1. What is UK Salary Tax?

UK salary tax consists of Income Tax and National Insurance contributions. Income Tax is calculated based on tax bands, while National Insurance is a separate contribution that funds state benefits.

2. How Does the Calculator Work?

The calculator uses current UK tax rules:

Where:

• Income Tax — Calculated based on tax bands (Basic, Higher, Additional rates)
• National Insurance — Calculated on earnings above threshold with different rates

3. Importance of Tax Calculation

Details: Understanding your tax liability helps with financial planning, budgeting, and ensuring you're paying the correct amount of tax.

4. Using the Calculator

Tips: Enter your gross annual salary and select the appropriate tax year. The calculator will show your estimated Income Tax and National Insurance contributions.

5. Frequently Asked Questions (FAQ)

Q1: What's the Personal Allowance?
A: For 2023-24, you can earn £12,570 tax-free. This allowance may be reduced for high earners.

Q2: How often is National Insurance paid?
A: Typically deducted monthly through PAYE if you're employed.

Q3: Are pension contributions considered?
A: This calculator uses gross salary. Pension contributions may reduce your taxable income.

Q4: What about student loan repayments?
A: This calculator doesn't include student loan repayments which are additional deductions.

Q5: Is this calculation accurate for self-employed?
A: No, self-employed individuals have different National Insurance rates and payment schedules.