Help understanding Employers NI and salary breakdown.

[WTFH]

I got to my answer below by doing this (in simple layman's terms)...

Having already established the following figures...

a = 1.17903
b = -64.65


I then did (£10,400 - b)/a = £8,875.64.

Is that a dumbed down way of writing your method above?

I already have my answer, the above is just for my comprehension and as you know, every day's a school day!

That’s it. But you need to remember that if you increase e.g. your pension from 3.3% to 4%, then you need to change 1.17903 to 1.18603.

…and I’m not going to say that the figures are 100% accurate, but they may give you a reasonable approximation.

[Madmax86]

That’s it. But you need to remember that if you increase e.g. your pension from 3.3% to 4%, then you need to change 1.17903 to 1.18603.

…and I’m not going to say that the figures are 100% accurate, but they may give you a reasonable approximation.

Yes definitely.

I have also done a version where I define the pension as a hard number, not a % and that also works well, specially for scenarios investing a fixed amount into a SIPP.

Thanks a lot for your help.

[lucyclarityumbrella]

I like to simply call the calculation umbrella payroll voodoo! Much simpler explanation!

[lucyclarityumbrella]

I have also done a version where I define the pension as a hard number, not a % and that also works well, specially for scenarios investing a fixed amount into a SIPP.

Just make sure you know whether the umbrella is doing a salary sacrifice arrangement if that is how you are basing the calculations, the industry is flooded with different variants as to how to take the pension.

[eek]

Just make sure you know whether the umbrella is doing a salary sacrifice arrangement if that is how you are basing the calculations, the industry is flooded with different variants as to how to take the pension.

Tell me about it - think I have 6 variations at the moment ignoring the ones who do short cuts

[lucyclarityumbrella]

Tell me about it - think I have 6 variations at the moment ignoring the ones who do short cuts

I am genuinely not surprised!

[Madmax86]

Just make sure you know whether the umbrella is doing a salary sacrifice arrangement if that is how you are basing the calculations, the industry is flooded with different variants as to how to take the pension.

Hmmm that is an interesting point.

So with my current payslips including the one outlined in my original post, there is the pension contribution at £293.52 with employer's salary sacrifice saving of £26.24.

However, I have asked them on another occasion for an illustration of what it would look like if they paid £1,000 into my SIPP (If I opted out of the current workplace auto-enrolled pension) and this illustration has the £1,000 contribution but no salary sacrifice saving.

I haven't yet questioned them on this but is this what you are referring to?