Calculating Tax?

[Drisgirl]

My 19yr old daughter is having an interview today for a job which pays 13k per annun.
Her tax code is 562L (the standard rate for a single person with no dependants-I think anyway)
She has convinced herself she will only clear �840 per month but I have been trying to tel her it would be more than that but cant substantiate it.
Can anyone help because I cant work out the formula -just an aproximation would be a brilliant help.

[Lakitu]

Her Gross monthly income will be �1083.33, her Tax will be �120.24, her NI will be �71.50, leaving her with �891.59 Nett to herself.

[Drisgirl]

Thank you -at least its a bit more than she expected.

[msemma]

http://www.i-resign.com/uk/financialcentre/tax _calculator.asp

useful salary calculator!

[Stevie13]

Yes your daughter is quite right.
She will probably clear �840 per month, maybe less.

This is an extremely good wage for a 19 year old after tax.

13,000 P.A = 1083.33 P.M
Tax allowance = � 5620 beable to earn before being taxed at 20%
Anything over � 468.33 P.M

Tax �123
Nation Ins approx 7.5% = � 86.64
Pension at 8.5 % = �81.20

Leaves your daughter with � 792.50 Approx P.M

However there is more to it than that because you get an allowance on your Pension and NI contributions.

So if you add � 50 back on it gives you � 842.50

Hope this helps !!!

[Drisgirl]

Thanks Stevie for that -just that she has a �450 per month mortgage (including insurances etc) so it will leave her a bit neat but at the end of the day she was lucky /unlucky to be able to buy her own flat -so she isnt looking for a lot extra just enough to survive on.Im sure she will if she gets another part time job.
So she isnt as daft as i thought she was then lol !!
Anyway things are looking good -looks like she may have got the job as she had a phone call this morning from the company and it looks like its a permanent job instead o the temprary she thought it may be -she'll get on her feet. eventually -im sure

[Skyline D]

Not quite clear on why Steve just invented a pension contribution and added it into the calculation?

Did I miss something? Nowhere in the original info is there any suggestion of a pension contribution being paid.

[Drisgirl]

She didnt mention a pension right nough but its with the Norwish Union -I didnt mention that before so i would think they would have a pension scheme.
She initially was interviewed for a temp post but had a call saying she was being considered for a permanent post starting in July which would be brilliant and then would involve a pension as you cant opt out a company pension scheme -so that info has come in useful.
Bloody complicated all this -looks like her tax code changed in April but wont be effective until September -by which time she'll get a tax rebate from April.

Little wonder she is confused lol

[Skyline D]

The information posted previously will be ballpark what she earns per month once her tax allowances catch up presuming she hasn't worked since April. She'll get three months tax allowances in month one though so may pay no tax at all for one or two months until it catches up, depending on what taxable income she's already had this tax year.

[Drisgirl]

She has been paying emergency tax for months now so its all just been sorted out this week -thats why she is confused to what she would earn -think I have a reasonable ball park figure to give her now.
Thanks everyone -i'll let you know what her first months salary is- lol