Comparative Tax Take: Living Wage versus Minimum Wage

2014


 

Individual
32 hours per week
(mimimum wage: £6.31/hour)

Individual
32 hours per week
(Living Wage: £7.65/hour)
Partnered Parent
40 hours per week
(minimum wage: £6.31/hour)

Partnered Parent
40 hours per week
(Living Wage: £7.65/hour)

Gross annual pay (A) 10499.84 12729.60 13124.80 15912.00
Income tax (B)
[(A-10000)*20%]
99.97 545.92 624.80 1182.40
Employee's NI (C)
[(A-7956)*12%]
305.26 572.83 620.16 954.72
Working Tax Credit (D) 702.22 103.54 1302.44 553.95
Child Tax Credit (E) 0.00 0.00 2160.56 2160.56

Net annual income
[A-B-C+D+E]

10796.83 11714.39 15342.84 16489.39
Employer's NI (F)
[(A-7956)*13.8%]
351.05 658.76 713.18 1097.93
Total net tax
[B+C+F-D-E]
54.06 1673.97 -1504.86 520.54

 

RETURN