Calculate Tax & NI

Discussion in 'CycleChat Cafe' started by Downward, 29 Apr 2010.

  1. Downward

    Downward Über Member

    Location:
    West Midlands
    Any bright sparks help me ?

    I need to work out :

    If you get paid £500 per month, Then you get given a grant of £200 a month (taxable) how do I work out how much tax I have paid on this £200.

    I can calculate £500 which is say £5 and £700 which is say £40 but the £20 extra won't be taxable at £35 so I need to know how to calculate.
     
  2. ChrisKH

    ChrisKH Veteran

    Location:
    Essex
    Try the Age Concern tax calculator. I know you're probably not old, but it will help you calculate the difference between two rates of pay.

    http://www.ageconcern.org.uk/AgeConcern/tax-calculator.asp
     
  3. OP
    OP
    Downward

    Downward Über Member

    Location:
    West Midlands
    Thanks Couldn't really get an answer off there though.
     
  4. TonbridgeSteve

    TonbridgeSteve Senior Member

    Do you mean that you have already paid tax on the £200 you received?

    The HMRC has a tax & NI calculator but they are really only relevant if you are being paid both lots through PAYE, but in case they are any use to you the NI calculator is here and the tax one here
     
  5. accountantpete

    accountantpete Legendary Member

    You are allowed to earn £6475 a year before paying tax so anything above that will be taxed at 20%.

    NIC is a bit complicated - use the HMRC calculator (you are Table A)

    http://www.hmrc.gov.uk/calcs/nice.htm
     
  6. fossyant

    fossyant Ride It Like You Stole It!

    Location:
    South Manchester
    Easy way - assume you get about 69-70% of the £200 in your hand - or £140 ish.
     
  7. OP
    OP
    Downward

    Downward Über Member

    Location:
    West Midlands
    Yeah we get say £500 per month salary.
    Then for our Uni course we get say another £200 per month.

    Now the course funders want the breakdown of tax and NI on their £200 but I can't work out how to do it.

    On £500 it's what £5 ish but on £700 it jumps to £35 ish
     
  8. TonbridgeSteve

    TonbridgeSteve Senior Member

    assuming it's all paid in one go through PAYE on a monthly basis and that your on a standard tax code of 647L then:

    Gross £500 - no tax, Ees NI of £2.64 and Ers NI of £3.07 - net for you £496.93

    Gross £700 - £32.08 tax, Ees NI of £24.64 and Ers NI of 28.67 - net for you £643.25

    The jump is because as accountantpete said you can earn 6,475 a year without paying tax (or approx £539 a month) so on the £500 a month you will pay no tax but the extra £200 is nearly all taxed.
     
  9. radger

    radger Über Member

    Location:
    Bristol
  10. OP
    OP
    Downward

    Downward Über Member

    Location:
    West Midlands
    Yeah thats it so how much should i say out of the £200 is Tax and NI ?

    Maybe proportion it as a % ?
     
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