You go to work and you’re there 7,8,9 hours a day. You work 40 hours per week and you think you know what is the amount you should earn. Of course, you have a contract, everything is written there. You know that there is a tax to pay, national insurance, perhaps some private pension, or any other investments. But do you know what is the actual amount that you bring home at the end of the month, the week?

It may seem easy and understandable when you look at your payslip. Most of the time your employer will show the amount they take away for all the “necessities” and the final sum that will end up on your bank account. Sometimes, though, they just show you that number that they “owe” you, without any deductions. And then, depending on what the initial amount is, the payment may be a little surprise, not in a good way. When I worked for a big boss, I got a regular sum every month, all was stated on my payslip. When I started working for different bosses, I had to be more careful. I’m self-employed and some of the businesses I work for pay VAT, some don’t. Some employers take away NI payments, others don’t. It’s more complicated now. At first, I spent a fair amount of time trying to understand what’s what, what’s for and why do I have to pay for it. I’m not an accountant but I like to keep my calculations simple and intelligible.

Nowadays, when internet gives us the power to use its tools, it’s much easier to find out the truth. I wanted to know how much do I have to pay according to the UK law, how much and what for I could pay to secure my and my family’s future and how much I can afford at the end of a day. Calculations.

I found it interesting but sort of fair too, that people who earn less, pay less tax (I mean “tax” as all the payments that are obligatory to the government). Without receiving any kind of benefits, if you earn less than £ 11000, you should get 100% on your bank account as the amount free of tax is £11850 for the year 2018-2019. If you earn above it, you’d pay NI and social contributions (like A&E, police, firefighters, pensioners, unemployed, etc)...

Anywho… if you have a clear amount on your bill, payslip or any kind of document and you want to calculate what you can afford after “the tax”, use a salary calculator. There are options to fit your situation, you can adjust them, play with them. It’s not a bullet-proof tool, but it can put you up on your feet. You’d know what you can afford, where your money goes to and what’s there in return.

Author's Bio: 

Working our way to earn as much as possible is not always the best option. Find your freedom, happiness and satisfaction.