Re: Salary Calculation
If you are a basic rate taxpayer then the following gives you how much tax you pay on your combined monthly salary/car allowance.
Tax = (Monthly Gross Salary + Car Allowance - 1054.17) x 0.2
This gives you the total tax paid in a month.
To work out how much tax you pay on your car allowance use the following.
(Car Allowance / Salary) x Tax(from above)
Obviously this is approximate figures.
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