Take Home Pay Calculator

Your tax code is a series of number and letters that tells your employer or pension provider how much Income Tax they should take from your salary or pension. The HM Revenue and Customs (HMRC) is the government agency that decides which tax code to use for you.

Here's how you can find your tax code:

• Check your tax code for the current year online.
• On the HMRC app.
• On your payslip.
• If HMRC sends you a 'Tax Code Notice' letter, you'll find it there.

Your tax code may have a prefix of "S" which means your income is tax using rate in Scotland, or prefix of "C" which means your income is tax using the rate in Wales (same with England).

The numerical part of your tax code represents your personal allowance divided by 10. For example, a tax code of "1257L" represnts a personal allowance of £12570.

Your tax code is usually in the following format, where * represents a numerical digit.

If your tax code ends in "W1" or "M1" or "X" you're on an emergency tax code. Please omit these when entering in the calculator.

If you have entered a BR/D0/D1/D2/NT tax code, your dividends and savings interest will be taxed according to the normal tax band and your personal allowance will be assumed to be £0.

Saving interest is liable to Income Tax but not National Insurance.

This calculator supports using your personal allowance as part of your interests income. However your salary will take priority in using your personal allowance.

Starting Rate for Savings:

You may earn up to £5,000 in interest without having to pay tax on it, which is known as the Starting Rate for Savings.

Assuming you have a personal allowance of £12570. If your other income reaches or exceeds £17,570, you won't be eligible for the Starting Rate for Savings.

If your other income is less than £17,570, your Starting Rate for Savings can be a maximum of £5,000. For every £1 of other income above your Personal Allowance, your Starting Rate for Savings is reduced by £1.

Personal Savings Allowance:

You may also be eligible for the Personal Savings Allowance, which allows you to earn up to £1,000 in interest without paying tax on it. The amount you can claim depends on your Income Tax band.
For Scotland Residents, the income tax band used for savings interest is the same as the rest of the UK. This calculator includes all your other income such as dividends and allowances for this calculation.

The method for repaying Student Loans depends on when you commenced your course and your residence at the time.

To check which plan you are enrolled in, please see below table.

For Scotland you are on plan 4 for both undergraduate and postgraduate programs.

For Wales you are on plan 1 for both undergraduate and postgraduate programs.

For those who've enrolled in multiple plans excluding post graduate, your total deductions remain equivalent to a single loan's repayment, targeting the plan with the lowest threshold first.

For auto-enrolment pensions, the contribution percentage applies to earnings between £6,240 and £50,270. This includes bonuses and overtime. Such contributions aren't subject to Income Tax but do apply to National Insurance.

For employer pensions, the contribution percentage applies to either your gross salary or qualifying earnings depending on your employer. This may include bonuses and overtime depending on your employer. Such contributions aren't subject to Income Tax but do apply to National Insurance.

For salary sacrifice, the contribution percentage applies to either your gross salary or qualifying earnings depending on your employer. This may include bonuses and overtime depending on your employer. Deductions are exempt from both Income Tax and National Insurance, which also leads to a decrease in your student loan amount.

For personal pension, the contribution percentage applies to either your gross salary or qualifying earnings depending on your employer. This may include bonuses and overtime depending on your employer. Your employer will deduct Income Tax and National Insurance as normal. However HRMC will pay your pension provider additional 20% on your contribution. If you are higher rate or additional rate tax payer, you have to contact HRMC to claim your extra tax back.

Think of a bonus as extra pay. Just like the money you earn regularly, the government takes a share of it as tax. When you get a bonus, the tax and other stuff like National Insurance and student loan payments (if you have them) will be bigger for that month. This is because you made more money than usual.

All the money you make, including your bonus, has tax and National Insurance taken out of it. Sometimes, a bonus can push you up into a higher tax group, which means you pay even more tax on that extra money. For example, if you usually make £45,000 a year and then get a £10,000 bonus, a big chunk of that bonus is taxed at a higher rate. After all the usual deductions, someone with this salary might take home about £2,650 each month. But in the bonus month, even though it looks like you're taking home around £8,950, you actually lose about £4,800 to taxes and other deductions.

To view your Bonus breakdown, navigate to the Breakdown (Bonus) tab under Your Results.

Overtime is treated the same as ordinary pay, the amount of tax you will pay will depend on how much you earn. There is no special allowance for overtime hours; it will be worked out the same as normal salary.

You may negotiate with your employer to decrease your salary in return for specific non-cash perks.

Starting April 2017, most of these arrangements will only offer National Insurance savings but not income tax savinga.

Do not enter salary sacrifice pension schemes here but in employer pension. This is only for specific non-cash perks.

Taxable Benefits

Your employer may offer you job-related perks like a company car or private healthcare, referred to as 'benefits in kind'. While you are taxed on the value of these benefits, they are exempt from National Insurance.

If these are already accounted for in your tax code, there's no need to list these benefits here.

Cash Allowances

Your employer may grant you a cash bonus, like a car allowance, which augments your net salary. You'll be liable for both income tax and National Insurance on these allowances.

Child Benefit

Here are the annual rate for Child Benefit based on the number of children:

• For the eldest or only child: £1248.
• For additional children: £826.60.

If your 'adjusted net income' exceeds £50,000 per year, you may be subject to the High Income Child Benefit Charge. This charge amounts to 1% of the Child Benefit you receive for every £100 of income over the £50,000 threshold per year.

This calculator assumes you are claiming for a full tax year and you have a higher taxable income than your partner. Please note that the child benefit tax calculation includes your taxable benefits, savings interests and dividends.

This calculator supports using your personal allowance as part of your interests income. However your salary will take priority in using your personal allowance.

Starting Rate for Savings:

You may earn up to £5,000 in interest without having to pay tax on it, which is known as the Starting Rate for Savings.

Assuming you have a personal allowance of £12570. If your other income reaches or exceeds £17,570, you won't be eligible for the Starting Rate for Savings.

If your other income is less than £17,570, your Starting Rate for Savings can be a maximum of £5,000. For every £1 of other income above your Personal Allowance, your Starting Rate for Savings is reduced by £1.

Personal Savings Allowance:

You may also be eligible for the Personal Savings Allowance, which allows you to earn up to £1,000 in interest without paying tax on it. The amount you can claim depends on your Income Tax band.
For Scotland Residents, the income tax band used for savings interest is the same as the rest of the UK. This calculator includes all your other income such as dividends and allowances for this calculation.

This calculator supports using your personal allowance as part of your dividends income. However your salary and savings interests will take priority in using your personal allowance.

Your income tax band will also be used for your salary/savings interests then your dividends.

You get a dividends allowance of £500 per year.

Dividends is taxed as follow:

For Scotland Residents, the income tax band used for dividends is the same as the rest of the UK. This calculator includes all your other income such as saving interest and allowances for this calculation.

When you give money to charities or community amateur sports clubs (CASCs) using Gift Aid, they get an additional 25 pence from the government for every pound you donate. This extra money does not come out of your pocket. Most of the time, these organizations can increase the value of your donations through Gift Aid, but there are a few types of donations that don't qualify for this boost.

National Insurance letter provides different National Insurance Bands.

Employee National Insurance Rates