Your Tax and NI
In our example from the tax calculations below, £35,000 after tax and NI will result in a £2,265 monthly net salary in 2018, leaving you with £27,181 take home pay in a year. You will pay a total of £4,630 in tax , and you’ll also have to pay £3,189 in National Insurance . Your hourly rate will be £16.83 if you’re working 40 hours per week. Scroll down below to see more details about your salary.
£35,000 after tax break-down
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 £11,850 (for earnings between Apr 2018-Apr 2019) – this means that on £11,850 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 £34,500 after your personal allowance (for earnings from £11,851 to £46,350)
- You will pay 40% tax on earnings between £46,350 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.
- There different tax rules for Scotland. To calculte you tax and net pay for Scotland, please use our avanced tax calculator.
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 £8,424 you are earning
- You’ll pay 12% NI on the earnings between £8,424 and £45,000
- You’ll pay 2% NI on the earnings above £46,332
Basic rate tax income (at 20%)
£12,000 | £13,000 | £14,000 | £15,000 | £16,000 | £17,000 | £18,000 | £19,000 | £20,000 | £21,000 | £22,000 | £23,000 | £24,000 | £25,000 | £26,000 | £27,000 | £28,000 | £29,000 | £30,000 | £31,000 | £32,000 | £33,000 | £34,000 | £35,000 | £36,000 | £37,000 | £38,000 | £39,000 | £40,000 | £41,000 | £42,000 | £43,000 | £44,000 | £45,000 | £46,000 | £46,350