UK Salary Calculator – Understand Your Taxes and NI Contributions
If you work in the UK, you are required to pay Income Tax and National Insurance contributions on your salary. It is oftern confusing when applying for jobs what the take-home pay based on your earnings, so our UK Salary Calculator provides a quick and easy solution. By using the UK tax tables which as we know change perdiodically along withthe information you enter, the tool will provide you with an estimation of your net income. It factors into account your deductions for Income Tax and National Insurance contributions resulting in a net pay figure.
Everything You Need to Know About Tax and National Insurance
Whats the difference between Income Tax and National Insurance? Here’s a breakdown:
Income Tax is a tax that is deducted directly from your salary once your income exceeds your personal allowance amount. There may be allowances, such as Marriage Allowance and Blind Person’s Allowance, that can increase your personal allowance. Our UK Salary Calculator will determine your personal allowance based on your situation and adjust your estimated take-home pay accordingly.
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £150,000 40%
Additional rate over £150,000 45%
National insurance (NI) contributions are payable by an employee aged 16 or over who earn above £242 a week or are self-employed and make a profit of £11,908 or more in a year. These contributions are made to qualify for certain benefits such as a state pension or maternity allowance. The amount you pay depends on your personal circumstances and the different classes of NI payments.
Calculating your income Our Salary Calculator provides a comprehensive breakdown of the salary you will receive before tax and then your net salary after any deductions. Deductions based on your income tax estimation and estimated NI contributions are subtracted from your yearly, monthly, weekly, daily and hourly pay to give you a thorough overview of your earnings.
Please note: This calculator provides estimates based on the UK tax tables and the information you enter. It should be used as a guide only. For further information regarding UK Income Tax rates and Personal Allowances visit https://www.gov.uk/income-tax-
| Personal Allowance | Up to £12,570 | 0% | |||
| Basic rate | £12,571 to £50,270 | 20% | |||
| Higher rate | £50,271 to £150,000 | 40% | |||
| Additional rate | over £150,000 | 45% |
To estimate your take-home pay or net pay you will be required to pay, simply complete the short form above. You can also adjust the tax year for a historical view of your earnings and a few other factors to give you a more accurate figure.
Keep in mind that the calculator is designed to work for the current tax year or previous tax years, so if you are planning to change jobs in the future, you should allow for this in your salary calculations.
National Insurance Contributions National Insurance contributions are calculated differently from Income Tax.They are a percentage of the salary you earn between £183 to £962 per week, depending on your age and whether you are self-employed or employed.The contributions are used to fund state benefits such as the State Pension and Maternity Allowance.
