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• # 86776
• Wed 21 Nov 2012 09:20 PM

Hi guys

Thought that I would run this past you -

A client of mine wants to pay an employee £200 a week (take home pay after tax).

I have worked out that the employer will need to pay £207.50 a week (after deducting £7.38 National Insurance Contributions),  leaving the employee £200.12

This is also the employees first job since April this year so they have their personal allowance to use before paying PAYE.

My question is, the employer wants to know what the employees annual salary will be.   Is there an easy way of calculating this?   Obviously £207.50 a week works out at  £10,764 annually, so at some point the employer will have to increase the weekly pay amount to ensure that after PAYE and NI, the employee is receiving £200 a week.

Not sure if I'm overthinking this, thanks in advance for  any help

Terri

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  Terri Homyard AICB CB.Cert PM.Dip (Based in Sheffield)
  Email me at terri@a1-bookkeeping.co.uk
  www.a1-bookkeeping.co.uk 

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• # 86846
• Sun 25 Nov 2012 02:43 PM

Hi Terri

I would work it on an annual basis and make the point that to start with they will be catching up on their personal allowances so the Gross will not need to be as high until they catch up however for the remainder of this tax year they will not catch up  as at £200 a week net they would need some 40 odd weeks and there are only about 20 weeks left this tax year (Approx)

Remember the Autum statement is due out in the next few weeks and they may increase the personal allowance which will have a breaing on the rquired net for the next tax year.

I hope this makes sense.

Kind regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
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