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General Guidance re Take-home pay

Income Tax
Tax rates and bands are usually updated every May. The 2018/19 tax bands and rates are as follows:

Rate

Threshold from April 2018 (£)

Percentage

Basic 34,500

20

Higher 34,501 to 150,000

40

Additional Over 150,000 45

In addition, there is an allowance, below which no tax is deducted. The current (April 2018) basic personal allowance is £11,850. If you are coming from abroad or you do not have a current P45, you will be taxed without any allowances until we receive notification from HMRC of your allowance code.
Please note that tax is applied on a cumulative basis every month; you do not earn £11,850 without paying any tax at all, rather the allowance is spread equally over the year.
If you decide to join one of the University’s pension schemes or are auto-enrolled into a pension scheme, then tax is applied to your pay after your pension contribution has been deducted.

(HMRC have a website that gives a useful overview of UK tax)

National Insurance
National Insurance rates are usually updated every April. The current (April 2018) NI rates and bands are as follows:

Earnings limits per month

Employee's contribution

Up to £702

0%

£702-£3,863 12%
Over £3,863

2%

Please note that NI is not cumulative, if you earn in excess of £702 any month, you will pay NI on the amount above that.

Pension
The University of Warwick operates 2 pension schemes: if you are grade FA4 or below you may join or be auto-enrolled into University of Warwick Heritage Defined Contributions scheme, above this grade you may join or be auto-enrolled into USS.
The current contribution rates are:

Scheme

Contribution rate from 1/04/18 (%)

UWPS (Defined Benefits Scheme)
not available to new starters

5.5

Heritage Defined Contributions Scheme 2,3,4 or 5
Heritage Defined Contributions Scheme (auto-enrollment)

2

USS

8

Take-home pay
An individual’s monthly take-home pay will obviously depend upon their individual circumstances. As a very general guidance based on the basic personal allowance your take-home pay on the following salaries would be approximately:

Salary (£)

Gross pay per month (£)

Tax (£)

NI(£)

Pension (£)

Take-home pay (£)

30,000 (opted out of a pension scheme)

2,500

303

216

0

1,982

30,000 (in pension scheme)

2,500

263

192

200

1,846

50,000 (opted out of a pension scheme)

4,167

697

385

0

3,085

50,000 (in pension scheme)

4,167

563

379

333

2,891

80,000(opted out of a pension scheme)

6,667

1,697

435

0

4,535

80,000 (in pension scheme)

6,667

1,483

425

533

4,225