Hi all
My son started work two months ago
he doesn`t get a wage slip but is paid £320 per week after tax and NI
his net income for the year will be £16640 but he is thinking of taking up a loan and they require his gross income details
what is the calculation to work out his gross wage
TIA
Well he should get a wage slip.His tax code and NI payments need to be known before anyone can work this out. He needs to know what they are taking out for stoppages, why doesn't he get one?
He should get a wage slip to show his off-takes. he needs to know what tax code he's on and make sure his employer is paying his NI. Ask him why he has no pay slip.
Some firms have electronic pay slips now. He needs to find copies- either online or in paper form. I wouldn't mess about trying to work out his gross pay from net pay, tax code, NI etc as there may be other deductions too and the tax may be affected by his working only part of the current tax year.
He should have a contract of employment, anyway, which will show his gross pay - then HMRC will give him a tax code. You can't work it out from the bottom up until you know his tax cost
I think his gross is likely to be nearer £20K than £25K but he should find out the exact figure. Surely he received an offer letter or other statement showin his rate of pay
factor you are right, I was thinking he took home about 1600 a month because I didn't concentrate on the question and just saw those numbers!. The standard single person's tax code is currently 1000L. A code of 911L suggests he is having to pay more tax for some reason??
Assuming he has the standard income tax personal allowance of £10,000 his gross pay is £20,125 (to the nearest fiver).
On this he will pay £2,025 on his £10,125 taxable pay and £1,460 National Insurance (which is payable at 12% on income over £7,956). This makes total deductions of £3,485 (ignoring the pennies). £20,125 minus £3,485 equals £16,640.
The letter he's received from the taxman should confirm the pay calculation too. He must have had an offer letter for the job which would show the gross pay, even if they haven't given him a written contract.
Yes he does, there are lots of occasions in life where you are asked to produce payslips - mortgages for example, and probably loans. They are not just going to take a verbal unsubstantiated figures.