Net income in the UK for an employee
Discussion
I only know what's left in Germany after taxes and social insurance.
Example for an unmarried without kids:
* for building up the east
** church members only
So which deductions are made in the UK? IIRC it was less in total than in Germany.
Example for an unmarried without kids:
| gross wage | 100000.00€ |
|---|---|
| pension | 6268.44€ |
| unemployment ins | 1323.00€ |
| health ins @ 13.8 | 3334.44€ |
| care ins | 470.16€ |
| solidarity charge* | 1789.56€ |
| church tax** | 0.00€ |
| tax | 32538.00€ |
| net | 54276.40€ |
* for building up the east
** church members only
So which deductions are made in the UK? IIRC it was less in total than in Germany.
£67793.96 (100,000 Euro)
Netts down to
£45676.39
Thats £22,117.57 (32,627.03 Euro) in Tax and National Insurance
Which is frankly criminal.
Obviously the above is straight calculation, no tax breaks etc taken advantage of.
Breaks down thus:
10% Tax Rate £223
22% Tax Rate £7121.40
40% Tax Rate £11.185.98
NI £3587.19
Thats what the employee pays. On top of all that tax the employer pays £8008.83 in Employers NI
Netts down to
£45676.39
Thats £22,117.57 (32,627.03 Euro) in Tax and National Insurance
Which is frankly criminal.
Obviously the above is straight calculation, no tax breaks etc taken advantage of.
Breaks down thus:
10% Tax Rate £223
22% Tax Rate £7121.40
40% Tax Rate £11.185.98
NI £3587.19
Thats what the employee pays. On top of all that tax the employer pays £8008.83 in Employers NI
Edited by Plotloss on Wednesday 29th August 22:12
£67739
Personal Allowance £9000
£58739 less Social security contributions apx £3000
£55739 less tax @ 20% (11147)
£44591 + £9000 = NET £53591 which =
Edited to say this is in the channel islands. Things are changing a little next year.
Personal Allowance £9000
£58739 less Social security contributions apx £3000
£55739 less tax @ 20% (11147)
£44591 + £9000 = NET £53591 which =
Edited to say this is in the channel islands. Things are changing a little next year.
Edited by ACEparts_com on Wednesday 29th August 22:26
Plotloss said:
£67793.96 (100,000 Euro)
Netts down to
£45676.39
Thats £22,117.57 (32,627.03 Euro) in Tax and National Insurance
Which is frankly criminal.
You tell me! The calculations are comparable when yours includes everything that is deducted automatically. The employer's share is not included in my calculation. Council tax is significantly less in DE though. Lowest tax rate is 15% (starting from 7,664EUR), and highest is 42% (starting from 52,152EUR).Netts down to
£45676.39
Thats £22,117.57 (32,627.03 Euro) in Tax and National Insurance
Which is frankly criminal.
theboss said:
I'd be interested to see the same German tax calculation based on a married couple (1 working) and kids?
Here you are, one child, shared household:| gross wage | 100000.00€ |
|---|---|
| pension | 6268.44€ |
| unemployment ins | 1323.00€ |
| health ins @ 13.8 | 3334.44€ |
| care ins | 363.36€ |
| solidarity charge* | 1199.28€ |
| church tax** | 0.00€ |
| tax | 24079.92€ |
| net | 63431.56€ |
The discounts for marriage/children is a fixed amount, so the percentage looks better when you earn less.
Bodo said:
ACEparts_com said:
£44591 + £9000 = NET £53591 which =
Edited to say this is in the channel islands. Things are changing a little next year.
swine hound Edited to say this is in the channel islands. Things are changing a little next year.
sounds like a target!My friend in Stuttgart had to sign a form to say he didn't go to church to get out of the 8% Church Tax there (but think it is 8% of income tax, not gross ?).
Also German Insurance Tax = 16% (plus fire service levy) compared to our 5%.
If you are on €100k in the UK I would think you would be doing something to reduce your tax bill. Taking some salary as bonus etc.
My Uk tax bill is nearly at the Channel Islands level, but then I am special (or Contract Scrum as it sometimes known).
Also German Insurance Tax = 16% (plus fire service levy) compared to our 5%.
If you are on €100k in the UK I would think you would be doing something to reduce your tax bill. Taking some salary as bonus etc.
My Uk tax bill is nearly at the Channel Islands level, but then I am special (or Contract Scrum as it sometimes known).
Noger said:
If you are on €100k in the UK I would think you would be doing something to reduce your tax bill. Taking some salary as bonus etc.
This view seems to be a pretty frequent one, but I don't know how it got started, or why it persists.Bonuses in the UK are taxed exactly the same as salary. Whether you are UK resident, domiciled, or just visiting, you still pay 41% on every penny of it.
There have, very occasionally, been screw-ups in the tax laws (I call them that as the consequences are often unanticipated) that let people, for example, invest in UK film, and defer tax until later, but as soon as they are seen as being a tax dodge (rather than an incentive to back films), they get closed down.
Most of my colleagues get the majority of their pay as bonus. Whether it is cash, options, stock, or deferred stock, you stil pay the full whack if you receive it in the UK.
The real breaks, that may be the cause of confusion, are on investment returns. If you are a foreigner living here, you can invest your taxed income offshore, and not be taxed on what you make on that. You also get breaks if you invest in a company via leverage, in that you can offset interest payments against tax on yor holding. Again, though, this is investment returns, not salary. Even this looks likely to be stopped, as people are using it a bit more than was anticipated.
The daily mail view that "high fliers" pay less tax than middle income earners is just their propaganda. The wealthy pay more tax on their income as a percentage, and in absolute numbers of pounds, than people earning less.
Didn't think you paid NIC on a one-off bonus ? Plus I was thinking about Salary/Bonus Sacrifice as well. OK, not a lot of difference, but approaching this salary your employer should at least be considering some form of tax avoidance.
And there were some, admittedly not entirely kosher, bonus schemes involving being paid in foreign loans IIRC. I know a few people who did this.
And there were some, admittedly not entirely kosher, bonus schemes involving being paid in foreign loans IIRC. I know a few people who did this.
Noger said:
Didn't think you paid NIC on a one-off bonus ? Plus I was thinking about Salary/Bonus Sacrifice as well. OK, not a lot of difference, but approaching this salary your employer should at least be considering some form of tax avoidance.
And there were some, admittedly not entirely kosher, bonus schemes involving being paid in foreign loans IIRC. I know a few people who did this.
Nope, NI still paid on the bonus. Remember, you only pay 1% over something like 30k, but there is no ceiling on what it is paid on.And there were some, admittedly not entirely kosher, bonus schemes involving being paid in foreign loans IIRC. I know a few people who did this.
And as there are no legal ways to reduce your income tax, employers most definitely are not looking to do it for you. Colleagues who have had a bonus with seven figures have still paid the full amount.
Here's the link to an excellent site that tells you what you would need net in the UK
http://www.ir35calc.co.uk/TargetIncomeCalculator.a...
http://www.ir35calc.co.uk/TargetIncomeCalculator.a...
There's always salary sacrifice for pension contributions though (in fact pension contributions generally have tax advantages of course). Advantageous for employers too. Also I seem to remember that nursery vouchers have some tax advantages (obviously you need pre-school kids....). In some companies employees can also sometimes use HMRC approved share purchase schemes which may be able to use capital gains taper relief.
Disclaimer: Not an accountant, just an employee.
Disclaimer: Not an accountant, just an employee.
I don't earn what the original poster stated, but because I'm on private health care in Germany, I pull in a very similar salary to what he said, net.
Yes, private health care, if you're single ends up being cheaper in Germany than staying public, presumably if you're below a certain age.
I don't know what else could account for it....
Yes, private health care, if you're single ends up being cheaper in Germany than staying public, presumably if you're below a certain age.
I don't know what else could account for it....
saves me and mrs sayer £2000 a year.Gassing Station | Business | Top of Page | What's New | My Stuff