1. What is UK Salary Tax?

UK salary tax consists of Income Tax and National Insurance contributions. This calculator helps you estimate your total tax liability based on current tax bands and rates.

2. How Does the Calculator Work?

The calculator uses current UK tax thresholds:

Where:

• Income Tax - Calculated across basic (20%), higher (40%) and additional (45%) rate bands
• National Insurance - Calculated with different rates below and above upper earnings limit
• Personal Allowance - £12,570 (2023-2024) tax-free amount

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 in GBP and select the appropriate tax year. The calculator will show your estimated Income Tax, National Insurance, total tax, and net income.

5. Frequently Asked Questions (FAQ)

Q1: Does this include student loan repayments?
A: No, this calculator focuses only on Income Tax and National Insurance.

Q2: What about pension contributions?
A: Pension contributions may affect your taxable income but aren't accounted for in this basic calculator.

Q3: Are the thresholds different in Scotland?
A: Yes, Scotland has different Income Tax bands which aren't reflected in this calculator.

Q4: How often are NI rates updated?
A: National Insurance rates typically change each tax year (April).

Q5: What about self-employed taxes?
A: This calculator is for PAYE employees only. Self-employed have different NI calculations.