National Insurance

[cokg2]

Hiya

Ive left uni and starting a job with Nissan. Ive been trying to calculate my Net salary (after those red b :censor: s have had half of it).

I can calculate the income tax, thats the easy bit, but im stuck on how to calculate my NI contributes.

Anyone got a clue.

Lets suppose the salary is 21k

Thanks

edited by dawesy 14/7. please use the censor smiley not bad language. thanx

[Gareth B]

Salary (gross) = £21000

Income Tax = £3980.40

National Insurance = £1525.33

Salary (net) = £15494.26

That's the basics of it. Sad isn't it. :(

[vmail]

Gareth B could you show me what formulas you used?

I get PAYE and National Insurance deducted (and student loan soon)

my tax code is 474L (I know what that means)

[Gareth B]

I've no idea mate I used ask jeeves.

[+Steve]

i think it is based on different codes like Vmail mentioned.

[vmail]

I know that my tax code means that if I earn less than 4,740 I wont get taxed

[cokg2]

You have to be careful with the Ask jeeves stuff, as its wrong.

Ive calculated my tax liability to the nearest penny, and its £600 less than the quoted Ask jeeves result you just listed.

What im after is the way to calculate NI

:)

[Fidgits]

rule of thumb..

NI = 2%..

[vmail]

cheers, what about PAYE?

[EmmaG]

Class 1 National insurance is based on earnings between £91.01-£610 per week this is then NICed at 11%, anything over £610 per week is then NICed at 1%

So if you earn £500 per week Class 1 National insurance is worked out on £408.99 at 11% = £44.98 NIC

[Hou]

PAYE is pay as you earn and is more for the self employed, being an accountant i could work it out for you but would be in breach of my companys rules and regulations, but when you worked out your tax did you take into account your personnal allowance etc?

[EmmaG]

These rates are for the 2004/05 tax year

[jaxx]

rule of thumb..

NI = 2%..

i normally account for a 25% loss for all deductions in a pay packet (tax, NI etc..)

outcome is normally just less than i take home

[Fidgits]

rule of thumb..

NI = 2%..

i normally account for a 25% loss for all deductions in a pay packet (tax, NI etc..)

outcome is normally just less than i take home

of course, it used to be 1% of the first £27,000 you earnt.

But Labour, needing to pay for all the mistakes they've made, upped it to 2% and removed the ceiling! :ffs:

But of course, this wonderful spending spree Gordon Brown is about to go on wont mean a tax rise... well not until after the general election anyway! :censor: :ffs:

As Rob says, for 21K expect to take home approx 15-16.

[knightrider]

rob watch out i see tegan is online dont strat saying how much you earn, she'll want wineing and dining more often!

[jaxx]

yeah i know

dont worry shes aware of how much i earn already :P

[cokg2]

so what do u mean by NI = 2%?

Is that 2% of the pre or post tax figure. And is that 2% monthly?

ta

[Fidgits]

so what do u mean by NI = 2%?

Is that 2% of the pre or post tax figure. And is that 2% monthly?

ta

urgh, here we go..

right take your Gross income (e.g. £21000 above)

From that,National insurance (NI) is 2% of the gross figure, so its £420 a year.

Now Income tax is slightly more complicated.

On the first 4 grand (or so) that you earn, you pay no tax.

Anything you earn above £4,000 up to £27,000 you pay 23% tax

Anything you earn above £27,000 you pay 40% tax on.

now tax and NI are taken at time of payment, so if your paid weekly, you pay it weekly, if your paid monthly, it is taken every month..

[Hou]

where did you get the two percent from exactly for the national insurance?

Secondly tax is calculated:

allowance where no tax paid - 4745

the next £2020 is calculated at 10%

then the next £2021 - £31400 is at 22% of the amount between threasholds

then any over is at 40%

[vmail]

cheers ian, that helps me now

[Fidgits]

where did you get the two percent from exactly for the national insurance?

Secondly tax is calculated:

allowance where no tax paid - 4745

the next £2020 is calculated at 10%

then the next £2021 - £31400 is at 22% of the amount between threasholds

then any over is at 40%

erm, it was all over the news about 6~8 months ago when Labour increased it to 2% from 1%!!!

Yes, the first threshold is £4745 - i couldn't be bothered looking up the exact figures..

I thought there was another one, but didnt know the number so wasnt going to post incorrect info..

So are you saying the 10% band is 4745 - 7,000?

[Hou]

well its 10% for 4745 - 6765

and the national insurance is actually 11% on the first 610 per week then 1% after that but will be going up to 2 %

[Fidgits]

well its 10% for 4745 - 6765

and the national insurance is actually 11% on the first 610 per week then 1% after that but will be going up to 2 %

Trust me on this mate.. it has already gone up to 2%, it happened 6 months ago!

[Hou]

well on this 2004/2005 tax card i have infront of me it says 1% but ill take your word for it!

all the info on the tax and stuff is here infront of me

[Fidgits]

look here. confuses me!