How much tax does a perm pay?

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wobbegong replied

24 March 2011, 10:15
Originally posted by DeludedAussie View Post

Out of interest more then anything but assume a salary of 100K

They will pay 40% on earnings between 43K -> 100K

What about NI?

Aside from your personal allowance, the rates are

Basic rate: 20% £0-£37,400

Higher rate: 40% £37,401 - £150,000

Additional rate: 50% Over £150,000
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Churchill replied

24 March 2011, 10:00
Originally posted by DeludedAussie View Post

Out of interest more then anything but assume a salary of 100K

They will pay 40% on earnings between 43K -> 100K

What about NI?

JFGI!
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VectraMan replied

24 March 2011, 09:34
Employers' NI is 12.8% above £5500 ish IIRC, with no limit - I think. So that's another ~£12K in tax, although that's before gross salary so the employee doesn't really pay that (but if you're comparing to contracting you should include it).

So on the £112K cost to the employer of employing someone at £100K salary, ~£47K is tax, or 41%. I think.
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MrRobin replied

23 March 2011, 21:35
I can't remember exact thresholds (they are on HMRC site) but they would pay 11% from about £7k until £44k, and then 1% above that.

From April, it goes up to 12% and 2% respectively

I.e. About £4.5k in NI, rising to £5.5 from April, on a salary on £100k

All in all, about 35% tax including PAYE

Try The Salary Calculator - 2011 Tax Calculator

Last edited by MrRobin; 23 March 2011, 21:37.
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DeludedAussie replied

23 March 2011, 21:01
Originally posted by original PM View Post

about 11.6 but there are other rules

so 51.6% tax? no way
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original PM replied

23 March 2011, 20:57
about 11.6 but there are other rules
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DeludedAussie started a topic How much tax does a perm pay?

23 March 2011, 20:55
How much tax does a perm pay?

Out of interest more then anything but assume a salary of 100K

They will pay 40% on earnings between 43K -> 100K

What about NI?
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