

[annie0000]

Hi niki - wonder where you got that from - hahaha. ;0)