Are my calculations correct

[Crystalmazes]

Just wanting to work out net monthly salary. Gross salary of 105k plus allowance of 6k. Bonus is 13% of the 105k but I could get lower bonus % depending on my performance. I am planning to salary sacrifice 6% into pension so I do not go over 100k mark.

Would appreciate if anyone can verify sums below.

1. Total Earnings:

• Salary: £105,000
• Allowance: £6,000
• Total Earnings: £111,000

2. Salary Sacrifice for Pension:

• 6% of £105,000 = £6,300
• Adjusted Salary after salary sacrifice: £105,000 - £6,300 = £98,700

3. Income Tax Calculation:

• Taxable Income: £98,700 + £6,000 ( allowance) - £12,570 = £92,130
• Tax Breakdown:
• Basic Rate (20%): £50,270 - £12,570 = £37,700 taxed at 20% = £7,540
• Higher Rate (40%): £92,130 - £50,270 = £41,860 taxed at 40% = £16,744
• Total Income Tax: £7,540 + £16,744 = £24,284

4. National Insurance Contributions (NICs):

• NICs Calculation:
• 12% on £50,270 - £12,570 = £37,700 taxed at 12% = £4,524
• 2% on £98,700 - £50,270 = £48,430 taxed at 2% = £968.60
• Total NICs: £4,524 + £968.60 = £5,492.60

5. Total Deductions:

• Income Tax: £24,284
• NICs: £5,492.60
• Pension Contribution: £6,300
• Total Deductions: £24,284 + £5,492.60 + £6,300 = £36,076.60

6. Net Annual Pay:

• Total Earnings: £111,000 - Total Deductions: £36,076.60 = £74,923.40
• Monthly Net Pay: £74,923.40 / 12 = £6,243.62

I would have thought that someone earning £105k would be able to work that out for themselves.

Which is what I have done but wanted a check if my calculations are correct

Don’t be “that” dick!

Use this; www.thesalarycalculator.co.uk/salary.php

What is the allowance and how is it not taxed? Those figures seem high in terms of net pay but I suspect to do with how the allowance is treated.

Your NI threshold isn't correct I don't think (the lower earnings limit isn't the same as the personal tax allowance) and you haven't accounted for the reduction of the personal allowance over 100k (but this does depending on how the allowance is treated).

I have an allowance as part of my package and it’s taxed just the same as my basic pay.

Yes, do this. I’d also check in the allowance, I imagine it form part of your taxable pay so you may want to contribute a bit more to your pension.,

Why don't you get an accountant. It won't cost that much.

Yep what's the allowance for? Mostly, they are taxable.so will just be added to your net income.
Same for the bonus - I assume you haven't included as not guaranteed but it will be counted as income which could be an issue if you are trying to keep below the threshold for tax free childcare.

I'm an accountant and I still just shove it into the salary calculator...

Same!

Yeah the allowance is taxable. If I salary sacrifice 10% into pension that will save full personal allowance I think?

Thanks I have not accounted for allowance your right.

Any idea how to get round not knowing how much bonus I will get? Can I keep gross amount in SIPP after getting bonus paid so I protect personal allowance?

You need salary sacrifice to get the gross + allowance down to £100k in order not to lose personal allowance.

You'd then need to put all of the bonus into pension as well.
If you can't do this via salary sacrifice you can do it as a personal pension contribution, although you then suffer the NI.

But can I not make a gross bonus contribution into SIPP? That way my Personal allowance will be restored?

Most people on 105k jobs are professionals in important jobs that are in the habit of getting calculations checked whether you know they are right or not.

monthly take home seems to be 6k from calculations but is that accurate

I use listentotaxman.co.uk figure it out

That's a horrid assumption that only people good with numbers are able to be high earners. There's plenty of creative types who earn way more but don't have any clue about tax.

I just get them to pay bonus straight into pension if it tips me over the next tax bracket which it will.

You would have to put your bonus into your pension as a lump sum then tax will be recalculated at the end of the year and any excess refunded or sometimes used to reduce next year.

I always calculate it myself then stuck it into a salary calculator too. It's easy to make a mistake.

🙄To everyone earning decent money having to be good with numbers.