Uknetpay.com is an online salary calculator designed to calculate take-home pay after income tax and NI contributions in just a few clicks. This calculator is based on the UK tax year 2024-25 and is an ideal solution to calculate net salary.
To calculate UK take-home pay, select your salary type, enter the amount and click on the Calculate button. But, there are three more options which you can select either “Yes” or “No”. You will see your take-home pay after deducting income tax and NI contributions, as well as other time frame salaries.
Take Home Pay Calculator
Note: This calculator is based on the tax year 2023-24 and deducts NI contributions from your salary at 0%, 8% and 2%. If you select “Yes” for the pension option then it will deduct 5% from your salary.
UK Tax Breakdown
The personal allowance, set at £12,570, is free from taxation. Income over £12,571 and up to £50,270 is taxed at 20%, while income between £50,271 and £125,140 is taxed at 40%. Any income over £125,140 is taxed at a rate of 45%. Read more about the UK tax breakdown via the official website.
| Band | Taxable Income | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
NI Contribution
You are exempt from tax and National Insurance contributions if your gross income is less than £12,570 a year. Suppose you earn between £12,570 and £50,270 per year, an 8% fee applies, 10% before April 2024 and 12% before that. If income exceeds £50,270 per year, there is a 2% charge.
If your annual income falls in the following categories, then you pay —
- On earnings between £1,476.00 to £12,570 = 0%
- On earnings between £12,570.00 to £50,270 = 8%
- On earnings over £50,270 = 2%
Frequently Asked Questions
Net salary is the amount of money an employee takes after all deductions from his gross pay. These deductions include income tax, national insurance contributions, pension contributions, student loan repayments and other deductions.
To calculate net salary, the following steps are followed:
Gross salary: This is the total salary before any deductions.
Deduct income tax: Income tax is deducted based on the tax code and UK income tax rates.
Subtract National Insurance Contributions (NICs): NICs are calculated based on your earnings and the applicable rates.
Deduct pension contributions: If you are enrolled in a pension plan, contributions are deducted as per the rules of the plan.
Subtract student loan repayments: If you have student loans, repayment is calculated based on your income and repayment plan.
As of the current 2023/2024 tax year, UK income tax rates are as follows:
Personal Allowance: £0 – £12,570 (0%)
Base Rate: £12,571 – £50,270 (20%)
Higher Rate: £50,271 – £125,140 (40%)
Additional Rate: Over £125,140 (45%)
National Insurance Contributions (NICs) are paid by both employees and employers to finance various state benefits. For employees, NICs are calculated as follows for the 2023/2024 tax year:
Class 1 (Employee) Contribution:
Primary Range: £242 – £967 per week (12%)
Above the primary threshold: More than £967 per week (2%)
Yes, many online salary calculators other than uknetpay.com can help you calculate your net salary. You need to enter your gross salary, tax code (optional), pension contributions and other details. Here is the official income tax calculator provided by the UK Government.