Internship net salary London

The internship salary is typically not equal to a first year analyst salary (unless your firm has explicitly told you otherwise). I am currently clearing 36K, and on internship it was 28.5K pa (550/wk). Tax is paid at source, as in you will get monthly cheques that have had tax already deducted; I think for seven weeks I made somewhere in the neigbourhood of 3K. And social insurance, you can figure about, who told you interns got that??

Providing you don't have any other income in the tax year your tax free allowance of approx 5,500 ought to cover most of it, the rest taxed at 20% now that the 10% band has been taken out (although I can't remember when exactly it was or is being taken out so it may still be around this summer). National Insurance, what you called the NHS deduction, has to be paid I think.

the tax will be based on the 36k per year, but you will be able to claim a lot of it back at the end of the tax year. National Insurance as it is called will be far more than the tax, as it is not based on your yearly income but per week, I think. So you will pay 11% on your weekly pay between 97 and 645 pounds or something similiar for this year and 1% on everything above 645 pounds. But you can't claim this back at the end, or am I wrong? Most banks do pay the normal full time base pay pro rata. Usually plus a housing allowance.

didn't hear about P38 before, but googling it I think it only applies to students earning less than the tax free income of 5035 pounds. Makes sense, because why pay tax if you're not going to earn more than the threshold anyway?

As I said, if you fill out the P38, you should be able to not have the tax deducted in the first place (saves claiming it back). NI (from what I've heard) still gets deducted normally and isn't something you can claim back.

Quick calculation based on Tortoises NI figures and 800 ppw. You'd pay £725 in NI over 10 weeks, and £394 in tax.

You should go home with £6881, which is 86% of gross.

That all depends on whether Tortoise and I are correct about the figures, and you have no other income, and you don't get screwed by NI or HMRC.

Thats what I found on the HMRC homepage:

"Students: Working only in the holidays while being a student

If you are a student on a course in the UK and you work solely in the holiday periods (summer, Christmas, Easter) you may be able to receive your wages without tax being deducted. You will need to complete a student exemption Form P38(S) (PDF 43K).

To receive your wages without tax being deducted you must:

If you do not meet the P38(S) conditions, or you are on a non-UK college or university course, you should ask your employer for a form P46. We will then tax you under a system called Pay As You Earn (PAYE). Once we have received your completed form P46 (PDF82K), we will:

National Insurance

You will not pay any National Insurance, if you are paid less than £97 a week. £420 a month. If you receive more than this amount you will pay National Insurance of 11% on anything over this amount up to £645 a week or £2795 a month plus 1% on any amount above these figures."

dude is right, basically what I said. Suppose someone is on 36+1 during an 10 week internship. Assuming the 1k housing allowance gets paid as a lump sum during one week (so it doesn't get spread out evenly for NI purposes, which would be bad!) I think that person would be getting the following:

total pay (including 1k housing) pre-tax: 7923 pounds total tax deducted during the summer: 1195 pounds total NI contribution: 70.8 (for the week during which the 1k is paid) + 589 (for the 9 normal weeks) = 659.8 pounds

So during the summer the intern would receive 6068 pounds and at the end of the summer the intern will be able to claim back (1195-326)= 869 pounds

so at the end the intern will have 6937 pounds.

am I right?

and actually it doesn't matter that much whether the 1k is spread out or not, it will only result in a small disadvantage, as the base pay is close to the (645+97) max anyway...

Well, looks like my P38(s) isn't going to get us out of paying taxes. That's what I get for being used to much lower wages...

Although, the P38(S) does say:

You do not have to deduct tax from the pay of a student who works for you solely during a holiday if • this form is filled in on the back, and • the student's pay in your employment does not exceed £5,225. Where the student's pay in your employment exceeds £5,225 you must • deduct tax using code 'OT week 1/month 1' in accordance with paragraphs 110 and 111 of the booklet CWG2 Employer Further Guide to PAYE and NICs.

Anybody know what the OT week 1/month 1 code does? Does it mean that by filling in a P38(S), we are still asking for the company only to deduct the correct amount of tax, enabling us not to have to claim back at the end of the tax year?