1. What is Net Salary?

Net salary is the amount of money you take home after all deductions (like income tax and National Insurance) have been taken from your gross salary. It's your actual take-home pay.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Your total salary before any deductions
• Income Tax — The amount deducted for UK income tax
• National Insurance — The amount deducted for National Insurance contributions

Explanation: This calculation gives you your take-home pay after the two main UK salary deductions.

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with budgeting, financial planning, and comparing job offers. It shows what you'll actually have available to spend each month.

4. Using the Calculator

Tips: Enter your gross salary (before deductions), income tax amount, and National Insurance contributions in GBP. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my income tax and NI amounts?
A: These should be on your payslip. Income tax depends on your tax code and salary band, while NI depends on your earnings.

Q2: Are there other deductions not included here?
A: Yes, this is a simplified calculation. Other deductions might include pension contributions, student loan repayments, or workplace benefits.

Q3: How accurate is this calculator?
A: It's accurate for the inputs provided. For precise calculations, use HMRC's official tax calculator or consult your payslip.

Q4: Does this work for self-employed income?
A: No, self-employed individuals have different tax and NI calculations. This is for PAYE employees only.

Q5: Why use Martin Lewis's approach?
A: Money Saving Expert provides clear, unbiased financial information to help UK consumers make informed decisions about their money.