Can anybody help me please!!! I am trying to work out my partner's basic salary after tax. He gets paid £1716.16 every month before tax, he is on tax code 647L. Can anybody tell me how I work out the amount after tax. He works one in three weekends and gets service bonus for this so will this be classed as bonus/overtime, the calculations made in the I & E form should just be on his basic salary is that right? He gets different amounts each month depending on how many call outs he gets on his weekend.
Tracey yes its just on basic wage. In regards to bonus/overtime payments be very careful in adding these to your I & E. A lot depends whether or not they are "regular", for instance over 3 or 4 months of the year I can earn a lot of overtime (due to seasonal requirements) but for the remainder of the year I simply receive my "basic" wage. My IVA includes a 10% rule on overtime/bonus, whereby I am allowed to keep the first 10% of any overtime then I split the remainder 50/50 with my creditors.
Hopefully you will find that your chosen Company will ensure that you dont over-commit yourself with reliance on overtime/bonus but you do right to make sure its correct at the start.
Last edited by Pennyless on Sun Feb 21, 2010 10:34 am, edited 1 time in total.
I came into this world with nothing and still have most of it left!
Yes already passed I & E form through but doubting now what I have already put. Read a few posts on here and getting confused. My partner works 1 in 3 weekends on call, he gets paid to be on call then any jobs he does he gets paid for. But every weekend is different depending on how many jobs he gets. I think I will ring my IP firm and explain again. I think they should work it off the basic then any extra we get we will pay accordingly through the 10% or 50/50. Does that sound reasonable. Otherwise like you said we could be working off a wrong budget.
Tracey that sounds the best idea and very reasonable, otherwise later in your IVA you could find that the repayments will get hard to meet if you have over-stipulated/added in overtime and this dries up, which would not help either you or your creditors.
Unfortunately from what I have read on these forums not every IVA Company includes the "10% rule" and this can be very costly over 5 years. Personally if a Company did not have such provision I would move to one that does. I know you are still in the process of setting up your IVA but this is the time to make sure you are happy with the commitment you will be making...and if not, an extra few weeks wait whilst seeking better alternatives is time well spent.
Just for info, unfortunately I never came across the site before I started the IVA process and was just lucky enough to choose Melanie Giles as my IP.....therefore I count myself lucky that I have avoided many of the pitfalls that others have came across, as Melanie and her team go out of there way to explain every minute detail and ensure that the IVA is workable for both myself and my creditors.
Last edited by Pennyless on Sun Feb 21, 2010 10:57 am, edited 1 time in total.
I came into this world with nothing and still have most of it left!
To work out the amount of tax he pays the Tax code 647 means he can earn £6470 (Actual allowance this year is £6475) before tax is deducted.
So this figure would be divided by 12 if he is paid monthly (£539.58).
Tax is 20p in the pound up to £37,400 (£3116.67 per month) so he would pay 20% tax on the remainder of his basic salary £1176.58 = £235.32
Then 20% of anything over his basic salary up to £37400 (chance would be a fine thing I think)
This does not include National Insurance amounts
Hope this helps a little
When I was younger I did what I knew - now I know better I do better!
Tracy - your IP should always work on the basis of basic wages - never bring in overtime or extra hours as these many not be sustainable throughout the IVA.
You rightly point out that any extra monies will be captured under the 10%/50% calculations.
My pay is worked out on my basic, plus shift allowance and call outs, which do vary.
My monthly pay is after all my contributions are made, including pension contributions.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Can anybody help me please!!! I am trying to work out my partner's basic salary after tax. He gets paid £1716.16 every month before tax, he is on tax code 647L. Can anybody tell me how I work out the amount after tax. He works one in three weekends and gets service bonus for this so will this be classed as bonus/overtime, the calculations made in the I & E form should just be on his basic salary is that right? He gets different amounts each month depending on how many call outs he gets on his weekend.
Thanks.
Hey Tracey
Not sure how long ago you posted this question but I just thought I'd offer a helping hand since I recently had to do this for my own partner which drove me crazy. I got recommended this site by a friend which has been super useful. http://www.income-tax.co.uk/calculator/20400 I just put in your inquiry and it has shown the following:
Annual salary: £20,400
Tax paid per year: £1780
Take-home salary after tax: £1430
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
