New job - help me work out numbers

[Newjobwishmeluck]

Have a couple of questions. My heads up my bum and I’m no good when it comes to numbers so if someone could help me out that would be great! Apologies if I've posted in the wrong section but thought money would be a good place to post.

Starting new job next week -

Salary is £20k a year plus mileage costs which could possibly take it up to £24-25k.

First question is how much will my take home pay be after tax/NI?

I have already done this on the gov website however I’ve used my current tax code and I’m not sure if I’ll be on the same one or a different code as in my previous job I was only earning 11k a year. Will I get a new code because I’m earning over the tax allowance?

Also, as it’s salaried, what happens when there’s 5 weeks in a month? Would I earn more? Please excuse me if I seem thick!

This is my first position on a salary basis, I’ve always just been on an hourly rate in my previous jobs so things were a bit easier to work out.

Many thanks

OK the rates are slightly different, but only over £50,000 so you're all good

No, Wales has the same tax codes as England.

OP, what you’ve posted aren’t tax codes. Should be 4 numbers and a letter.

Yes you can profit from mileage, or cover a lot of the costs of running a car that you would have to pay anyway - tax and MOT is fixed and insurance doesn't necessarily increase proportionally to mileage.

You'll probably spend more on tyres and servicing with a higher mileage but unless your car is very thirsty, less than a third of your mileage payment is needed for fuel so there's plenty to pay for other costs.

Unfortunately my car is a 1.6 Audi so I'm not too sure how well it's going to do on the fuel front but I'll just have to wait and see and hope it doesn't take too much! X

Mileage costs are designed to cover not only petrol but the potential wear and tear on your car. In my most recent role I was paid 40 p per mile.

salary = an annual amount paid in 12 instalments
wage = an hourly rate paid weekly or 4 weekly or monthly (as per company policy)

I've said it once but i'll say it again.

The cost of running a car isn't restricted to just the cost of fuel. There are other costs involved in running a car. You'll just about break even on 0.45p per mile but you certainly won't profit.

Look upon the mileage as a refund of the money you've already spent.

Have you added business use to your car insurance as well?
Normally have to specify the milage too

Standard social domestic & commuting isn't going to cover you when you are travelling between sites.

Sorry for the delay in replying.

Yes already have business use on my car insurance. I was in a similar job a few years ago so have had it on my insurance policy since then.

I spoke with my employer today and he asked me if I would be happy to claim the rest of the mileage online through the gov website. So rather him pay the full 45p he wants to pay 25 and I claim the rest from the gov.

I'm happy to do so but I'm just wondering if anyone has experience with this? Is it quite straight forward to do?

I plan to claim every month but would the money come straight through?

Thanks and I do apologise for the endless amount of questions

I think you claim once a year, after the end of the tax year.

In all honesty, it's a ball ache.

It would be so much easier if he pays you the 45p for each mile rather than this half arsed a bit from him, a bit from gov.uk

Oh really @Marmight that's a massive pain in the ass a bit frustrating as now I think I'll be out of a pocket massively!

It helps his cash flow.
Not yours.
Can you ask if he is willing to pay 45p per mile directly to you?

I spoke with my employer today and he asked me if I would be happy to claim the rest of the mileage online through the gov website. So rather him pay the full 45p he wants to pay 25 and I claim the rest from the gov.

You can’t claim “the rest” from the government. You can get tax relief on the difference once a year. So 20% on 20p per mile. That’s 4p. So you’ll get 29p per mile in total, you’ll have to cover the rest of the cost.

Your new boss sounds dodgy as hell.

Yes you will be out of pocket as you don't get 'the rest' from the tax office, but your tax bill is reduced by 4 pence for every mile you do, so you're effectively only getting 29p per mile, not 45p. It's still a good chunk towards your car running costs but it's tight of your employer to not pay the full 45p.

Has he said why he's reduced what you're entitled to and what would he do if you refused to use your own car for work?

He was originally @Marmight, it was advertised as 45p per mile in the first interview and then when I spoke to him today he asked me if I minded claiming the rest from gov and he just pays 25p.

I only said yes because I thought it would be easy. Had I known I could only claim it once a year instead of every month then I wouldn't have said yes.

Will be a awkward chat but I'll have to mention it otherwise I'll be massively out of pocket as most of my day to day duties involve driving around.

Thank you by the way

Maybe he doesn't realise that I can't claim the money? I certainly didn't realise it so maybe he doesn't know either as he was the one who suggested I claim the rest from the gov so it may not even be the case that he's being stingy, just uniformed perhaps but I'll definitely speak to him about it.

He seems like a nice employer so far so I can't see it being an issue hopefully

I don't actually think you will get the full 20p difference from gov.uk.
You might only get 20% of 20p. eg 4p which is the tax relief on the 20p difference.

I'm not an expert so it would be good if someone could confirm.

He's not doing you any favours paying mileage so its not £4k - £5k extra above the salary. It's money you have to pay out on running the car in the first place.

No company car on offer?

Also speak to the tax office about your code. Welsh tax codes do begin with the letter C but I'm not sure what those numbers mean after your code so worth getting them checked to confirm what your tax free allowance is for the year

Right I see!

He said it would be an extra 4K-5k on the basis of 45p but obviously he's changed it now so it would be a lot less I imagine....

No company car on offer I'm afraid.
I'm happy to use my own car as long as the travel costs are covered.

I will phone HMRC up tomorrow just to double check (not that I don't believe you all) and then I'll have a chat with him

Would it be petty of me to mention it though? I'm doubting myself. Would you be pissed off if you were an employer as it's give and take in any job?

I wouldn't mind if the mileage had been advertised as 25p in the first place but it wasn't

I'm not an expert so it would be good if someone could confirm.

I am an expert and I already have.

You have as well @NeedAnExpert

A very appropriate name indeed!

How many miles will you be doing, OP. If is more than 10k you can only claim 25p per mile on the miles after that.

Must be close to 10k, based on the £4-5k annual figure.

What did he say about the car costs OP?