# paycheck deductions, withholdings



## perivale (Jan 3, 2008)

Hi,

I'm being offered a position in London for at £80K and for comparison purposes I want to estimate what my net take home would be - ie. I want to calculate all state insurance, retirement, etc deductions as well as some kind of income tax estimate for this level of income. I am single and have no children. and hoping to gawd i can find someone in london


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## kaz101 (Nov 29, 2007)

Hi Perivale, 

There are loads of tax calculators around but I think they all give different values  Some depend on your tax code (which you won't have until you are in the UK). 

Here are some of the others but I'm not sure that any of them are that accurate!

The Salary Calculator - Take-Home
http://www.pru.co.uk/home/calculator/income_tax/# 

Regards,
Karen


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## Gerry Pridham (Jan 9, 2008)

Hi Kaz,
That's a great web link to the salary tax calculator. I've saved it to demonstrate to my contractor colleagues how much they pay in tax if they are not indepedent contractors


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## kaz101 (Nov 29, 2007)

Hi Gerry,

Ah but there are downsides to being independent contractors in the UK too, especially in IT (IR35 and recent changes to small businesses). 

Regards,
Karen


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## Gerry Pridham (Jan 9, 2008)

Kaz,

I didn't see any downside in 7 years. We never paid over 20% in income tax. We were never subject to IR35 because we arranged our company affairs to ensure we never were. It's true, a lot of contractors just treat it as if it were a job, but we treated it as a business.


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## Bevdeforges (Nov 16, 2007)

One "down side" to working as a contractor is that all the tax administration responsibility falls on you. For some people, that's no problem. For those who don't like dealing with the paperwork, it's a big negative.

Contractors get paid more than employees for the simple reason that it's cheaper that way for the employer. No need to file payroll reports and pay their share of payroll taxes and social insurances. That's all shoved off onto the contractors, and they deserve to be paid for taking on the extra work themselves.
Cheers,
Bev


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## skshetty (Oct 27, 2008)

*UK Salary structure*

Hello,

I am a part of a group working on a project to develop the labor salary structure for UK. We are working on this project as part of our coursework in Supply Chain Relations at North Carolina State University. This is for an academic study only.

Can you please let me know the various components in a typical UK pay check. We have the US model and want to know the corresponding components in UK for various components like the Base salary, Bonus, Social Security and Disability, Federal Unemployment tax, State Unemployment insurance, workers compensation, health Insurance, Pension, Retirement/401k etc.

I would be very thankful if you can provide me some information in this regard or point me to someone who can be of help.

Thanks in advance for your help.

Thanks & Regards,
Suraj Kumar Shetty,
Masters Student
NC State University
Raleigh, NC, USA


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