1. What is Net Pay?

Net pay (take-home pay) is the amount of money you receive after all deductions have been taken from your gross salary. In the UK, these deductions typically include Income Tax, National Insurance Contributions, Student Loan repayments (if applicable), and Pension Contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total salary before any deductions
• Income Tax — Amount deducted for UK income tax
• National Insurance — Contributions to the UK social security system
• Student Loan — Repayments for Plan 1, 2, or postgraduate loans
• Pension — Contributions to your workplace or private pension

3. UK Tax and Deductions Explained

Income Tax: Progressive tax system with different bands in England, Wales, and Northern Ireland (Scotland has different rates). The standard Personal Allowance is £12,570 (2023/24 tax year).

National Insurance: Contributions depend on your employment status and earnings. Most employees pay Class 1 contributions.

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions. For accurate results, use figures from your payslip or HMRC tax code notice.

5. Frequently Asked Questions (FAQ)

Q1: How often should I calculate my net pay?
A: Whenever your salary changes, or at least annually to account for tax band changes.

Q2: Are bonuses included in gross pay?
A: Yes, all taxable income should be included in your gross pay figure.

Q3: What if I have multiple jobs?
A: You'll need to calculate each job separately and sum the net pays.

Q4: How accurate is this calculator?
A: It provides estimates. For precise figures, consult your payslip or HMRC.

Q5: Does this include other deductions like union fees?
A: No, this calculator covers only the main mandatory deductions.