Sunday, November 20, 2011

Ex student? How much for £300 per week take home?

How much Salary does a graduate have to earn to take home £300 a week?

Answer: Around £27,000 per annum

Rough estimate - including Student Loans Company (slc):

Assuming a nice round 60% net (tax + NI is approx 40%), we see...

£300 x 52 gives £15,600

Divide by .6 to gross up that figure gives you the higher gross of £26,000

£15,600 / 0.6 = £26,000

£90 * 12 = £1,080 (annual slc repayment on £26,000)

Estimate: £27,080

But 40% for tax & NI is wrong? But £90 per month slc is wrong?

These figures are a bit rough and ready. Feel free to substitute your own percentages.

A spreadsheet to help with the monthly repayment to slc can be found here

Note: Spreadsheet is in Open Document format (.ods).
Download LibreOffice to edit or view locally

You can view it directly in Googledocs here

Below is a preview image:

The Tax and National Insurance rate estimates are local to the United Kingdom, please adjust as appropriate for your local situation.

UK Zero Percent Tax threshold in 2014:

From April 2014 the personal tax threshold (level below which no income tax is payable) is estimated at £10,000

What this means for somebody earning £27,000 is that 17,000 of their salary is taxed at entry level tax rate of 20%.
Making Annual income tax liability of £3,400 (Monthly £283.33)

The earlier statement "tax + NI is approx 40%" overstates things a little. Being an employee on that sort of salary means paying 12% National Insurance (NI).

Update the spreadsheet to reflect the current picture and get a more accurate estimate.

The £90 monthly payment to your Student Loan is still payable, and is not affected by changes in Tax or NI rates.

No comments:

Post a Comment