1. How UK Salary Calculation Works

The UK salary calculation deducts Income Tax, National Insurance, Student Loan repayments (if applicable), and Pension contributions from your gross salary to determine your net pay.

2. Income Tax Breakdown

2024/25 Tax Year Rates:

• Personal Allowance: £0 - £12,570 (0% tax)
• Basic Rate: £12,571 - £50,270 (20% tax)
• Higher Rate: £50,271 - £125,140 (40% tax)
• Additional Rate: Over £125,140 (45% tax)

3. National Insurance Contributions

2024/25 NI Rates:

• Primary Threshold: £12,570/year
• £12,571 - £50,270: 8%
• Above £50,270: 2%

4. Student Loan Repayments

Repayment Plans:

• Plan 1: 9% on income over £22,015
• Plan 2: 9% on income over £27,295
• Plan 4: 9% on income over £27,660

5. Frequently Asked Questions (FAQ)

Q1: Is pension contribution calculated before tax?
A: Yes, pension contributions are typically deducted before tax calculations (salary sacrifice).

Q2: Are these calculations accurate for Scotland?
A: No, Scotland has different income tax bands. This calculator uses England/Wales/NI rates.

Q3: How often are student loans deducted?
A: They're deducted through payroll each pay period, like tax and NI.

Q4: What about other deductions?
A: This calculator doesn't account for benefits, bonuses, or other voluntary deductions.

Q5: Are NI rates the same for employers?
A: No, employers pay different NI rates. This calculator only shows employee contributions.