I am Salary+commission based earnings - how do I work out what my TOTAL monthly deduction rate is?

Question

I am Salary @ 11K plus commission based (mainly earning via commission) - I need to know what Total % of my Monthly earnings I should expect of combined TAX and National Insurance to be deducted. looking through my last couple of payslips seems to be 27% Total.

Answer 1

Your total net income i.e what you receive after all deductions on a monthly basis depends upon your employment status--self employed or PAYE? For an employee this net figure is after deductions of income tax--at your highest rate maximum 40% after personal allowances. You should check that you have the correct tax code being applied to your salary--if in doubt speak to the payroll department. Deductions are also made for National Insurance contributions and there may be further deductions for pension contributions into your employers scheme? Looking at your numbers I suspect that 27% total may actually be too small--my rule of thumb for an employed  basic rate tax payer is around 33% deductions from gross pay. Check your payslip carefully and make sure you know what you are paying away--some will be mandatory but some may be optional?

Disclaimer:

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Answer 2

The Google Search link below, gets you lots of tax calculators etc.

http://www.google.com/search?sourceid=na...

Answer 3

seems about right    Will vary of course cause monthly amount gross will vary//  Tax @ %  plus   NHI,     You might experience  big differences during the year   of the commission  factor..Only real difference will be if commission goes high and pushes you into the next tax bracket ...