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Pro-rata tax question watch

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    Hey,

    I have received an offer from a boutique IBD firm, and it states:

    Your Base Salary will be £48,000 per annum less deductions for income tax and National Insurance contributions (the “Base Salary”). Your Base Salary will be calculated on a pro-rated basis for the duration of the Fixed Term and will be paid to you monthly in arrears on or about the last working day of each month directly into your bank or building society account by direct deposit.

    Given that I am working for FOURTEEN weeks, what will be my take-home pay?

    Is it simply (48000/52)*14 (subject to standard income tax and NIC)

    Or is it (48000{subject to standard income tax and NIC}/52)*14 (Subject to standard income tax and NIC)?
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    Assuming this is your only job for the tax year, you’ll be entitled to a huge refund from the tax man for the tax deductions taken out of your salary. You may have to wait till the tax year is over to claim it, or expect the HMRC letter in the post
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    (Original post by BusMan21)
    Assuming this is your only job for the tax year, you’ll be entitled to a huge refund from the tax man for the tax deductions taken out of your salary. You may have to wait till the tax year is over to claim it, or expect the HMRC letter in the post
    Looks like this job would take them over the tax threshold.. nonetheless, PAYE would result in a new tax code being issued within one pay run, and a refund being applied on the next pay run.

    Tax refunds rarely happen anymore for PAYE employees.
 
 
 
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