If you earn 100k. How much do you get after tax?

[ihatethecold]

Just curious really, im trying to work it out without success. Is it close to 5k per month after tax?

www.mranchovy.com/calc/

£5,384 a month

That's very handy thank you. I am currently compiling a spread sheet of our ins and outs, (as we want to try and up our monthly saves)

According to that his monthly pay is actually £321.00 short of what it should be, I know he ups his health scheme to include the children and myself but I don't know what other deductions he has? So that's my mission for tomorrow. Thank you x

Pension contributions vary a lot so that may explain it. I used to lose £350pcm to my pension on about £65k.

I am referring to my husband by the way, just re read that (i deleted a paragraph before replying) and my post is very random! He is also supposed to be re joining the voucher scheme in work for childcare but keeps forgetting!

There are probably some benefits which are included in his tax code (for instance health insurance). You can put his actual tax code in my calculator which I have linked to properly this time. Pension contributions can affect things in different ways too.

rejoining the voucher scheme? It's a shame he left, he can only get £124 a month worth now.

whatever goes into your pension and is deducted from your salary, doesn't have NI or tax charged on it (if you are a higher-rate taxpayer then pension contributions are a real bargain although there are arguments about it)

So £500 in contributions off the gross is not £500 off the net pay

so do you get help with vouchers towards childcare when you earn 100k a year?

wow

No PigletJohn, NI is always calculated on salary including pension contributions, and contributions to many schemes are taxed with the scheme claiming back basic rate tax and the employee claiming back tax at higher rates through their tax return.

It depends on his tax code. If he has any benefits of employment such as health insurance, a company car or so forth, they will affect his tax code. I've had situations in the past where I've had a negative tax-code wiping out any personal allowance. Then the tax bill is very high

His company now use a different scheme or company? we used it to pay for our youngests nursery, but then she started school, and our primary school don't have any clubs at all!!! Was a tad 'annoyed' that they had reduced the amount!

Our eldest are now in a new school and they accept them towards after school care, hence re applying. The old scheme still have some funds in, so I'm trying to find them!

Missing £321 now located, so all ok.

can anyone reply to me?

does anyone earning any amount get help with childcare vouchers?

Childcare vouchers are available to all earners if the employer offers them. You purchase them from gross earnings so in effect they are tax free. They recently cut the amount you could buy. Each parent can buy but amount is the same regardless of number of kids. Dependent on whether your contract says salary sacrifice or benefit you may be able to continue to have them even if not earning while on mat leave. The company funds these not the State (although there must be some kind of corp tax break to incentivise them for doing so). Haven't looked it up recently but this is how i understand it works.

Childcare vouchers arent 'help' as such. As said, it is a salary sacrifice, so someone on 100k can buy £124 worth of vouchers each month from pre-tax income.

MrAnchovy - I think pigletjohn is referring to contributions to occupational schemes, which are generally taken out of gross pay, before tax and NI are applied (similar to salary sacrifice for vouchers etc). Therefore tax and NI are saved immediately at your highest rate.

If you contribute to a personal pension scheme, then yes, you are correct in saying you pay the full tax and NI on your salary. Any basic rate tax relief is usually added to your personal pension contribution by the pension provider (who reclaim it from hmrc). Any higher rate relief is claimed via your tax return.

Trust me, I'm a financial adviser

Yes, that's why I said "deducted from your salary"

Yes many people are members of occupational schemes, and many occupational scheme contributions are deducted from gross pay: perhaps you both have personal knowledge of the OPs situation (and of everyone else that is reading this thread) so you know that both of these apply.

But many people make contributions to personal pensions through their salary which are NOT deducted from gross pay, and many schemes offered by employers are treated in the same way - in fact this is true for an increasing number of employers as stakeholder schemes are adopted by employers to meet their upcoming requirements.

AND YOU ARE WRONG ABOUT NATIONAL INSURANCE - EMPLOYEE PENSION CONTRIBUTIONS ARE NEVER RELIEVED FROM NI

I would find it hard to trust a financial adviser that could get it this wrong :(

Any basic rate tax relief is usually added to your personal pension contribution by the pension provider (who reclaim it from hmrc). Any higher rate relief is claimed via your tax return.

I'm glad to say you got this bit right. But then again, that's exactly what I had already said.

"But many people make contributions to personal pensions through their salary which are NOT deducted from gross pay"

well I didn't know that.

I formerly opted for a "salary sacrifice" scheme where I some of my compensation was paid to my pension scheme instead of going into my taxable earnings. It sounds like my package was better than the one you describe.

Yes, I thought salary sacrificed pension contributions were exempt from NI contributions?

mine were, as they weren't part of my Taxable Income there was also a saving on Employers NI which I think at the time was about 12%

The contributions were classed as Employers Contributions not Employee Contributions, so there was no tax rebate (of course, as they had not been taxed)

Yes, salary sacrificed contributions are not employee contributions and should not be shown on your payslip as part of your gross pay calculations (except perhaps as a note of contributions made by your employer).

MrAnchovy, I pay £141.11 per month into a an employer's pension scheme (final salary, public sector).

Comparing your calculator with my most recent payslip, the differences between what your calculator says I should pay in NI and PAYE Tax and what my payslip says I actually paid is £45.93 (NI) and £56.54 (PAYE tax)

So, it looks as though my pension contribution comes out of my gross salary and is not being used for the purposes of calculating my NI contributiosn. Am slightly concerned that my employer has this wrong...

I would have thought people on £100k p.a. would be in a fair position to argue the case for salary sacrifice, and if accepted, to argue for a share of the Employers NI saved (in my case I was able to get all of it, because of the way the revenue:compensation was calculated), but it would depend on the size and inertia of the company.

LulaPalooza my calculator is not designed to perform a full payslip calculation - here is one that appears to be: I have no idea how accurate it is.

£141 @ 40% is £56 (there are some complicated rounding formula used in calculating actual payslips so we need to work to round pounds) so the difference there is your pension. The difference on NI is probably because the pension scheme is contracted out so you pay a lower rate of NI (12.2% instead of 13.8%) - I won't give the details of this calculation because it will reveal how much you earn. Again I wanted to keep my calculator simple so it doesn't cater for this, although I will add it to the next revision - the main thing my calculator does that is not available anywhere else on the web AFAIK is calculate the gross pay required to give a certain rate of net pay.