UK Tax Calculator
- Enter your income details below then click calculate!
|Tax Free Allowances
|Net Change from 2019
From the date of birth provided (01/01/1970), by the end of tax year 2020/2021, you will be 51 years old. This is the information used to calculate your personal allowance.
Using your date of birth, your state pension date will be 01/01/2037.
You will be 67 years old when you reach state pension age.
Personal Allowance taking into account your age, tax code and the 2020/2021 year is £12,500
Your total tax free allowance is £12,500.
Tax Calculator 2020-2021
This UK Tax Calculator will make light work of calculating the amount of take home pay you should have after all income tax deductions have been considered.
An accurate breakdown of your pay is provided by incorporating the calculations for the following common pay allowances and deductions:
- Personal tax free allowance, depending upon your date of birth and sex, the allowance is automatically calculated.
- Pensions, including three different type of pension scheme.
- National Insurance Contributions are calculated with a choice of eleven NIC letters, spanning PAYE (Class 1), CIS and Self Employed (Class 2 and Class 4) types.
- Income tax is calculated and categorised into bands for savings rate, basic rate, higher rate and additional/top rate (where applicable).
- Salary sacrifices are covered, both for pensions and childcare vouchers.
Once your pay breakdown has been produced you are provided with a table of all deductions, segmented into selectable pay periods. A quick 'at a glance' historic tax chart showing how the gross income provided has differed over the last ten tax years.
You can see how the Government spends the money it receives as income tax and national insurance in two chart breakdowns, which show a percentage spent in each department and another chart, which will breakdown the departmental spend into pounds spent from your contributions.
All tax calculations can be saved and emailed, so you can always return and bring up a copy whenever you need to.
Alongside the numeric comparisons, the calculator will also breakdown your tax status, with the following advanced features:
- All UK tax codes are accepted and will be decoded and automatically checked, providing an explanation of the tax code as well as a check to make sure the correct amount of tax is being deducted. Tax codes valid as of writing include, L, P, T, V, Y and BR, D0, D1, NT, 0T and K.
- Tax savings made by making pension contributions will be detailed and highlighted.
- Tax savings made by purchasing Childcare Vouchers through your salary will be explained.
- Any tax refund, if applicable, will automatically be calculated and displayed.
- Any additional tax due on an annual pay bonus is highlighted for you to show the actual value of the bonus, once considering your regular pay.
- Your state pension age is automatically calculated and the exact date at which retirement is applied is shown. The date is automatically used to deduce whether National Insurance Contributions should be made or not.
We have additional tax calculators across the website to help for alternative circumstances, for example you could need to check your payslip, which are cumulatively taxed. Do this using our Payslip Calculator. If you are looking to change job, are weighing up a pay rise and need to dive into your salary, use our Salary Calculator.
How To Use
This application can only be as accurate as the information that it is provided with. We have taken a lot of care in producing an accurate tax calculator, but rely upon the correct options being chosen and the correct figures provided.
MARRIED - The married option is currently used to deduce whether a Married Couple's Allowances should be provided. It is only available if you or your spouse were born before April 6th 1935.
BLIND - An individual who is registered blind has an additional tax free allowance element on top of the basic tax free personal allowance.
NIC EXEMPT (No NIC) - If you would like no National Insurance Contributions calculated, ticking this box removes all NIC calculations – you can also set your NIC Letter to X (Exempt).
STUDENT LOAN - If you have payments toward a student loan deducted from your pay, please tick this box for these to be calculated automatically.
DATE OF BIRTH - Your date of birth is now a requirement in order to correctly deduce what your tax free personal allowance should be. It is set to default as 1st January 1970.
SEX - In conjunction with your date of birth, your sex is used to calculate allowances as well as your state pension age. This allows an easy method of working out whether National Insurance payments should be made.
ALLOWANCES/DEDUCTIONS - If you have an additional tax allowance, or tax deduction, you can make an adjustment to the way tax is calculated by providing it in this box. For a tax allowance, please enter a positive figure such as 1000 (for a £1,000 allowance). For a tax deduction, please enter a negative number such as -1000 (for a £1,000 deduction). For example, a company benefit in kind of £3,000 per year should be keyed as a tax deduction of -3000.
TAX CODE - Tax codes are automatically calculated and checked for validity. Please make sure you include the letter and the number part, with no spaces. For example, for 2019 the default tax code is 1250L.
SELF EMPLOYED or CIS - Our calculator can accurately calculate taxes for people who are self employed or working within CIS (Construction Industry Scheme). Ticking this option will change the NI contribution class from Class 1, to Class 4 and Class 2.
PENSION CONTRIBUTIONS - If you regularly contribute into a pension plan, please enter the amount and frequency by which, payments are made for. You can enter a percentage or an amount. For percentage, add a % symbol at the end of the amount. So, if contributing 5 percent, enter '5%'. If contribution £50, enter '50'. The calculator will automatically adjust and calculate any pension tax reliefs applicable. Please note, if your pension is a 'relief-at-source' type of pension, the tax deducted on your pay may be higher than shown here. In this case, add the pension relief displayed (tax saving at source column) to your tax deducted amount.
TAX YEAR - Please select the correct tax year for which the calculation is to be made. Remember tax years are not calendar years, instead running from 6th April to 5th April.
GROSS INCOME - Enter the gross income you receive from your employment. If you have a salary sacrifice, please enter the amount after sacrifice, unless the sacrifice is for childcare vouchers or pension and they have been detailed in the calculator. If self employed or CIS, enter the profit figure.
PAY PERIOD - Select the pay period applicable to the gross income amount you have entered. All tax calculation made by this calculator are based upon annual taxation rates and allowances, so any figures provided with be annualised.
The following options are part of the advanced set, and are for individuals with more particular tax circumstances:
NIC LETTER - For tax years 2009 and on, you can specify a different NIC letter to the default letter 'A'. Every letter provided changes the way your NI Contributions are calculated. Letters currently supported are A,B,C,D,E,F,G,J,L,S and X.
PENSION TYPE - Three different types of pension scheme are currently supported, providing you with more flexibility when getting an accurate calculation:
- Employers Scheme - This is the default option and most common. All payments are deducted from your gross income before tax is calculated, however NI payments are still based upon the full gross income. There is no need to claim any tax reliefs as these are provided at source. The tax saving will be displayed by the calculator.
- Private Pension – If you have opted out of a company plan and are investing into a private pension, select this option. You are still taxed on the full amount of your income, as your contributions are made post-tax. However, your private pension plan will immediately claim basic rate relief to top up the contribution. Any higher/additional rate relief must be claim by contacting HMRC or Self Assessment Tax Return.
- Salary Sacrifice – If your employer is making pension contributions for you by reducing your salary by a specified amount, select this option. It is very tax efficient as not only are your tax and national insurance liabilities reduced, but employers national insurance is also reduced. There are no tax reliefs to claim as all savings are made at source.
AUTO-ENROLMENT/QUALIFYING EARNINGS - You can restrict your pension contributions to only the qualifying earnings band (Between the Lower and Upper Earnings Limits). This option only applies if you have entered a percentage for the pension contribution.
STUDENT LOAN SCHEME - There are two student loan schemes, which determine the amount of the payment that is deducted from your gross income. If your student loan was taken on before September 1st 2012, the payment threshold is lower than if the loan was taken after.
CHILDCARE VOUCHERS - The childcare voucher option is applicable only to schemes which were entered into post April 6th 2011. Enter the amount you have sacrificed from your salary monthly to purchase vouchers.
COMPANY CAR/FUEL/BIK TOTAL VALUE - If you have a company car, fuel or receive any other Benefits in Kind, please enter the total combined BIK value in this box.
ANNUAL BONUS - If you received a bonus payment in the tax year selected, you can either enter it by adding it to the gross income provided or by entering it in this box. Entering the bonus in this box will calculated only the additional tax and national insurance the bonus attracts.
About Tax Calculator
This tax calculator can provide accurate tax calculations for three different types of employment structure: employed, self employed or construction industry.
There are a few key differences in the calculations between self employed and employed. People who are employed will have a tax code, and deductions are made before they receive their regular salary. Pay will be calculated using the rules for Pay as You Earn, meaning taxes are worked out cumulatively, so are reliant upon the amount of income, taxation and allowance up to each pay period within the tax year. As this tax calculator is based upon annual calculations, it is working out deductions on an end of year basis, and these will correlate with your pay records as long as the pay, from period to period is regular – or if the amount entered into the calculator is the end of tax year total.
Employees have to pay the same income taxes as people who are self employed. The same percentages and bands are used. Where the two employment types differ is:
- The National Insurance classes are different. Class 1 for employees and Class 4 for self employed. Self employed people also have to pay a fixed weekly Class 2 contribution of a few pounds, if profits are above a minimum threshold.
- The profits wording is important here, as people who are self employed are able to deduct allowable expenses from their turnover before calculating further deductions.
People within CIS receive regular payments from the contractor they work for, however these payments are made net of basic rate tax, effectively all pay has a flat 20 percent taken off at source – with no regard for personal tax free allowances. It is common for someone working in CIS to be earning below the threshold for higher rate tax so they have some adjustments to make at the end of the tax year. Firstly, their income needs to be totted up, allowances made for expenses, provision made for any tax free personal allowance. Income tax and national insurance payments can then be calculated. There is a strong likelihood of a tax refund in these circumstances, and this can be provided by submitted a Tax Return.
This tax calculator will be able to automatically calculate any refund due in the above scenario.