What would be my take home as a Perm in uk please

[NowPermOutsideUK]

I ve been trying to understand the take home pay on a hypothetical 100K perm salary in London and was hoping someone could give me some indicators

I ve used the tax calculators but I cant seem to include some rental income in that calc

So the circumstances for keeping things simple are:

1) 50 K rental income after expenses and all deductions
2) 100K perm salary

Am i correct in thinking that the 100K after NI and income tax results in 40K?

I am grateful for your advice please

[NotAllThere]

First find an employment income calculator, then work out the tax on rental income. https://www.charcol.co.uk/guides/tax...ental%20income

Plug in 2021 figures.

[NowPermOutsideUK]

Thank you NAT - I have seen this calc before but it does not include employee NI / employer NI which makes a difference

[ladymuck]

As a perm, why would you care about employer NI?

[malvolio]

Thank you NAT - I have seen this calc before but it does not include employee NI / employer NI which makes a difference

Work out the net from the rental income. (although you have said that's £50k after all expenses and taxes).

Use an employment calculator to work out the net income from a £100k salary.

Add the two together.

Not hard, is it.

[NowPermOutsideUK]

On employer ni you are correct. That’s not important and I don’t need to worry about that

i know the tax on rental income and that uses up my tax free allowance and basic rate

if I use an employment tax calculator it always takes into account tax free allowance and basic rate which as I have said has already been used up

my question was if I am a higher rate tax payer (with no tax free allowance / basic rate) and I managed to find a 100k perm job how much of that 100k would go in tax. It looks to me like 60k of the 100k goes in tax leaving 40k from the 100k salary as take home pay from income and employee ni but I wanted to check if that was correct or not

[ChimpMaster]

Note that employment salary uses up the tax bands first. Rental income is submitted on Tax Returns and tax paid in arrears (but wait to see what the govt is going to introduce soon...!). So normally your salary tax will be PAYE and use up the personal allowance and the basic rate tax band. Rental income will be at 40% and some might even fall into the 45% bracket.

BUT it's more complicated because you lose all of your personal allowance if you earn over £125k, so in your case the rental income will also be taxed on the first £12,500. It's a complete farce and results in a 60% tax rate.

AND let's not forget s24 tax on your rentals. If you have mortgages then the mortgage interest can no longer be claimed as an expense and instead you get a 25% credit against the tax due. So as a higher rate tax payer you lose out massively on this.

If you're looking at perm jobs then consider joining a company that has a Salary Sacrifice scheme. Fortunately my new employer has this scheme in place and I will be throwing as much into my pension scheme as possible (up to £40k / year).

Interesting article here: Your salary taxed at 60 per cent — the six-figure curse | Financial Times (ft.com)

And useful calculator here: Rental income tax calculator – TaxScouts


Note: I am not an accountant or tax advisor. Heck, I'm not even a contractor any more.

[Lance]

question from a perm.
About a perm salary.

On a contractor forum....


Why isn't this in general?

[northernladuk]

question from a perm.
About a perm salary.

On a contractor forum....


Why isn't this in general?

Don't forget it's hypothetical and has other factors we don't really know about and am sure will trickle out later. Usual guff from this OP

[northernladuk]

I ve been trying to understand the take home pay on a hypothetical 100K perm salary in London and was hoping someone could give me some indicators

I ve used the tax calculators but I cant seem to include some rental income in that calc

So the circumstances for keeping things simple are:

1) 50 K rental income after expenses and all deductions
2) 100K perm salary

Am i correct in thinking that the 100K after NI and income tax results in 40K?

I am grateful for your advice please

Have you tried looking for calculators aimed at landlords that cover the rental income and adds the employment income. Like this?

https://www.icalculator.info/landlor...alculator.html

You aren't going to find a full blown PAYE calculator that covers every aspect possible