Calculating gross income

[Mully79]

Can't get hold of my payslips at the moment and no-one here in the office to ask
It just occurred to me that the yearly wage I thought I was receiving I might not actually be getting, unless my maths skills are just terrible

Can anyone calculate an approximate gross annual income based on these figures?

My weekly take-home pay is 234.89 (34 hours)
I receive 55 per week in childcare vouchers (tax free, already deducted from this salary)
No other income or overtime

[warpig3]

Not too sure how childcare vouchers work but �234 a week works out at around �286 before tax so that makes �14768 per year. How the vouchers are factored in after that I am not sure.

[R1Geezer]

Approx �15200pa

[mccfluff]

i'm making it just under �14300 - however i am assuming you are in lower tax bracket and have an allowance of 6475?

�14300 (less allowance �6475 + �2860 child care vouchers)
leaves �4965.00 taxable (x20% =993) + NI (x11% 944.35)

leave you with around �237 pw

[Mully79]

Childcare vouchers are tax / NI free so I receive �55 x 52 wks (�2860) a year approx, paid through my wage - but I receive the vouchers and not cash.

So in total R1Geezer's figures would make �18060 pa, warpig's total would be �17628 pa, including the vouchers

Both of which were more than I calculated (thank goodness) - and 18K is what I should be on. How did you both calculate the figures?

[Mully79]

Hi McFluff

The �55 per week has already been deducted from the net amount I receive. This is my main salary so yes I should have a tax free portion then 20% thereafter

So I receive 234.89 (net) plus 55 in vouchers (not taxable)

[mccfluff]

whichi ia what i was checking if you are on the 'normal tax bracket of �6475 then that plus your child care vouchers is the tax free portion.

if my claculations are right then you are not being paid correctly, i'll just do the sums for �18k

[mccfluff]

sorry that made no sense

your child care vouchers are deducted off your gross income along with your tax free allowance and then you are taxed on the rest

now i think

�18 - 6475+2860 = �8665 x (20% tax and 11%NI) = �3084.35 which leaves you with 14915.65 net/52 �286.84

i did that one with the help of the work paye thingy so that should be spot on, i can't vouch for my first calc as that was done with me using fingers and toes etc

[mccfluff]

that tax free sum shoud read �9335 not 8665, think i have dyslexic fingers!

anyway this is just based on a regular tax code, if you have deductions for student loans or a co car for example this will affect your income

[Mully79]

Hi McFluff

Thanks for your calculations. I will have to dig out my payslips and scrutinise them further.

I think up until I started getting these childcare thingies ages ago I was paid correctly and it all looked straightforward, I then had a payrise (�500) and I took it that the small increase was correct. Problem is, this was not written down, just a verbal thing. I don't have any other deductions either.

Although I'm thinking now - as I reduced my hours from 37.5 to 34 as well - the 18K was for full time hours. Must have been. Christ I am braindead today!

[warpig3]

Mully, I just messed around with this until I got a net weekly pay similar to yours.

http://listentotaxman.com/

[Mully79]

Thankyou warpig

I just calculated with 2680 deductions (childcare) and a salary of 16320 (34 hours, 37.5 being 18K), which came in at about �4 more than I get now, so it's got to be right

I think I need to get some sleep and stop worrying I'm being scammed! And use my brain a bit more. Thanks for all your help!

[R1Geezer]

I just rearranged the calculation, usually you start with the gross and end up with the net. Remember when you where about 13 and they started teaching Algebra, I just rearranged the equations, still works even now!

I had to make certain assumptions and I ignored the child benefit bit. I also could find exact figures for the tax free bit so I used last years, so my figure is a bit ball park!