Estimated Income

[Sal]

Can anyone help? A friend of mine has been offered a permanent employment position (35 hrs per week), and has been told she will get �7.50 per hour. She needs to know approx how much she will get per week after tax and national insurance (she currently has a temporary national insurance number).

[Oneeyedvic]

OKay I'll try. Total gross pay weekly will be �262.50. NI is 11% over �77 per week so �20.41. Tax would probably be emergency - 25% so �65.63 So takehome would be �176.46 if taxed on emergency. If she has a tax code of �4615 (usual) tax would only be �33.67 so takehome would be �208.42 Hope this helps

[Sal]

Oneeyedvic - Thank you for your reply. I have one more question though! What is emergency tax and why would she most probably be taxed at this rate?

[kags]

Hi there the national insurance will be 1% of everything over �91 (Oneeyedvic, you used the LEL not the Earnings Threshold), therfore �18.85. Tax will be �33.67 as Oneeyedvic says, making a total of �52,52, and net pay of �209.98. The emergency code is not 25%, it is the normal single persons code, but it does not take into account the tax free amount available for weeks prior to the commencement of employment. Once the employer obtains a tax code from the Inland Revenue (or if your friend has a P45 from a previous job this tax year), any unused free-pay (for example if your friend had not been working or had been claiming Job Seekers Allowance)will be allocated, and a refund given. The above figures for tax and NI will be the ongoing deductions for a single person, with no other benefits in kind or sources of untaxed income.

[Oneeyedvic]

It depends on if she has a tax code - eg 461L. If not the employers would not know what level of tax to pay her. Therefore they would pay her on emergency tax which would be 25%. This would normally be rectified in around one month, and she would get a tax rebate. I said that she would probably be taxed at that rate as she had a temp ni number - I may well be wrong though

[kags]

hi oneeyedvic - emergency tax isn't 25%. If they don't have a code, the employer will use the emergency code of 474L, which just treats the employee as a single person with allowances of 4745 but no accrued free-pay. I have just realised you used 4615 in your calculation, which is last years figure, so the tax would actually be slightly less, but only by a few pence. All in all, the net pay will be around �210 a week, with a refund to follow if there have been no previous earnings in the tax year. Have we bored you to death Sal?

[Oneeyedvic]

I most humbly bow to superior knowledge.

[kags]

no need for bowing Oneeyedvic - we got there between us!

[Sal]

Thanks to both of you. This website rocks! You have been a great help.