Minimum Wage

[nosubstitute]

Does anyone know what someone would earn net a month if they did 40 hours a week on minimum wage? Would they pay any tax?

Thanks

[anonymous-user]

yes, you would pay tax, everyone pays tax. It's what, £6.03 per hour now isn't it? So times that by 40, then subtract your income tax i think, and that should give you an idea

[gp1699]

if you get paid less than 7229 per year you dont pay income tax

[anonymous-user]

gp1699 said:

if you get paid less than 7229 per year you dont pay income tax

Fair comment, although if you are over 21 then minimum wage is over 12k a year now. I think the only people who will earn that low a wage, are 16 year olds, but i stand to be corrected

[Mr Sparkle]

Government website says...

[sportka1]

you would get around £241.20 a week at 40 hours on nmw, you would pay aprox £20 a week in tax
you can also work less hours and claim working tax credits
for example
i have a 30 hour a week job paying nmw(yes im always skint but i can pay my bills)
i earn £182.40
minus tax £ 7.60
minus NI £ 5.22
take home pay £169.58

my working tax credit is £55 a week

total take home pay per week £169.58+£55= £ 224.58

working 40 hours per week at nmw(£6.08ph)=£243.20
minus tax of (worked out by taking the tax i pay on £182.40pw and adding the tax you would pay on the extra £60.80pw@20% aprox) £19.76
minus NI of aprox £11

take home pay £ 212.44
now the working tax credit would give you some extra per week,but it depends on your circumstances etc,and i do know a friend who works full time on nmw and he was amazed when i told him i got £55 a week tax credits,he gets £25 a week

[Zwolf]

Depends upon age, but at most for a person over 21, it's £6.08 per hour (from here).

Currently, you can earn £7,475 before Income Tax becomes applicable at 20%. As of April 2012, that rises to £8,105.

National Insurance kicks in at 12% above £102 per week currently, rising to £107pw from April 2012, so assuming a 40 hour working week for a 21+ employee:

40 x £6.08 = £243.20 gross per week x 52 = £12,646.40 pa

For 2012-13:
£4,541.40 is taxable at 20% = £908.28 Income Tax.
£7,082.40 is subject to NI at 12% = £849.89 National Insurance

Net minimum pay for a 21+ adult is therefore £10,888.23 pa / £209.39 pw

[CoolHands]

sportka1 said:

my working tax credit is £55 a week

What's that st?

Should be: you want it, you earn it. End of

[66comanche]

CoolHands said:

sportka1 said:

my working tax credit is £55 a week

What's that st?

Should be: you want it, you earn it. End of

At least he's working, unlike many that can't be arsed. So the choice is more: you want it, you sit on JSA and let it come to you.

[monkey gland]

sportka1 said:

you would get around £241.20 a week at 40 hours on nmw, you would pay aprox £20 a week in tax
you can also work less hours and claim working tax credits
for example
i have a 30 hour a week job paying nmw(yes im always skint but i can pay my bills)
i earn £182.40
minus tax £ 7.60
minus NI £ 5.22
take home pay £169.58

my working tax credit is £55 a week

total take home pay per week £169.58+£55= £ 224.58

working 40 hours per week at nmw(£6.08ph)=£243.20
minus tax of (worked out by taking the tax i pay on £182.40pw and adding the tax you would pay on the extra £60.80pw@20% aprox) £19.76
minus NI of aprox £11

take home pay £ 212.44
now the working tax credit would give you some extra per week,but it depends on your circumstances etc,and i do know a friend who works full time on nmw and he was amazed when i told him i got £55 a week tax credits,he gets £25 a week

Interesting, so the government gives you a weekly stipend enabling you to be better off working 30 hours than if you worked 40.

Mindboggling.

[Zwolf]

CoolHands said:

sportka1 said:

my working tax credit is £55 a week

What's that st?

Should be: you want it, you earn it. End of

Without the government making the dispensation for low paid workers, many such jobs may not be able to exist, so instead there would be more unemployed.

Companies could pay it instead of the taxpayer you say, in which case you'd pay higher prices for their goods out of your net pay, so that would cost you - the indignant taxpayer - more.

Jobseekers' Allowance is another tenner or so a week. I'd rather someone was working and contributing to the economy, even if they do get a bit of state assistance, than they sit on their arses relying on it wholly.

[sportka1]

CoolHands said:

sportka1 said:

my working tax credit is £55 a week

What's that st?

Should be: you want it, you earn it. End of

ok well i feel i have earnt it tbh, i left school and went into full time work at 16,before that i worked part time from when i was 13,i never was unemployed,sick etc so never had need to claim any help, i was laid off my last job and was unemployed for a while and willing to take any job,i took the job i have rather than be on the dole.
i payed my way and now i get help back because i was willing to get up of my ass and work any hours i can at any money i can get rather than sit at home on the dole
what would you rather i do, sit on my ass in the house and claim all the benifits i can or work when i can for what i can get?(hint sitting at home would get me more money)

[FamilyDub]

Use This Salary Calculator to work it out.

Can add tax codes, etc it's really useful.

[Charlie Foxtrot]

Slightly off topic, do you actually get paid for 40 hours? I've never worked anywhere that pays 40 hours, always 37.5. That's less 5 half hour lunch breaks.

I like paying too much tax, because it means I get a tax rebate and thats sort of free extra money.

[CoolHands]

sportka1 said:

i payed

Should've tried harder at school, then you wouldn't need handouts

[Mobile Chicane]

CoolHands said:

sportka1 said:

i payed

Should've tried harder at school, then you wouldn't need handouts

Really?

There are all manner of PHers in pretty grim circumstances.

I wouldn't be so quick to judge...

[West4x4]

Who gets tax credits? seams a bit weird to take money off you and then give some back just up the tax threshold and you would need to bother with them and no doubt save a fortune on paper work or is that to simple for the government?

[carmadgaz]

Charlie Foxtrot said:

Slightly off topic, do you actually get paid for 40 hours? I've never worked anywhere that pays 40 hours, always 37.5. That's less 5 half hour lunch breaks.

I like paying too much tax, because it means I get a tax rebate and thats sort of free extra money.

Yep 0830 - 1700 with half hour for lunch.

[pthelazyjourno]

CoolHands said:

Should've tried harder at school, then you wouldn't need handouts

What a thoroughly unpleasant person you appear to be.

Pretty amazing that somebody would employ you, really.

[BMR]

The thing I don't understand about tax credits is that if you're like me, a young, single person with no children and you don't work at least 30hrs per week you don't qualify.

Because of my last employer going into liquidation i find myself in a situation where I am officially contracted to 12 hours per week but work more like 30, so not sure if I'd be eligible.