How is my UK Tax Calculated?
Unlike many simple calculators, we use the exact HMRC tax bands and allowances for the 2024/25 tax year (valid through April 2025). Your take-home pay is determined by three main deductions:
- Income Tax: Progressive rates (20%, 40%, 45%) on earnings above your Personal Allowance (usually £12,570).
- National Insurance (NI): Mandatory contributions for state benefits. Currently 8% on main earnings (Standard 2025 Rate).
- Student Loans: Repayments calculated as 9% of earnings above a specific threshold (e.g., Plan 2 is £27,295).
Frequently Asked Questions
What is the Personal Allowance for 2024/25?
The standard Personal Allowance is £12,570. This is the amount you can earn tax-free. If you earn over £100,000, this allowance is reduced by £1 for every £2 you earn over the limit.
Does this include the current National Insurance rates?
Yes. We use the latest 8% National Insurance rate for 2024/25 and 2025. Simply enter your gross salary to see the new figures.
How do Scottish Tax Codes work?
Scotland has different income tax bands (Starter, Basic, Intermediate, Higher, Top). Our calculator supports Scottish tax codes (usually starting with 'S') via the 'Advanced' mode settings.
What about the £100k Tax Trap?
Earning between £100,000 and £125,140 results in an effective 60% marginal tax rate because you lose your Personal Allowance. Our calculator highlights this in the breakdown.
2024/25 Tax Bands (England/NI)
Did you know?
You can increase your take-home pay by using "Salary Sacrifice" for pension contributions. This saves you National Insurance as well as Income Tax.
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