In order to accurately calculate your salary after tax, enter your gross wage (salary before any tax or deductions are applied) and select any conditions why apply to you.

The average UK annual salary is £29,600*, equating to £1950 per month.

With effect from April 2022, the thresholds for making student loan deductions are:

• Plan 1- £20,195 annually (£1,682.91 a month or £388.36 a week)
• Plan 2 - £27, 295 annually (£2,274.58 a month or £524.90 a week)
• Plan 4 - £25,375 annually (£2,114.58 a month or £487.98 a week)

Employees repay 9% of the amount they earn over the threshold for Plan 1, 2 and 4.

Further up to date information about repaying student loans.

This information is based on Income Tax, National Insurance and Student Loan information from April 2022.

HMRC may adjust your personal allowance, often because of benefits like a company car or private healthcare. They do this by providing your employer with a tax code which indicates what your personal allowance should be.

The usual effect of such an adjustment would be to lower your personal allowance, meaning that you pay tax on more of your income. If you receive benefits such as private healthcare or a company car through your employer, you pay more tax on your salary so that the value of these benefits is also taxed.

Tax codes usually indicate the personal allowance by including a number which is the personal allowance divided by ten. The standard code 1257L indicates a personal allowance of £12,570.

• L, P, Y, M, N and T codes indicate the personal allowance to be assigned as described above
• K codes indicate the amount by which the taxable income should be increased if you owe more tax
• A BR code indicates you pay 20% basic rate tax on all income
• A D0 code indicates you pay 40% tax on all income
• A D1 code indicates you pay 45% tax on all income
• An NT code indicates you pay no tax

From April 2016, tax codes can start with the letter S, which indicates that you pay the Scottish Rate of income tax. 

Income Tax is a tax you pay on your salary on amounts exceeding your Personal Allowance, currently set at £12,500. Our Salary Calculator will determine your personal allowance based on your situation and adjusts your estimated take-home pay accordingly.

National insurance (NI) contributions are payable by income earners aged 16 or over who earn more than £183 a week or are self-employed and make a profit of £6,475 or more in a year. Employees within the UK pay NI contributions in order to qualify for certain benefits such as a state pension or maternity allowance. There are different classes of NI payments and your personal circumstances will determine the amount you pay.