Enter your salary and click show to calculate how much tax you pay
| Yearly | Monthly | Weekly | Hourly | |
| Salary | ||||
Personal Allowance |
||||
| Tax paid | ||||
| NI contribution | ||||
| Total deduction | ||||
| You Take Home | ||||
| Comparison: You Take Home last year [click show] |
2011 - 2012 income tax and NI calculator UK
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P60 is a end of tax year summary of how much you have earned, paid tax and NIC. If you have got your P60 use the 2010/2011 tax calculator to see if you paid too much tax.
No. You may have been thinking this; if one was calculated first, then the other, you could have saved some money. See the examples.
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Are you paying too much tax? If you are paying too much tax, you can claim back tax, get a tax refund (/rebate) by contacting your local Inland Revenue office or your employer. You have 6 years time limit to claim back. Visit: www.hmrc.gov.uk/incometax/stop-work-refund.htm
Do I get taxed more on the second job?
You get taxed whatever you will have got taxed if you were
earning this amount from the 2nd job on your first job as
an additional amount of pay. So there is no special rates
for a second job, no extra tax or less tax. All your earning
is added together and your then tax is worked out!
If you earn £1,000,000 you would be paying more than half
in taxes and NIC:
Tax: £478,000.00
NI: £23,381.04
Take home: £498,618.96
Thisismoney.co.uk
reported some high earners like Wayne Rooney avoided paying tax through
tax loopholes
read here.
If you are earning more than £42,589, you will be taking home less this tax year 2011 read here
This is a free UK online tax calculator 2011 website. It provides a free to use individually or commercially tax calculator tool. It also aims to make a complete beginner understand how tax is worked out. Feel free to read and refer to the tax calculator. Please comment below or email me your feedback or questions.
One of the great features of this tax calculator is that it allows you to enter your hourly pay rate and the number of hours you work weekly. Enter your standard weekly hours you work, to accurately display your pay hourly, and tax paid hourly. Ideal for freelancers, contractors (or anyone only knows their hourly rate) to work out tax paid. It also calculates as you type which will help a professional like an accountant (payroll, bookkeeping) that may have to constantly calculate.
You can also compare on the tax calculator this years take home pay with last years, so you can see if the new tax rates are better for you or not.
Married Couples Allowance: Select the box MCA on the tax calculator to calculate married couples allowance. To get married couples allowance you need to be married or in a civil partnership and one spouse must be born before 6 April 1935. More info: http://www.hmrc.gov.uk/incometax/married-allow.htm
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Tax + NI Calculator
Who is this website for?
Why did you make this website?
See last years tax calculator 2010-11 -Check if you have paid the correct amount of tax. HMRC is to demand money from 1.2 million tax payers
Welcome to Tax and NI calculator April 2011 to April
2012, Contains the latest official rates from HMRC
Click on the link for 2010/11 tax calculator and rates
| View Tax calculator for
2012-2013 and the rates
The new national minimum wage is effective from October 2011. New rates are (per hour):
28/08/2011 - All the visitors of this website if you like this website and you have a website or blog, I would be grateful if you could post a link to this website. Thanks.
20/06/11 - I am a contractor now! So I shall understand a contractors need better and reflect it here.
News: This tax calculator will soon be able to calculate your
pension and student loans.
Update: There may be a delay in adding student loan and pension to the
calculator then expected
Learn here how Tax and National Insurance is applied to your earning and how its
deducted.
You will understand about the deductions on your payslip!
You have come to the right place! This is the first stop for
you to get familiar about tax and then you can search and ask specific questions on
Google about tax. Calculating tax can be quite complicated so this website will give you
some insight to get you started. Learn income tax calculation from scratch!
Your tax is
calculated after deducting your personal allowance. Everyone gets Personal
Allowance unless you are earning over £100,000 (which your personal allowance
starts to deduct bit by bit until it reaches zero). Your tax is calculated on your
salary (or earning) left after taking away your Personal Allowance amount from your salary,
(Personal Allowance is the amount where tax is not applied, making anything in
that amount a tax free income) (Don't get confused; personal allowance doesn't
mean that you get this amount as extra money coming to you, it is the part of
your income (salary) where the tax does not apply, which is called Personal Allowance).
Example,
your salary is £20,000 pa, your personal allowance is £7475 pa; so £20,000 - £7475 =
£12,525. So on £12,525 is where the tax will be taken from as a percentage (detailed examples below).
Still, more is deducted for your National Insurance Contribution (NIC) if you have not
reached the state pension age. The amount for National Insurance is deducted as
a percentage on salary above £7228 pa. Look at the tables below.
It's a myth: It is sometimes better to not earn more, by getting a higher paid job or a second job because you will lose out by paying more tax
What is Personal Allowance: Personal Allowance is the portion of your earning where tax is not applied, making that portion of your earning tax free.
| Age | Condition | Personal Allowance (per year) |
| If you are earning up to £100,000 | £7475 | |
| Under 65 | If you are earning between £100,000 and £112,950 | Decreases from £7475 by 50% of every pound you earn (above £100,000) until it reaches £0 |
| If you are earning £112,950 or more | £0 |
|
| If you are earning up to £22,900 | £9490 | |
| If you are earning between £22,900 and £28,930 | Decreases from £9940 by 50% of every pound you earn (above £24,000) until it reaches £7475 | |
| 65 - 74 | If you are earning from £28,930 to £100,000 | £7475 |
| If you are earning between £100,000 and £112,950 | Decreases from £7475 by 50% of every pound you earn (above £100,000) until it reaches £0 | |
| If you are earning £112,950 or more | £0 | |
| If you are earning up to £22,900 | £10,090 | |
| If you are earning between £22,900 and £29,230 | Decreases from £10,090 by 50% of every pound you earn (above £24,000) until it reaches £7475 | |
| 75 and over | If you are earning from £29,230 to £100,000 | £7475 |
| If you are earning between £100,000 and £112,950 | Decreases from £7475 by 50% of every pound you earn (above £100,000) until it reaches £0 | |
| If you are earning £112,950 or more | £0 |
This table is rounded up to the nearest pound
If you are blind you get an additional amount on top of your personal allowance of £1980
Taxable income is your earning where tax can be applied to.
These are some that counts as taxable income; income from employment, self
employment/partnership, pension, investment earning, rental property, state
benefits. For more information visit:
http://www.hmrc.gov.uk/incometax/taxable-income.htm#1.
These rates are used to apply to the different portions of your earning
| Your earning [per year after taking away your Personal Allowance amount from your earning] | Tax rate 2011 - 2012 | that is |
| Below £0 | No tax is taken | --- |
| £0 - £35,000 | 20% | called basic rate |
| £35,001 - £150,000 | 40% | called higher rate |
| over £150,000 | 50% | called additional rate |
Example: Salary minus Personal Allowance: £40,000 - £7475 = £32,525. So on
£32,525, 20% tax rate will apply as you can see on the table above.
Example 2: Salary minus Personal Allowance: £50,000 - £7475 =
£42,525.
On this amount (£42,525), 20% will be applied to
up to £35,000 and on the remaining amount it will be 40%. Like
this: 20% of £35,000 (out of £42,525), and 40% of
£7525(remaining of £42,525 - £35,000). So the tax paid will be
£10,010.
See example #4 | Does Tax or NI come out first?
National Insurance Contribution is payable by everyone, until you have reached the state retirement age. Currently the state retirement age for males is 65 years old and females is 60 years old. National Insurance pays for your state pension and other state benefits.
| Your earning [per year] | National Insurance rate 2011 - 2012 | that is |
| Earnings up to £7228 | 0% | No National Insurance contribution is payable |
| Earnings between £7228 and £42,484 | 12% | Salary minus £7228 = X, 12% of X |
| Earnings £42,484 or more | 2% | [£42484 minus £7228 = £35256, 12% of £35256] plus [Salary minus £42484 = X, 2% of X] |
These rates are used to apply to the different portions of your earning.
Below is the above table presented in a different way (it makes it a little easier to see how to apply NI rates on your earning) :
| Your earning [per year, after subtracting £7228] | National Insurance rate 2011 - 2012 | that is |
| Below £0 | 0% | No National Insurance contribution is payable |
| Between £0 and £35,256 | 12% | Salary minus £7228 = X, 12% of X |
| Between £35,256 or more | 2% | [12% of £35256] plus [Salary (after subtracting £7228) minus £35256 = X, 2% of X] |
Here are examples of how Tax and NI is calculated, so you can work out your take home/net pay:
#01 If I earn £3000 per year, how is tax
and NI
calculated:
You are under 65 years so you will get personal allowance of
£7475.
Because your salary is below the Personal Allowance amount, you will not pay tax:
Salary minus Personal Allowance; £3000 - £7475 = below
£0, so there is no amount left to tax on.
You will also not pay any National Insurance contribution because you are earning below £7228.
So you keep exactly £3000.
#02 If I earn £10,000 per year, how is tax
and NI calculated:
You are under 65 years old so your personal allowance is £7475.
Now to calculate how much tax is due from you, you need to takeaway Personal
Allowance amount from your salary (Salary minus Personal Allowance): £10,000 - £7475 = £2525
So £2525 is the amount where tax will be
taken from.
The tax rate will be for you is 20% of
£2525.
So 20% of £2525 is £505
(£2525 × 0.2
= £505). So the tax due is £505.
Now to see how much money is left for you to take home, you need to also calculate the amount of
National Insurance contribution will be taken from you.
Your salary is more than £7228 and less than £42,484 so the
National Insurance rate will be
12%.
Any amount below £7228 you don't need to
pay National Insurance contribution (NIC).
So to apply the 12% rate
you will need to takeaway £7228 from your earning.
That will be £10,000 - £7228 = £2772. £2772 is the mount where the
12% will be
applied to deduct
the amount for NIC. So 12% of £2772
is £332.64 (£2772 × 0.12
= £332.64).
Now you can work out how much you take home/ your net pay: Salary - Tax - NIC:
£10000
- £505 - £332.64 =
£9162.36
#03 If I earn £20,000 per year, how is tax
and NI calculated:
You are under 65 years old so you personal allowance will be £7475.
Subtract your Personal Allowance amount from £20000.
£20000 - £7475 = £12525
Now on £12,525 is where the tax will be deducted from. 20% tax rate will
apply.
20% of £12,525 is £2505. So £2505 is deducted for tax.
For National Insurance (NI); Subtract £7228 from £20,000.
That is £12,772. On this amount 12% will be deducted for NI.
12% of £12,772 is £1532.64. For NI £1532.64 is deducted.
Total deduction is £2505 + £1532.64 = £4037.64.
You take home £15,962.36
#03.1 If I earn £30,000 per
year, how is tax and NI calculated:
You are under 65 years old so your personal allowance is £7475.
Subtract your personal allowance amount from earning £30,000.
£30000 - £7475 = £22,525
£22,525 is less then £35,000, so 20% tax rate will apply (see the Tax Rates table above).
20% of £22525 is £4505 (£22525 × 0.2 = £4505).
So for tax £4505 is deducted.
For National Insurance; Subtract £7228 from £30,000.
That is £22,772. (£30000 - £7228 = £22772).
£22,772 is below £35,256 (see the NI table above), so 12% will be applied to it.
12% of £22,772 is £2732.64 (£22772 × 0.12 = £2732.64).
For National Insurance £2732.65 is deducted.
Total deduction is £7,237.64 (£4505 + £2732.64).
You take home £22,762.36 (£30000 - £4505 - £2732.64 = £30000), your net pay
#04 If I earn £45,000 per year,
how is tax and NI calculated:
You are under 65 years old so your personal allowance is £7475.
Tax rate of 20% and 40% will apply. See the
Tax Rates table above.
To calculate how much tax is due from you, you need to takeaway your Personal
Allowance amount from your salary: (Salary minus Personal Allowance); £45,000 -
£7475 = £37,525.
£37,525 is the amount where tax
will be applied to.
Now 20% tax rate is applied to
£35,000 out of £37,525.
So
20% of £35,000 is
£7000 (£35,000 × 0.2 = £7000).
Now 40% tax rate is applied to the amount over £35,000 (of
£37,525), that is
£2525 (£37,525 - £35,000 = £2525).
So 40% of £2525 is
£1010 (£2525 × 0.4 = £1010).
Total tax due is £8010 (£7000 +
£1010).
For National Insurance contribution, 12% rate is applied to salary between
£7228 and £42,484 and the 2% rate applies to amount of the money
above £42,484.
Earning below £7228
you don't need to pay National Insurance contribution. So the the 12% rate will apply to
between £7228 and £42,484 of your earning. And 2%
above £42,484.
So,
12% of (£42,484 - £7228 = £35,256); 12% of £35,256 is £4230.72.
The 2% rate
applies to your earning from £42,484 to £45,000. 2% of (45,000 - 42,484);
2% of £2516 = £50.32.
For National insurance contribution £4281.04 (£4230.72
+ £50.32) is deducted
from your earning.
Finally you can work out how much you take home: Salary - Tax - NIC:
£45000 - £8010 - £4281.04 =
£32708.96
Was this easy to understand and useful? Did you find anything confusing? Got any questions about iknowtax.com? Please let me know by emailing me admin@iknowtax.com or comment below free!
Privacy: This tool/website does not collect any salary information you enter to calculate your tax.
Disclaimer: I am not a tax professional, so please do not use this information to make any big decisions. Do consult a professional when making any big decisions.
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The PAYE Tax and National Insurance (NI) take home pay (salary) UK calculator 2011/2012.
UK Tax year 06 April 2011.
Kash
