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Sam, Accountant
Category: Tax
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# I am a UK doctor in the NHS who earns 3509.50 per month before

### Resolved Question:

I am a UK doctor in the NHS who earns 3509.50 per month before tax with 40% PAYE
Deductions below
PAYE:491.4
NI:299.54
9.3% pension: 217.59
Student loan: 189
Monthly pay pat tax: 2311.44
1) after the change in tax brackets next month I will be in the 20% tax bracket what will be my take home pay with deductions taken into account
2) if I work locums at 45 pounds per hour for 10 hour shifts on top of my above income how many will I have to work to increase my salary taken into account I will then be in the 40% tax bracket
3) if I work two of the locum shifts taking into account deductions and the higher rate of tax what will be my take home pay
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
You are correct, with an income of GBP 31514 and a Personal Allowance of 10600 you are within the 20% tax bracket which is from 1 - 31865. Your income tax would be 6302. You NI contribution would be of the order of 79 per month. Your student loan will be recovered from you salary. Your pension contribution will be allowable for tax.
So 3510 - 48 = 3462 - 515 [tax] - 79 [ni] = 2920 per month take home pay.
Please expand on 2. and 3. in your question, I do not understand what you mean by 'how many will I have to work to increase my salary taken into account I will then be in the 40% tax bracket'
Customer: replied 1 year ago.
With regards ***** ***** my income is 42,114 per year, not 31514 or is this my income taking into account the tax allowance
Also can I have the figure with my pension deduction added.
With regards ***** ***** 2 and 3. If I work a locum shift I will push myself into the 40% bracket so may potentially earn less than if I had not and stayed in the 20% bracket. Therefore who many shifts at 450 per shift will I need so I do not earn less than if I'd stayed in the 20% bracket
Also will my student loan deduction remain the same/ why has my NI contribution reduced so much?
Thanks
Expert:  bigduckontax replied 1 year ago.
Your personall Allowance o 10600 for 15/16 has been assumed.
According to the Gov UK web site your NI deduction is of the order of 12%, GBP 341 per month. I inadvertently used the weekly rate.
If your pension contribution is excluded you would pay some 10 quid exyra tax per month.
31865 -31514 = 351, giving you very little latitude within the 20% tax bracket. That gives you about 7 hours work in the whole tax year.
Student loan repayments depends upon which plan you are on; see here for full details:
http://www.sfengland.slc.co.uk/media/862137/sfe_terms_and_conditions_1516_d.pdf
Expert:  Sam replied 1 year ago.

Hi

Perhaps I can advise further on this matter

AS things currently stand your annual income is £42114 - so you are right - if you remain with this as your sole income then you are going to remain a 20% taxpayer - So new position from 6th April will with the annual tax free amount £10600 (currently £10,000)

Gross pay Monthly £3509.50

Less Tax £481.72

NI £314.43

Pension cont £217.59

Student Loan £169

Take home pay £2326.76

1) after the change in tax brackets next month I will be in the 20% tax bracket nt

As shown above

2) if I work locums at 45 pounds per hour for 10 hour shifts on top of my above income how many will I have to work to increase my salary taken into account I will then be in the 40% tax bracket

If you work an extra 10 hours a month which is an additional £450 then as your annual income is £42114 less pension contributions so £39503 - then you can earn a further £2883 a year before breaching the 40% tax position - (which amounts to £240 a month) so of this £450 the first £240 at 20% = £48 then £210 at 40% = £84 - so from £450 you will left with £318

And as it will not be paid from your main payroll (but as a secondary income possibly even from another trust) it will actually only suffer 20% tax - and NO NI deductions and no student loan deductions so adjustments will need to be made by HMRC at the end of each tax year - so you will need to complete a self assessment tax return (s

(So the tax as advised above on the £450 income - no further NI but an additional £40 student loan payments per month)

3) if I work two of the locum shifts taking into account deductions and the higher rate of tax what will be my take home pay

Please advise if this is per month and how many hours per shifts

Please do indicate with any response whether you would prefer me "Sam Tax" or the other expert to answer.

Thanks

Sam

Customer: replied 1 year ago.
Hi samtax
I would like to know if I worked
1 locum per moth at £450 per shift with my nhs salary added what would be my monthly take home pay
2 if I were to work 2 of these shifts what would my take home pay be monthly
Expert:  Sam replied 1 year ago.

Hi

I have answered number one already - that the deductions amde by the trsut would not be correct (as they would run a separate payroll for the other work so I am advising you what it should be )

1) With £450 extra gross income

Take home pay £2326.76 from main employment

Take home pay from the additional 10 hours locum work £318 but then you will have to pay HMRC £40 additional student loan - which can only be collected at the end of each yax year not frpm he montly pay - so in essence £278

So your take home pay overall would be £2604.76

2) if you work 2 shift so an additional £900 - then tax due would be £312 - and National Insurance of £27.40

So take home pay Locum wortk £499.60

Plus take home from main pay £2326.76

Total take home pay £2826.36

But again HMRC would have to collect the student loan figure at the year end -

Let me know if you have any follow up questions on the advsie provided, and also who you would like to answer, and it would be appreciated if you could rate the level of service I have provided, as this enures Just Answer credit me for my time(just click accept or rate this answer now provided)

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13694
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Customer: replied 1 year ago.
Thank you for that samtax
Could I use an umbrella company to pay the PAYE national insurance and student loan from the extra income and not fill a tax return?
Expert:  Sam replied 1 year ago.

Hi

This really should have been posted as a new question - but as you are fairly new to this site - I shall answer this new question under the exisiting Question thread,

No - NEVER use an Umbrella company these are not correct for the work you do and many employment agencies recommend them to save themselves money (as you then wrongly get stuck with payying your own tax and National Insurance abs then ALSO the Employer National Insurance deductions as well! and they charge you admin for running the scheme and HMRC are cracking don on these and the employment agencied are commiting tax evasion (due to the National Insurance) )

These are in breach of Employment status legislation and IR35 legisaltion as you are AN EMPLOYEE not a self employed individual who then has the right to offer work through a limited company (and even IF this ws permitted you would still have to fill in self assessment as you would still be a 40% taxpayer)

Thanks

Sam

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