What would the net pay be?
Discussion
Try This:
www.i-resign.com/uk/financialcentre/tax_calculator.asp
You were close, net take home: £1,151.63
>> Edited by Hates_ on Thursday 5th June 14:16
www.i-resign.com/uk/financialcentre/tax_calculator.asp
You were close, net take home: £1,151.63
>> Edited by Hates_ on Thursday 5th June 14:16
Hoping this is the right part of the forum to ask this in ...
If someone is paid £18,500 a year, what would their net pay be?
I've done a rough calculation and worked it out to be about £1170 per month.
Is there any money/earnings site on the net you can chuck the figures into and it calculates a rough answer?
Also, when someone is taxed on a company car, what exactly so they tax you on - initial cost? BHP? And over how many years, all at once?
Do they tax you on the insurance, tax and servicing you'd save if it was your own car and you were having to foot the bill for those things yourself?
Any help appreciated
Thanks
If someone is paid £18,500 a year, what would their net pay be?
I've done a rough calculation and worked it out to be about £1170 per month.
Is there any money/earnings site on the net you can chuck the figures into and it calculates a rough answer?
Also, when someone is taxed on a company car, what exactly so they tax you on - initial cost? BHP? And over how many years, all at once?
Do they tax you on the insurance, tax and servicing you'd save if it was your own car and you were having to foot the bill for those things yourself?
Any help appreciated
Thanks
On the car front, I'm no expert but here goes.
You need to know the list price and the CO2 banding
this then gives you the 'benefit in kind' value
e.g 10K car and CO2 band of 18% means you will pay tax (at your highest band) on 1800gbp.
It will actually be taken of your personal tax allowance (your tax code will go down).
I may have some of this wrong, so don't take it as gospel.
I am sure there are tax calculators for company cars on the web, do a google search, or ask if you need anything clarifying.
Sparks
You need to know the list price and the CO2 banding
this then gives you the 'benefit in kind' value
e.g 10K car and CO2 band of 18% means you will pay tax (at your highest band) on 1800gbp.
It will actually be taken of your personal tax allowance (your tax code will go down).
I may have some of this wrong, so don't take it as gospel.
I am sure there are tax calculators for company cars on the web, do a google search, or ask if you need anything clarifying.
Sparks
Sparks - essentially correct. The adjustment to the personal tax allowance (ie the PAYE coding)by the Benefit in Kind value of a company car is usually enough to turn it into a negative amount. The Inland Revenue, in their usual illogical way, denote a negative tax allowance by prefixing it with the letter "K"!!!
For example, the standard personal allowance for 2003/04 is £4,615. In PAYE Coding language, this is called 461L. If you had a company car, your allowance might go negative and end up something like -£2,905. This would be shown by the Revenue as a coding of K291.
Don't forget the additional Benefit in Kind which arises when the company pays for your fuel. This is now also based on the CO2 rating of the vehicle applied to a standard figure of £14,400.
Blindingly obvious really.
For example, the standard personal allowance for 2003/04 is £4,615. In PAYE Coding language, this is called 461L. If you had a company car, your allowance might go negative and end up something like -£2,905. This would be shown by the Revenue as a coding of K291.
Don't forget the additional Benefit in Kind which arises when the company pays for your fuel. This is now also based on the CO2 rating of the vehicle applied to a standard figure of £14,400.
Blindingly obvious really.
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