UK homebuyers may find it more difficult to get a mortgage, as lenders deal with a wide range of new regulations aimed at preventing lending to people more likely to default on their mortgages. The new regulations require homebuyers to take strict tests aimed at assessing their ability to cover all aspects of household spending….
When you are looking for a new job with better pay and perhaps better benefits, there are times when a small increase can make a huge difference in take home wages. Sometimes you are offered a pay rise within the same company, but will it work to your advantage in terms of net (take home) pay? Perhaps you have been out of work and have just been offered a new job. Will it pay enough after taxes to support you?
You can use a handy online Wage Calculator to see just how much money you will be making and if that pay rise or new salary will make a difference in what you are actually able to use. Keep in mind that wage brackets do affect how much the taxman takes from you, so use a Wage Calculator any time you are looking for a job or considering a pay rise. This way you can plan your finances accordingly.
How Does a Wage Calculator Work?
If you have never had the opportunity to use an online Wage Calculator, you should know that there are several different types, some easier to use than others. Even so, it is simply an online form-based software program that asks a series of questions which you answer and the Wage Calculator will tell you what your take home pay will be.
You will also be told how much you will be paying in NI and income tax and some calculators even tell you the net change between what you netted in 2010 and what you would net this year. Before April 2012, if there are changes to the income tax rates, online calculators will be updated accordingly.
Common Information Asked to Calculate Wages
Some questions will be asked with tick-off boxes. You may be asked if you are married, blind, if you have opted out of NICs or if you have a student loan. These are generally ticked off answers. Next you will be asked for your age, sex and whether or not you are state pension age, usually abbreviated SPA. These may be drop down menus with choices such as male or female.
You may be asked if you have any allowances or deductions. If so, don’t forget to enter the amount with a minus sign in front of it so it can be calculated correctly as a deduction. Sometimes a Wage Calculator will ask if you are self employed and you will need your tax code as well because income tax is based on this. Pension contributions and the tax year will also be asked and finally you will be asked for your gross wages and if that is annual, monthly, 4 week, 2 week, 1 week or hourly. At the end of the questions simply hit the ‘Calculate’ button and you will have your net take home pay within seconds.
Most Wage Calculators provide a complete breakdown on your pay including what you pay in income tax and NICs. You will be given your total taxable income as well as when the tax is due. Some provide total deductions but most people look for that bottom line – what you will be taking home. Whether you are changing jobs or looking at a pay rise, a Wage Calculator can be an invaluable tool.