1. What is the UK Salary Calculator?

The UK Salary Calculator for 2020-21 tax year helps estimate your take-home pay after deductions for income tax, national insurance, student loan repayments, and pension contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your annual salary before deductions
• Income Tax — Calculated based on 2020-21 UK tax brackets
• National Insurance — Calculated based on weekly thresholds
• Student Loan — Plan 1 or Plan 2 repayments if applicable
• Pension Contributions — Percentage of gross pay you contribute

3. Understanding UK Tax Brackets 2020-21

Income Tax Rates:

• Personal Allowance: £0-£12,500 (0%)
• Basic Rate: £12,501-£50,000 (20%)
• Higher Rate: £50,001-£150,000 (40%)
• Additional Rate: Over £150,000 (45%)

National Insurance:

• Primary Threshold: £183/week (£9,500/year)
• 12% on earnings between £183-£962/week
• 2% on earnings above £962/week

4. Using the Calculator

Tips: Enter your gross annual salary, select your student loan plan if applicable, and enter any pension contributions as a percentage of your salary.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides estimates. Your actual take-home pay may vary based on specific circumstances.

Q2: What's the difference between Plan 1 and Plan 2 student loans?
A: Plan 1 has a threshold of £19,390 (9% above this), Plan 2 has £26,575 (9% above this).

Q3: Is pension contribution tax-free?
A: Yes, pension contributions are deducted before income tax is calculated.

Q4: What about other deductions?
A: This calculator doesn't account for other deductions like union fees or charitable giving.

Q5: How often is this calculator updated?
A: This is specifically for the 2020-21 tax year. Tax rates and thresholds change annually.