This take home pay calculator allows you to customize values for an accurate breakdown. Updated 2024 April.
Personal Allowance
Personal Allowance is an amount of money you're allowed to earn each year without having to pay income tax on it.
You can used this allowance for your salary, savings interests, dividends and other income.
For the 2024/25 tax year, the Personal Allowance is set at £12,570. If you earn less than this amount, you typically won't owe any Income Tax.
This allowance can change in a few situations. It might be more if you qualify for benefits like Marriage Allowance or Blind Person's Allowance. But it can also be less if you're a high earner or if you have unpaid taxes from a previous year. You can find your personal allowance using your tax code or here.
If your income exceeds £100,000, there's a different rule. For every £2 you earn above this threshold, £1 is subtracted from your £12,570 allowance. So, if you earn £125,140 or more, you'll have to pay Income Tax on your entire income, and there won't be any tax-free allowance left.
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.
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 £12,570.
Your tax code is usually in the following format, where * represents a numerical digit.
| Tax Code | Description |
|---|---|
| ****L | Standard tax-free Personal Allowance |
| ****M | Marriage Allowance: 10% transfer of partner's Personal Allowance |
| ****N | Marriage Allowance: 10% transfer of your Personal Allowance to partner |
| ****T | Tax code includes calculations for Personal Allowance |
| K**** | You have income that is not being taxed another way and it’s worth more than your tax-free allowance. |
| 0T | Personal Allowance used up or new job without tax code |
| BR | All income taxed at basic rate |
| D0 | All income taxed at higher rate (Intermediate Rate in Scotland) |
| D1 | All income taxed at additional rate (Higher Rate in Scotland) |
| D2 | All income taxed at top rate |
| NT | No tax on this income |
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.
Income tax is determined using something called tax bands, which are set by the government and can change in the future. These tax bands are essentially different levels of income, and they each have a corresponding tax rate or percentage.
You income tax band can be used to account for all your taxable income, this calculator prioritize the following when utilizing your income tax bands.
1. Salary
2. Interests
3. Dividends
For England, Wales and Northern Ireland
Assuming your tax code is 1257L.
| Taxable income | Tax rate | Band |
|---|---|---|
| Up to £12,570 | 0% | Personal Allowance |
| £12,571 to £50,270 | 20% | Basic rate |
| £50,271 to £125,140 | 40% | Higher rate |
| over £125,140 | 45% | Additional rate |
If you have a different tax code, you can use the following table to work out your tax band after removing your personal allowance from your taxable income.
| Taxable income above personal allowance | Tax rate | Band |
|---|---|---|
| £0 to £37,700 | 20% | Basic rate |
| £37,701 to £125,140 | 40% | Higher rate |
| over £125,140 | 45% | Additional rate |
For Scotland
Assuming your tax code is 1257L. Please note if you are resident of Scotland, your income from dividends, child benefits, savings interests will still be taxed at England rates.
| Taxable income | Tax rate | Band |
|---|---|---|
| Up to £12,570 | 0% | Personal Allowance |
| £12,571 to £14,876 | 19% | Starter rate |
| £14,876 to £26,561 | 20% | Basic rate |
| £26,562 to £43,662 | 21% | Intermediate rate |
| £43,663 to £75,00 | 42% | Higher rate |
| £75,001 to £125,140 | 45% | Advanced rate |
| over £125,140 | 48% | Top rate |
If you have a different tax code, you can use the following table to work out your tax band after removing your personal allowance from your taxable income.
| Taxable income above personal allowance | Tax rate | Band |
|---|---|---|
| £0 to £2,305 | 19% | Starter rate |
| £2,306 to £13,990 | 20% | Basic rate |
| £13,119 to £31,091 | 21% | Intermediate rate |
| £31,092 to £62,430 | 42% | Higher rate |
| £62,430 to £125,140 | 45% | Advanced rate |
| over £125,140 | 48% | Top rate |
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 £12,570. 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.
| Income Tax Band | Personal Savings Allowance |
|---|---|
| Basic rate | £1,000 |
| Higher rate | £500 |
| Additional rate | £0 |
The method for repaying Student Loans depends on when you commenced your course and your residence at the time.
| Plan | Threshold (£) | Percentage (%) |
|---|---|---|
| 1 | 24990 | 9 |
| 2 | 27295 | 9 |
| 4 | 31395 | 9 |
| 5 | 25000 | 9 |
| PG | 21000 | 6 |
To check which plan you are enrolled in, please see below table.
| England | Wales | |
|---|---|---|
| Plan 1 | If you started your course before 1 September 2012 | If you started your course before 1 September 2012 |
| Plan 2 | If you are starting your course for an undergraduate course or PGCE between 1 September 2012 and 31 July 2023 | If you are starting your course for an undergraduate course or PGCE after 1 September 2012 |
| Plan 4 | N/A | N/A |
| Plan 5 | If you are starting your course for an undergraduate course or PGCE on or after 1 August 2023 | N/A |
| Post Graduate | If you are starting your course for a postgraduate course after 1 September 2012 | If you are starting your course for a postgraduate course after 1 September 2012 |
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.
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 savings.
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:
If your 'adjusted net income' exceeds £60,000 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 £200 of income over the £60,000 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.
Interests Income
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.
| Income Tax Band | Personal Savings Allowance |
|---|---|
| Basic rate | £1,000 |
| Higher rate | £500 |
| Additional rate | £0 |
Dividends Income
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:
| Income Tax Band | Tax rate (%) |
|---|---|
| Basic rate | 8.75 |
| Higher rate | 33.75 |
| Additional rate | 39.35 |
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.
| A | All employees not in groups B, C, H, J, M, V, or Z |
| B | Married women and widows with reduced National Insurance |
| C | Employees above State Pension age |
| H | Apprentices under 25 |
| J | Employees deferring National Insurance due to other job |
| M | Employees under 21 |
| V | Veterans in their first job after leaving the armed forces |
| Z | Employees under 21 deferring National Insurance due to other job |
| F | All freeport employees not in groups I, L, or S |
| I | Married women and widows in freeports with reduced National Insurance |
| L | Freeport employees deferring National Insurance due to other job |
| S | Freeport employees over State Pension age |
Employee National Insurance Rates
| Category letter | £123 to £242 (£533 to £1,048 a month) | £242.01 to £967 (£1,048.01 to £4,189 a month) | Over £967 a week (£4,189 a month) |
|---|---|---|---|
| A | 0% | 8% | 2% |
| B | 0% | 1.85% | 2% |
| C | N/A | N/A | N/A |
| F | 0% | 8% | 2% |
| H | 0% | 8% | 2% |
| I | 0% | 1.85% | 2% |
| J | 0% | 2% | 2% |
| L | 0% | 2% | 2% |
| M | 0% | 8% | 2% |
| S | N/A | N/A | N/A |
| V | 0% | 8% | 2% |
| Z | 0% | 2% | 2% |
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