1. What is Take Home Salary?

Take home salary (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:

• Gross Pay — Your total salary before deductions
• Income Tax — Calculated based on your tax code and UK tax bands
• National Insurance — 12% on earnings between £12,570-£50,270, 2% above £50,270
• Student Loan — 9% of earnings above your plan's threshold
• Pension Contributions — Percentage of salary you contribute to your pension

3. UK Tax Bands Explained

2023/24 Tax Year:

• Personal Allowance: 0% on income up to £12,570
• Basic Rate: 20% on income between £12,571-£50,270
• Higher Rate: 40% on income between £50,271-£125,140
• Additional Rate: 45% on income above £125,140

4. Using the Calculator

Tips: Enter your annual gross salary, select your tax code, student loan plan, and enter your pension contribution percentage. The calculator will show your estimated take-home pay and a full breakdown of deductions.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net pay?
A: Gross pay is your total salary before deductions. Net pay is what you actually receive after all deductions.

Q2: How often will I get paid?
A: Most UK employees are paid monthly, but some are paid weekly or fortnightly. This calculator shows annual figures.

Q3: What if I have multiple jobs?
A: Your tax code may be different for each job. Calculate each job separately.

Q4: Are pension contributions tax-free?
A: Yes, pension contributions are deducted before tax is calculated, reducing your taxable income.

Q5: When do student loan repayments start?
A: Repayments begin the April after you leave university, but only if you earn above your plan's threshold.