1. What is the UK Salary Tax Calculator?

This calculator helps Pakistani residents working in the UK estimate their income tax, National Insurance contributions, and student loan repayments for the 2024-2025 tax year based on their salary and personal circumstances.

2. How Does the Calculator Work?

The calculator uses current UK tax rates and thresholds:

Where:

• Income Tax — Calculated based on tax bands (20%, 40%, 45%)
• National Insurance — Calculated based on NI category and thresholds
• Student Loan — Repayments based on plan type and thresholds

Explanation: The calculator accounts for personal allowance, tax bands, NI categories, and student loan plans to provide accurate estimates.

3. Understanding UK Taxes for Pakistani Residents

Details: Pakistani residents working in the UK are subject to the same tax rules as UK residents. This calculator helps understand take-home pay after UK tax deductions.

4. Using the Calculator

Tips: Enter your annual salary in GBP, select your tax code, NI category, and student loan plan if applicable. The calculator will estimate your deductions.

5. Frequently Asked Questions (FAQ)

Q1: What is the personal allowance for 2024-25?
A: The standard personal allowance is £12,570. You don't pay income tax on earnings below this amount.

Q2: What are the current tax bands?
A: Basic rate (20%): £12,571-£50,270; Higher rate (40%): £50,271-£150,000; Additional rate (45%): over £150,000.

Q3: What NI category should I select?
A: Most employees should select Category A. Category B is for married women who opted for reduced rate before 1977. Category C is for those over state pension age.

Q4: How are student loans repaid?
A: Repayments are 9% of earnings above the threshold for your plan. Plan 1 threshold: £22,015; Plan 2: £27,295; Plan 4: £27,660.

Q5: Is this calculator accurate for self-employed?
A: No, this calculator is for PAYE employees. Self-employed individuals have different NI contributions and tax payment schedules.