Tax On Salary

[evedawn]

If I earn £940 per month without deductions for tax and NI what is the figure likely to be after these deductions please? Thanks

[tonyav]

Depends on what your tax code is evedawn.

[2sp_]

Your gross income should be on your payslip, evedawn.

[mccfluff]

http://www.listentotaxman.com/index.php

thats assuming basic tax code, you may get tax credit??

[mccfluff]

sorry £850.20

[evedawn]

Ok
Thanks everyone I do have a tax code but this salary is for a new job which I begin next month. The salary of new job is significantly less than my current job. Incidentally I'm not worried about tsk credits as my husband earns a very good salary so I'm sure I would not be eligible .

[evedawn]

Also - "when" will my tax code revert to show new lower salary? April?

[buildersmate]

Your tax code doesn't change if your salary changes. The amount of tax reduces if your salary is less.

[factor-fiction]

The tax code doesn't change according to your income.
The tax paid on your new job will be lower than at present but it's hard to say how much less it will be in March because it depends on earnings and tax paid in the last job. The online calculator should tell you what you'll get from April

[New Judge]

Assuming you are due to receive only one more pay cheque in this current financial year it is a simple matter to determine how much tax you should pay. Take the gross pay to date from your P45 and add £940 (the coming month’s salary) to that figure. This is your gross pay for the year. Reduce this figure by £8,105 (your tax free personal allowance, assuming you have just the standard allowance). This is your taxable pay. Take 20% of that figure (the tax due). Compare that figure from the tax deducted to date from your P45. The difference is the tax due to be paid (or refunded) in your March pay packet.

So, for example, if you have earned (gross) £12,000 over the first ten months of the financial year, your P45 should show £12,000 gross pay, and about £1,050 tax paid. Your final month’s pay will take your gross pay to £12,940. You have a tax free allowance of £8,105 for the year. This means that tax will be due on £4,835 making your tax bill for the year £967. You’ve already paid £1,050 so you will be due a refund of £83.

As far as NI is concerned you can earn about £633 per month before NI becomes due. Above this you pay 12%. So you will pay 12% on £307, which is about £37. Unlike income tax NI is not cumulative. It is charged on each week’s (or month’s) income in isolation and cannot be reclaimed in the same way as income tax.

Of course all this would be complicated somewhat if your earlier job took you into the 40% tax bracket.