The Salary Calculator

New! Two Jobs Salary Calculator

by Admin

I have finally been able to deliver something that has been on my “to-do” list for several years – a salary calculator for when you have two jobs at the same time. If you are considering taking on a second job to help make ends meet, or if you have two part-time jobs rather than one full-time job, it isn’t easy to work out what your take-home pay will be. If you’d like to try it out and see what a difference an extra job could make, head over to the Two Jobs Salary Calculator.

All the usual options are there, such as pension contributions, bonuses and overtime, to help you see all the details in one place. You can use the calculator without a tax code, or with a single tax code for both jobs, or with individual tax codes for each job if you have been given them by HMRC.

It can be quite complicated to work out the tax and other deductions for those who are working two jobs, so I hope this will be useful to some of you. It was also quite difficult to find a way to display all the options (like pension contributions from both jobs) without making it too hard to use. I hope I have succeeded, I look forward to hearing from people who have used it.

Tags: careers, HMRC, income tax, Jobs, national insurance, Pay As You Earn, pension, Pensions, second job, student loans, tax rates, The Salary Calculator, two jobs

New! Enhanced pension options

by Admin

I have been asked a number of times to add some options to the Pension calculations, and today I have done just that.

Auto-enrolment pensions have specific rules about how to calculate the amount which should be contributed – overtime and bonuses are included, for example, but the contribution is only on a percentage of the “Qualifying Earnings”. Qualifying Earnings are your employment income between a lower and upper threshold, which from 6th April 2019 will be £6,136 and £50,000 respectively.

Other pension types have more flexibility, which is why the Salary Calculator has been updated, and if you select an Employer, Salary Sacrifice or Personal pension, you can now choose whether to have contributions based on your whole salary or on your qualifying earnings, and whether or not to include overtime and bonuses in the calculations.

Why not head over to The Salary Calculator, click on the Pension tab and see whether these options might affect your take-home pay?

Tags: April 2019, auto-enrolment, Pay As You Earn, pension, Pensions, qualifying earnings, salary sacrifce, The Salary Calculator

Auto-enrolment pensions

by Admin

I’ve been dragging my feet on this one (sorry), but I have finally added an option to the Salary Calculator for auto-enrolment pensions, which employers are obliged to offer to eligible employees if there is not already an employer pension scheme. These pensions involve a percentage being deducted from your pay, but only on what you earn over a certain threshold (£6,032 for the tax year from April 2018). There is also an upper threshold, above which deductions are not taken – £46,350 for the April 2018 tax year.

To use the new option, enter your details in to The Salary Calculator. On the Pension tab, select the “Auto-enrolment” option and enter the percentage of your salary that you will be contributing. Click “Go!” to see the results.

Auto-enrolment pensions also require your employer to contribute to your pension, but I have not yet added this to The Salary Calculator – so enter only the percentage that you will be contributing (your employer’s contribution does not affect your take-home pay).

From 6th April 2018 the minimum amount employees are required to pay into their auto-enrolment pension increases from 1% of their pay to 3% (and from April 2019 it increases further to 5%). This can make quite a difference to your take-home pay – try it out on the Salary Calculator and see what a difference it makes!

Tags: income tax, Pay As You Earn, pension, pension scheme, Pensions, The Salary Calculator

Budget 2016

by Admin

Tomorrow, the Chancellor of the Exchequer will deliver his annual budget to the Houses of Parliament. We have already heard about some possible announcements (such as the introduction of a scheme to help people increase their savings), and we have been told that there will be no changes to pension tax relief (which looked likely, for a while).

From 6th April, the new tax year means changes to tax-free personal allowances, tax thresholds and the like. The Salary Calculator has been updated with the latest values so you can see what your payslip will look like from April onwards. The personal allowance has been increased to £11,000 per year, which will reduce the tax due for most people. There are changes to National Insurance this year, too – since it is no longer possible for a pension to be “contracted-out” (earning a reduction in NI contributions), those of you who had one of these pensions will be paying the full NI contributions from 6th April.

If you would like to see how these changes will affect you, head over to The Salary Calculator to see what difference it will make to your payslip!

Tags: April 2016, budget, income tax, national insurance, Pay As You Earn, pension, Pensions, personal allowance, tax rates, The Salary Calculator

2016 Tax rates available!

by Admin

The Salary Calculator has been updated with the latest tax rates, which take effect from 6th April 2016 – so you can now see how the changes will affect you. Just head over to The Salary Calculator – 2016 take home pay calculator, enter your details and remember to choose the “2016/17” tax year in the drop-down box.

The tax-free personal allowance has been increased by £400, which will reduce the amount of tax most people pay. However, from April 2016 those who have been paying into a pension scheme which is “contracted out” of the additional state pension will find that their National Insurance contributions go up. This is because from April it will no longer be possible to contract out of the pension, so the National Insurance reduction that this gave you no longer applies.

You can try out the 2015 and 2016 take home comparison calculator and see side-by-side how your payslip is likely to change in the new tax year.

Tags: April 2016, budget, HMRC, income tax, national insurance, Pay As You Earn, pension, Pensions, personal allowance, tax rates, The Salary Calculator