UK Tax Calculator

Your Tax and NI

In our example from the tax calculations below, £35,000 after tax and NI will result in a £2,257 monthly net salary in 2018, leaving you with £27,080 take home pay in a year. You will pay a total of £4,700 in tax , and you’ll also have to pay £3,220 in National Insurance . Your hourly rate will be £17 if you’re working 40 hours per week. Scroll down below to see more details about your salary.

Your income: £35,000
Gross salary £35,000
Personal allowance: £11,500
Tax free 33%
Tax: £4,700
13.4%
National insurance: £3,220
9.2%
Net income: £27,080
Take home 77.4%
£
Monthly net pay

£35,000 after tax break-down

Year Month WeekDayHour
Gross income£35,000£2,917£673£135£17
Personal allowance£11,500£958£221£44£6
Total taxable£23,500£1,958£452£90£11
Tax£4,700£392£90£18£2
National insurance£3,220£268 £62£12£2
Net pay£27,080£2,257 £521£104£13

£50,000 after tax and NI will result in a £3,064 monthly net salary in 2018, leaving you with £36,799 take home pay in a year. You will pay a total of £4444 in tax, and you’ll also have to pay £2222 in National Insurance. Your hourly rate will be £24.05 if you’re working 40 hours per week. Scroll down below to see more details about your salary.

Your income
Web Designer 50%
Personal allowance
Tax free 13%
Tax
Total tax 50%
National insurance
Total NI 50%
Net income
Take home 50%
£
Monthly net pay

UK Tax Explained

Every person earning money in the UK is liable for paying income tax – a percentage of your earnings are given to the UK government, to partially cover expenses such as NHS, infrastructure (roads, rails), welfare (benefits), and many more. The UK tax system might seem complicated at first, but its actually not as complex as it seems. 

Here is simplified ilustration of how tax is paid in the UK:

  • Everyone has a tax free personal allowance of £11,500 (for earnings between Apr 2017-Apr 2018) – this means that on £11,500 from your salary you won’t pay any tax. You’ll only pay tax if you earn above this, and only for the sum above this value.
  • You will pay 20% tax on the first £33,500 after your personal allowance (for earnings from £11,501 to £45,000)
  • You will pay 40% tax on earnings between £45,000 and £150,000
  • You will pay 45% tax on earnings above £150,000
  • Another important thing is the fact that your personal allowance will start dropping after your earnings reach £100,000 – it will drop £1 for every £2 earned. Which means that as your earnings reach £123,000, your personal allowance will drop to £0.

National Insurance Explained

Apart from income tax, you will also need to pay National Insurance (which is in fact another form of tax) if you earn above a certain limit. National Insurance is used primarily to fund NHS, state pension, state benefits and disability alloweances. Here are some of the most important points about National Insurance (for PAYE employees):

  • You don’t pay national insurance on the first £8,164 you are earning
  • You’ll pay 12% NI on the earnings between £8,164 and £45,000
  • You’ll pay 2% NI on the earnings above £45,000

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