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quick question over tax please

2 replies

purplepeony · 23/11/2009 15:47

I am looking at applying for a job p/t- which pays £14,400 for 3 days.

How much of that would I lose in tax and NI- net monthly income?
I am curently self-employed so pay tax in a lump sum, so can't do a comparison.

anyone?

OP posts:
Aussieng · 23/11/2009 16:34

Purple,it's a bit complicated and depends on all sorts of things like pension and whether you are contracted out or not but as a rough and ready calculation, assuming that the £14,400 is pro rated (ie I do not need to multiply that by 3/5) then I think you would be paying tax and NI of around £2,500 pa. This assumes that this is your main or only employment such that you can make that declaration and your employer will put you on a standard tax code. You have a tax free allowance of £6,475 and then pay 20% tax and 12 % NI on the balance (roughly because the NI does not work in quite the same way as the tax). This gives around £980 pcm.

I assume that you are currently using your tax free allowance on your self-employed income so bear in mind that this will be lost going forward (because it is already set against your employment income)such that your tax on self employed income will increase and that the 40% rate kicks in at £43,475.

roquefort · 24/11/2009 22:34

listentotaxman.com is good for doing these calculations.

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