Standard
Base Take-Home
£99,766
£8,314 / month
Optimized
New Take-Home
£95,201
£7,933 / month
The Strategy
Annual Wealth Boost
£3,735
£311 / month
Personal Take-Home Analysis
| Category | Base Case | Optimized | Optimization Impact |
|---|---|---|---|
| Adjusted Net Income (ANI) | £166,000 | £157,700 | -£8,300 |
| Income Tax | £60,903 | £57,168 | -£3,735 |
| Employee NI | £5,331 | £5,331 | -£0 |
| ANNUAL NET (CASH) | £99,766 | £95,201 | +-£4,565 |
| MONTHLY NET (CASH) | £8,314 | £7,933 | +-£380 |
Retirement Wealth Growth
| Contribution Source | Base Case | Optimized | Optimization Impact |
|---|---|---|---|
| Employer Contribution | £1,321 | £1,321 | +£0 |
| Employee Contribution | £0 | £8,300 | +£8,300 |
| TOTAL ANNUAL POT GROWTH | £1,321 | £9,621 | +£8,300 |
Employer Cost Analysis
| Cost Category | Base Case | Optimized | Optimization Impact |
|---|---|---|---|
| Gross Salary Paid | £166,000 | £166,000 | £0 |
| Employer NI (15.0%) | £24,150 | £24,150 | £0 |
| Employer Pension (3.0%) | £1,321 | £1,321 | £0 |
| ANNUAL EMPLOYER COST | £191,471 | £191,471 | £0 |
| MONTHLY EMPLOYER COST | £15,956 | £15,956 | £0 |
How we calculated "The Strategy"
1. Personal Allowance Taper (The 60% Trap)
Formula: £12,570 - ((Adjusted Net Income - £100,000) / 2)
Base PA: £0 vs Opt. PA: £0(Savings: £0)
2. Income Tax Breakdown
Formula: Σ (Taxable Income in Band × Rate)
Cured Bands (on Taxable):
Basic (20%): £37,700 × 0.20
Higher (40%): £87,440 × 0.40
Addit (45%): £32,560 × 0.45
Employee NI:
Rate: 8% up to £50,270, 2% above
Applied to effective gross: £166,000
3. Employer National Insurance Savings
Formula: (Pension Sacrifice) × 15.0%
By sacrificing £8,300, your employer saves £0 in Class 1 Secondary NI.