How much would tax and national insurance contribute and how much would I take away

Original post by Mohammed_80

If I were to make £2100 or let’s say £2200 for a month how much of that money would be taken away by tax and national insurance.

Depends on pension contributions as well but there are online calculators that can calculate the everything.

Original post by Mohammed_80

If I were to make £2100 or let’s say £2200 for a month how much of that money would be taken away by tax and national insurance.

Google listentotaxman - all one word. Thats a very useful online calculator that shows a full breakdown, including student loan repayments, any pension payments etc.

Reply 4

username5955039

OP

Original post by mnot

Depends on pension contributions as well but there are online calculators that can calculate the everything.

I don’t pay and opted out towards pension contributions

Reply 5

username5955039

OP

Original post by bamtutor

For tax you can earn 12570 pa. Anything above that is taxed at 20%, so for 2200 pm you would pay about £230 pm. NI is 12%, so about £138 pm. So you would take home 2200-368=1832.
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2023-to-2024#:~:text=The%20standard%20employee%20personal%20allowance,%C2%A312%2C570%20per%20year

https://www.gov.uk/national-insurance/how-much-you-pay

If you are just going to be earning this for one month only,you would pay no tax, but you would pay NI (although the tax may be taken out and you would need to claim it back)

Ah awesome yeah I’m just considering the Christmas overtime at my work place and I have a specific figure I’d like to target to earn and take away if anything it’ll be to cover December/January pay cycle

Reply 6

martin7

Original post by Mohammed_80

I don’t pay and opted out towards pension contributions

You asked your employer to reduce your remuneration? Wow.

I assume you're being auto-enrolled into a pension, and you've decided to opt out. Unless the deduction for your pension contribution is putting you in financial difficulties, you should pay into a pension. If you're paying into a pension via auto-enrolment, then so is your employer. If you opt out, then you stop paying into a pension. But your employer stops paying too. This is basically free money that you're giving up -- albeit free money that you won't see the results of until you retire.

Reply 7

Admit-One

Just to note that it’s daft to completely opt out of pension contributions unless you’re making some alternative arrangements. As above, it’s free money.

Reply 8

Quady

Original post by Mohammed_80

I don’t pay and opted out towards pension contributions

Smart move, you can use the overtime cash to invest it yourself.

Reply 9

username5955039

OP

Original post by martin7

You asked your employer to reduce your remuneration? Wow.

I assume you're being auto-enrolled into a pension, and you've decided to opt out. Unless the deduction for your pension contribution is putting you in financial difficulties, you should pay into a pension. If you're paying into a pension via auto-enrolment, then so is your employer. If you opt out, then you stop paying into a pension. But your employer stops paying too. This is basically free money that you're giving up -- albeit free money that you won't see the results of until you retire.

Hi Martin it’s not as though I’ll be committing to the same company for the next 43 years of my life :rolleyes:

Reply 10

Admit-One

Original post by Mohammed_80

Hi Martin it’s not as though I’ll be committing to the same company for the next 43 years of my life :rolleyes:

It’s not linked to the employer itself. The funds can be transferred from one pension provider to another. If you can’t be bothered then you can keep it where it is. I’ve got three private pensions so far and I’ll be working for a few decades yet.

Reply 11

martin7

Original post by Mohammed_80

Hi Martin it’s not as though I’ll be committing to the same company for the next 43 years of my life :rolleyes:

No one would take out a pension if it meant that changing employer meant you'd lose your pension. It's perfectly normal to have pension funds from multiple employers. My dad, who is retired, receives his state pension, plus pensions from four other schemes relating to different jobs he held in the past.

The time to get a pension in place is when you're young. It sounds like whatever you might have been saving (plus your employer's contribution) will have 43 years of investment returns by the time you retire.

It might be worth you looking at Money Helper's page on auto-enrolment at https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/automatic-enrolment-an-introduction

"You can opt out of your employer’s workplace pension scheme after you’ve been enrolled. But if you do, you’ll lose out on your employer’s contribution to your pension, as well as the government’s contribution in the form of tax relief."

Also: "The contribution your employer makes to your pension is part of your overall employment package. So opting out is like turning down pay."

Reply 12

mnot