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 2023-24 UK tax brackets (20%, 40%, 45%)
• National Insurance — 12% on earnings between £12,576-£50,270, 2% above £50,270
• Student Loan — 9% on earnings above threshold (Plan 1: £22,015, Plan 2: £27,295, Plan 4: £27,660)
• Pension — Percentage of gross pay you contribute

3. UK Tax System Overview

Details: The UK has a progressive tax system with tax-free allowance (£12,570 in 2023-24). Income above this is taxed at 20% (basic rate), 40% (higher rate), and 45% (additional rate).

4. Using the Calculator

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

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 tax years?
A: Tax bands and NI thresholds change annually. This calculator uses 2023-24 figures.

Q3: How accurate is the student loan calculation?
A: It assumes standard repayment plan. Postgraduate loans or other arrangements may differ.

Q4: Are pension contributions tax-free?
A: Yes, pension contributions are deducted before tax is calculated (salary sacrifice).

Q5: What about Scottish tax rates?
A: This calculator uses UK-wide rates. Scotland has slightly different tax bands.