Frequently asked questions
Answers to the most common questions about UK take-home pay: what’s deducted from your salary, how income tax and National Insurance differ, how student loans and the pension relief methods work, and how Scotland differs.
Your take-home pay is your gross salary less income tax above the Personal Allowance (£12,570), less Class 1 National Insurance, and less any student-loan repayment and workplace pension. Everything is collected through PAYE, so it comes out before the money reaches your account.
No. Employer (secondary) National Insurance is paid by your employer on top of your wage — it is never taken out of your take-home pay. The calculator shows it as a separate figure and includes it in the total cost to your employer, not in your deductions.
The Personal Allowance is the amount of income you can earn before income tax applies — £12,570 for the standard tax code (1257L). Above £100,000 it is gradually withdrawn, and it reaches zero at £125,140.
Between £100,000 and £125,140 the Personal Allowance is withdrawn by £1 for every £2 you earn. On top of higher-rate tax, that makes each extra pound in the range cost about 60% (67.5% in Scotland) — higher than the headline top rate of 45%. The calculator applies the taper automatically.
Income tax is cumulative across the year; National Insurance is charged per pay period and is not cumulative. Class 1 employee NI is 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), then 2% above that.
Scottish taxpayers pay income tax on a 6-band scale set by the Scottish Parliament, applied through the “S” tax-code prefix. National Insurance and the Personal Allowance are the same across the UK. Set the region control to Scotland to use the Scottish scale.
Repayments are collected through PAYE once your income passes your plan’s threshold — a percentage of the income above it. If you hold more than one undergraduate plan, a single deduction is taken over the lowest threshold. A Postgraduate Loan is repaid concurrently and in addition to any undergraduate plan.
It depends on the relief method. Salary sacrifice comes out of gross before both tax and National Insurance; a net-pay arrangement comes out of gross before tax; relief at source comes out of your take-home, with the scheme reclaiming basic-rate relief into your pot. The calculator lets you choose the method.
Wales sets a Welsh Rate of Income Tax, but for 2026/27 it currently matches the rest of the UK, so the calculator treats Wales as rest-of-UK. The Senedd may set different rates in future.
The calculator works out the annual assessment and divides it back to a pay period. National Insurance is legally worked out per period and is non-cumulative, and PAYE tax codes operate cumulatively across the year, so a single real payslip — especially with a bonus or a mid-year change — can differ from an even annual split.
The calculator applies the published 2026/27 rates, but it cannot know your tax code, benefits in kind or a mid-year change, and PAYE is cumulative across the year. Treat the figure as an estimate and check an official amount with your employer or HMRC.
- National Insurance Explained: A Guide for UK WorkersA breakdown of your National Insurance contributions: who pays them, how they are collected, and why they matter for your future state benefits.
- Statutory Sick Pay: Rights and RatesAn overview of employee rights to Statutory Sick Pay: who qualifies, the weekly rate and its 80% cap, the 28-week maximum, fit notes and linked periods.
The figures behind these answers come from GOV.UK and HMRC, and each one is cited on the page that uses it. If a rate changed recently it may not be reflected here yet — for an official amount, check the cited source or ask HMRC.