1. What is Take Home Pay?

Take home pay (net pay) is the amount you receive after all deductions from your gross salary. In the UK, these deductions typically include Income Tax, National Insurance contributions, student loan repayments, and pension contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax - Calculated using UK 2022-23 tax brackets
• National Insurance - Calculated using 2022-23 NI rates
• Student Loan - Based on your repayment plan (Plan 1, Plan 2, or Postgraduate)
• Pension Contributions - Percentage of gross pay you contribute

3. UK Tax Year 2022-23 Details

Income Tax Rates:

• Personal Allowance: £12,570 (0%)
• Basic Rate: £12,571 to £50,270 (20%)
• Higher Rate: £50,271 to £150,000 (40%)
• Additional Rate: Over £150,000 (45%)

National Insurance Rates:

• Primary Threshold: £190/week (£9,880/year)
• 12% on earnings between £190 and £967/week
• 2% on earnings above £967/week

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator accurate for all situations?
A: This provides an estimate based on standard tax codes. Special circumstances (multiple jobs, benefits in kind, etc.) may affect actual take-home pay.

Q2: What's the difference between Plan 1 and Plan 2 student loans?
A: Plan 1 has a lower repayment threshold (£19,895) than Plan 2 (£27,295). Both have 9% repayment rates above threshold.

Q3: Are pension contributions tax-free?
A: Yes, pension contributions are deducted before tax is calculated, reducing your taxable income.

Q4: What about Scottish tax rates?
A: This calculator uses UK-wide rates. Scotland has slightly different income tax bands.

Q5: How often is this calculator updated?
A: This is for the 2022-23 tax year only. Tax rates and thresholds change annually.