1. What is the Moneysavingexpert Salary Calculator?

This calculator helps you understand your take-home pay in the UK after deductions for income tax, National Insurance, student loan repayments, and pension contributions. It follows MoneySavingExpert principles for accurate calculations.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — 0% up to £12,570, 20% on £12,571-£50,270, 40% on £50,271-£150,000, 45% above £150,000
• National Insurance — 12% on £12,570-£50,270, 2% above £50,270
• Student Loan — 9% above threshold (Plan 1: £22,015, Plan 2: £27,295, Plan 4: £31,395)
• Pension — Percentage of gross salary you contribute

3. Understanding UK Tax Bands

Details: The UK has a progressive tax system with different rates for different income bands. Your tax-free Personal Allowance is £12,570 (2023/24 tax year). National Insurance has different thresholds and rates.

4. Using the Calculator

Tips: Enter your gross annual salary before tax, select your student loan plan (if any), and enter your pension contribution percentage. The calculator will show your deductions and net pay.

5. Frequently Asked Questions (FAQ)

Q1: Are the tax bands up to date?
A: This calculator uses 2023/24 tax year rates. Always check HMRC for the latest thresholds.

Q2: What about other deductions?
A: This calculator doesn't account for other deductions like workplace benefits or voluntary contributions.

Q3: How accurate is this calculator?
A: It provides a good estimate but your actual take-home pay may vary slightly due to rounding or other factors.

Q4: What if I'm self-employed?
A: This calculator is for PAYE employees. Self-employed individuals have different tax and NI calculations.

Q5: Does this include the Scottish tax rates?
A: No, this calculator uses UK-wide rates. Scotland has slightly different income tax bands.