1. UK Tax System Overview

The UK tax system for 2025-26 includes Income Tax and National Insurance contributions. This calculator helps Pakistani users understand their UK tax obligations based on their salary.

2. Income Tax Calculation

Income tax is calculated based on these 2025-26 brackets:

• Personal Allowance: £0 - £12,570 (0%)
• Basic Rate: £12,571 - £50,270 (20%)
• Higher Rate: £50,271 - £125,140 (40%)
• Additional Rate: Above £125,140 (45%)

3. National Insurance Calculation

National Insurance is calculated as:

• Primary Threshold: £12,570 per year
• 12% on earnings between £12,570 and £50,270
• 2% on earnings above £50,270

4. Using the Calculator

Tips: Enter your annual salary in GBP. The calculator will show your income tax, national insurance, total tax, and net income.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator accurate for Pakistani residents?
A: Yes, it calculates UK taxes based on UK tax laws, regardless of nationality.

Q2: Are there any deductions not included?
A: This doesn't account for student loans, pension contributions, or other deductions.

Q3: What if I have multiple income sources?
A: This calculator is for employment income only. Other income may be taxed differently.

Q4: How often are tax brackets updated?
A: Typically annually in the UK Budget. This uses 2025-26 projections.

Q5: Can I use this for self-assessment?
A: This is for PAYE employees. Self-employed have different NI calculations.