1. What is Net Pay?

Net pay is the amount of money you take home after all deductions from your gross salary. 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 any deductions
• Income Tax — Deducted based on your tax code and income level
• National Insurance — Contributions based on your earnings
• Student Loan — Repayments if applicable (Plan 1, 2, or 4)
• Pension Contributions — Workplace or personal pension deductions

3. UK Tax Year 2024-25

Details: For the 2024-25 tax year (6 April 2024 to 5 April 2025), the 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 £125,140.

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions. The calculator will show your estimated take-home pay for the year. For monthly calculations, divide the result by 12.

5. Frequently Asked Questions (FAQ)

Q1: How often is pay calculated in the UK?
A: Most employees are paid monthly, though some are paid weekly or fortnightly.

Q2: What's the difference between gross and net pay?
A: Gross pay is your salary before deductions, while net pay is what you actually receive.

Q3: Are pension contributions tax-free?
A: Most workplace pension contributions are made before tax is deducted, reducing your taxable income.

Q4: When do student loan repayments start?
A: Repayments begin the April after you graduate, once earning above the threshold (£27,295 for Plan 2 in 2024-25).

Q5: Can I get a tax refund?
A: You may be eligible for a refund if you've overpaid tax, especially if you've changed jobs or had multiple income sources.