1. What is the UK Tax Calculator?

The UK Tax Calculator estimates your Income Tax and National Insurance contributions for the 2024-25 tax year based on your salary, tax code, and pension contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax - Calculated based on 2024-25 tax bands and rates
• National Insurance - Calculated based on 2024-25 NI thresholds and rates

3. Understanding UK Taxes

Details: For 2024-25, the standard Personal Allowance is £12,570. The basic rate (20%) applies to income up to £50,270, higher rate (40%) up to £125,140, and additional rate (45%) above that.

4. Using the Calculator

Tips: Enter your gross annual salary before tax. The default tax code is 1257L (standard personal allowance). Include any pension contributions as a percentage of your salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the tax-free Personal Allowance?
A: For 2024-25, the standard Personal Allowance is £12,570. You don't pay Income Tax on earnings below this amount.

Q2: How is National Insurance calculated?
A: You pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.

Q3: What if I have a different tax code?
A: Change the tax code field if yours differs from 1257L. This affects your Personal Allowance.

Q4: Are pension contributions tax-free?
A: Yes, pension contributions are deducted before calculating taxable income.

Q5: Does this include student loan repayments?
A: No, this calculator doesn't include student loan repayments which are an additional deduction.