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] |
2012 - 2013 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 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!
This is a free 2012 - 2013 UK online tax calculator 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?
Tax calculator 2012/13 - Now containing a comparison row; to compare your take home pay with the last tax year
Welcome to iknowtax.com where you will find Tax and
NI calculators containing the latest official rates from the HMRC. It allows you
to calculate your net income after tax and see what the taxman is taking.
Above you will find links to the Tax and NI calculators and an easy to
understand table showing the rates for 2012 - 2013 and the previous years.
The new national minimum wage is effective from October 2011. New rates are (per hour):
You have come to the right place! This is the first stop for you to
understand about tax rates and how it is calculated. You can learn from
scratch here. After reading this page you can then search and ask specific
questions on Google about tax. You will know what you're doing!
Understanding and calculating tax can be quite complicated so this website
will list you off the ground and get you knowing.
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 of your salary 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 £25,000 per annum, your Personal Allowance is £8105
per year; so £25,000 - £8105 = £16,895. So on £16,895 is amount 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 £7592 per year. 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 £100000 | £8105 | |
| Under 65 | If you are earning between £100000 and £116210 | Decreases from £8105 by 50% of every pound you earn (above £100000) until it reaches £0 |
| If you are earning £116210 or more | £0 |
|
| If you are earning up to £25400 | £10500 | |
| If you are earning between £25400 and £30190 | Decreases from £10500 by 50% of every pound you earn (above £25400) until it reaches £8105 | |
| 65 - 74 | If you are earning from £30190 to £100000 | £8105 |
| If you are earning between £100000 and £116210 | Decreases from £7475 by 50% of every pound you earn (above £100000) until it reaches £0 | |
| If you are earning £116210 or more | £0 | |
| If you are earning up to £25400 | £10660 | |
| If you are earning between £25400 and £30510 | Decreases from £10660 by 50% of every pound you earn (above £25400) until it reaches £8105 | |
| 75 and over | If you are earning from £30510 to £100000 | £8105 |
| If you are earning between £100000 and £116210 | Decreases from £8105 by 50% of every pound you earn (above £100000) until it reaches £0 | |
| If you are earning £116210 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 £2100
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 2012 - 2013 | that is |
| Below £0 | No tax is taken | --- |
| £0 - £34,370 | 20% | called Basic rate |
| £34,371 - £150,000 | 40% | called Higher rate |
| over £150,000 | 50% | called Additional rate |
Example: Salary minus Personal Allowance: £35,000 - £8105 = £26,895. So on
£26,895, 20% tax rate will apply as you can see on the table above this amount
falls between £0 - £34,370.
Example 2: Salary minus Personal Allowance: £50,000 - £8105 =
£41,895.
On this amount (£41,895), 20% will be applied to up to £34,370
and on the remaining amount it will be 40%.
Like this: 20% of £34,370 (out of £41,895), and 40% of £7525
(remaining of £41,895 minus £34,370). So the tax paid will be
£9884.
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 2012 - 2013 | that is |
| Earnings up to £7592 | 0% | No National Insurance contribution is payable |
| Earnings between £7592 and £42,484 | 12% | Salary minus £7592 = X, 12% of X |
| Earnings £42,484 or more | 2% | [£42484 minus £7592 = £34892, 12% of £34892] 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 £7592] | National Insurance rate 2012 - 2013 | that is |
| Below £0 | 0% | No National Insurance contribution is payable |
| Between £0 and £34,893 | 12% | Salary minus £7591 = X, 12% of X |
| Between £34,893 or more | 2% | [£42484 minus £7592 = £34892, 12% of £34892] plus Salary minus £42484 = X, 2% of X |
Here are examples of how Tax and NI is calculated, so you can work out your take home/net pay:
These examples are based on the 2011 rates. These examples are currently being updated to 2012.
#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 freely or on iknowtax.com facebook page!
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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.
All your emails are welcome. I read every email sent to me. Email: admin@iknowtax.com
If you want this tax calculator on your website or would like
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