The Student Room Group

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

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.
(edited 7 months ago)
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.


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)
(edited 7 months ago)
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.
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
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
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.
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
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.
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:
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
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."
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:


Your pension doesn’t get vacated if you leave a company, it should still be managed in a large pension fund & accumulate in value over years. Pensions are like snowballs, you always start small but the growth compounds. The later you start the more you have to put in for equivalent value.

If you pay in 5% your employer is legally obligated to pay 3% & may pay more. Even if put in a little bit it gets you going- and it reduces your taxable income.
(edited 7 months ago)
Reply 13
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:


This is wise, never tie yourself down like that.
(edited 7 months ago)

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