tax

[tinytom]

wif i earn �21,000 what is my take home after National Insurance and income tax?

[Miss Zippy]

About �1,260 each month. For basic tax payers, a good rule of thumb is you take home �60 per month for every �1000 of your annual salary.

[Buenchico]

Figures for a single, male employee, aged 16-64, not in a contracted out occupational pension scheme:

First �4895 is tax free. Next �2090 is taxed at 10%. (i.e. tax = �209). Remaining �14015 is taxed at 22% (i.e. tax = �3083).

National insurance = 12 months @ �148 = �1776

So, total deductions = �5068.

Net Pay = �15932 p.a.
Monthly net pay = �1328
Meekly Pay = �306

All figures rounded to the nearest pound.

Chris

[january_bug]

Don't forget that although Beunchico's info is correct technically, you don't actually get anything "free".  You get taxed on ALL of it, and then have to claim it back at the end of the financial year.  That means feeling skint for the first few months of employment (more skint than you should anyway) and then a windfall in June (if you're lucky, May). 

[Piper-AK]

January - I don't understand your post.  You seem to be saying that you pay your entire year's worth of taxes in two months and then pay nothing for the other ten.  Under Pay As You Earn your allowances and taxes are spread evenly over each paycheck (depending on your tax codes and any changes blah blah blah)

[january_bug]

Yes, I'm saying that you SHOULD, as Buenchico said, get your first �5000 free.  You don't.  You get taxed at 22p in the pound.  You should then get the next few grand at 10%.  You don't.  You get taxed at 22p in the pound.  So for the first few months of earning, you are taking home a lot LESS than you should be for the first few months of earning.  You get it back at the end of the tax year. 

This system of tax now, refund later, has meant that I cannot go travelling this year as I had intended because the revenue is taking my money now, and giving it back after I'd planned to have paid for the trip.  So I do feel skint now.  The windfall in June is correct - that's when most people get their tax rebates.  I know you pay all year round - hence saying you get taxed on ALL of it - as in ALL months of the year. 

[january_bug]

PS - I've been working for long enough to know what PAYE is.  In fact, you don't even have to work to know that - PAYE is just general knowledge. 

Tax rates aren't though tinytom - I'm not saying you don't know enough! :-)

[Miss Zippy]

january_bug, it sounds like the situation you're describing is where someone has been given an 'emergency' tax code.  This can often happen if someone is new to work or hasn't worked for a while and/or has no past tax code.  This can be a complete pain when this happens as, as you say, you often have to wait a while to be refunded the tax you've overpaid. It should only take a month or two though for someone to be issued with a tax code.  

[january_bug]

Yeah Miss Zippy - that's almost certainly correct.  My point was that, in reality, when you start a new job (or like me, your first job after graduation) you will get taxed like hell to start with.  I did fill in all the correct tax forms by the way, and I gave the correct NI number. 

That stupid system has ruined my gap year - funnily enough I'm just not a big fan of the revenue at the moment.  Or the idiot responsible for not allowing a default year in sutdent loan payments.  Or the evil swine who deicded we should pay interest whilst studying. 

For the usuals who think I love the government unconditionally - perhaps you'll believe me now when I say I don't!

[natalie_1982]

This doesn't happen with all new jobs Jan_Bug, I've only ever been charged emergency tax once and I was 15!

[january_bug]

Well ok, but it's happened with me every time, and with many of my friends.