1. What is the UK Tax Calculator?

This calculator estimates UK income tax and National Insurance contributions for Pakistani residents working in the UK for the 2024-25 tax year. It helps understand take-home pay after deductions.

2. How Does the Calculator Work?

The calculator uses the UK tax formula:

Where:

• Income Tax — Based on tax bands (20%, 40%, 45%)
• National Insurance — 12% on earnings £12,576-£50,268, 2% above
• Student Loan — 9% on earnings above threshold (varies by plan)

Explanation: The calculation considers personal allowance, tax bands, NI thresholds, and student loan repayment plans.

3. Importance of Tax Calculation

Details: Understanding UK tax obligations is crucial for Pakistani workers to budget effectively, ensure compliance, and claim any eligible tax refunds.

4. Using the Calculator

Tips: Enter gross annual salary in GBP, select appropriate tax code and student loan plan. The calculator will show breakdown of deductions and net income.

5. Frequently Asked Questions (FAQ)

Q1: What is the personal allowance for 2024-25?
A: £12,570 (tax-free allowance). This reduces by £1 for every £2 earned over £100,000.

Q2: What are the tax bands for 2024-25?
A: Basic rate (20%): £12,571-£50,270; Higher rate (40%): £50,271-£125,140; Additional rate (45%): Above £125,140.

Q3: What National Insurance rates apply?
A: 12% on earnings between £12,576-£50,268, 2% on earnings above £50,268.

Q4: How do student loan repayments work?
A: 9% of earnings above threshold: Plan 1 (£22,015), Plan 2 (£27,295), Plan 4 (£27,660).

Q5: Can I claim tax back as a Pakistani worker?
A: You may claim tax refunds if you leave UK before tax year ends or have overpaid. Consult a tax professional.