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. You will find lan easy to understand table showing the tax rates for 2018  2019 and the previous years.
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Budget 2018 income tax rates and calculator see here
Umbrella company tax calculator
Tax and NI calculator 2019/2020
Tax and NI calculator 2018/2019
Tax and NI calculator 2017/2018
Tax and NI calculator 2016/2017
Tax and NI calculator 2015/2016
Tax and NI calculator 2014/2015
Tax and NI calculator 2013/2014
Tax and NI calculator
2012/2013
Tax and NI calculator
2011/2012
Tax and NI calculator
2010/2011
National minimum wage rates per hour from April 2018:
 £7.83 for 25 years and older
 £7.38 for 21  24 years old
 £5.90 for 18  20 years old
 £4.20 for under 18 years old
 £3.70 for apprentice
How is tax calculated? I'm confused 😕
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 lift you off the ground and get you
knowing. ☺
Your tax is calculated after deducting your
Personal Allowance. Everyone has 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/earning) where
the tax does not apply; is called Personal Allowance).
Example, your salary is £35,000 per annum, your Personal
Allowance is £11,850 per year; so £35,000  £11,850 =
£23,150. So on £23,150 is the 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 £162 per week (£701.94 per month / £8424 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
🤔Also it is not true that student do not get taxed. Students do get taxed like everyone else once their earning has gone above the tax free personal allowanace and tax free NI thresholds. As students usually work parttime hours they earn less which is usually below the personal allowance amount which is tax free thinking they dont get taxed. When they earn more during holidays by working more hours their pay goes above the tax free threshold and get taxed.
Personal Allowance 2018  2019
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.
Earning  Personal Allowance (per year)  

If you are earning up to £100,000  £11,850  
If you are earning between £100,000 and £123,700  Decreases from £11,850 by 50% of every pound you earn (above £100,000) until it reaches £0  
If you are earning £123,700 or more  £0 

Blind person receive an additional amount of £2390 on top of the personal allowance 
Taxable Income/Income Tax
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:
https://www.citizensadvice.org.uk/debtandmoney/tax/whatistaxableincome/taxableandnontaxableincome/.
Tax Rates 2018  2019
These rates apply to different portions of your earning
Your earning [per year after taking away your Personal Allowance amount from your earning]  Tax Rate 2018  2019  That is 

Under your Personal Allowance amount  No tax taken  £0 
£0  £34,500  20%  Basic rate 
£34,501  £150,000  40%  Higher rate 
over £150,000  45%  Additional rate 
Example: Salary minus Personal Allowance: £35,000  £11,850 = £23,150.
So on
£23,150, 20% tax rate will apply as you can see on the table above this amount
falls between £0  £34,500.
Example 2: Salary minus Personal Allowance: £50,000  £11,850 =
£38,150.
On this amount (£38,150), 20% will be applied to up to £34,500
and on the remaining amount it will be 40%.
Like this: 20% of £34,500 (out of £38,150), and 40% of £3650
(remaining of £38,150 minus £34,500). So the tax paid will be
£8360. See the illustration below.
See example #4  Does Tax or NI come out first?
National Insurance Rates 2018/2019
National Insurance Contribution is payable by everyone, until you have reached the state retirement age. National Insurance pays for your state pension and other state benefits.
These rates apply to different portions of your earning
Your Earning [Per year]  National Insurance Rate  That is 

Earnings up to £8424  0%  No National Insurance contribution is payable 
Earnings between £8424 and £46,384  12%  Salary minus £8424 = X, 12% of X 
Earnings £46,384 or more  2%  £46,384 minus £8424 = £36,868, 12% of £37,960 plus salary minus £46,384 = X, 2% of X 
Below the above table is 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 £8424]  National Insurance Rate  That is 

Below £0  0%  No National Insurance contribution is payable 
Between £0 and £37,960  12%  Salary minus £8424 = X, 12% of X 
Between £37,960 or more  2%  £46,384 minus £8424 = £36,868, 12% of £37,960 plus salary minus £46,384 = X, 2% of X 
How to calculate tax?
Here are examples of how Tax and NI is calculated, so you can work out your take home/net pay:
#01 If I earn £5000 per
year, how much tax do I pay:
You have personal allowance of £11850.
Because your salary is below the Personal Allowance amount,
you will not pay tax.
Salary minus Personal Allowance; £5000  £11850 = 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 £8424.
So you keep exactly £5000.
#02 If I earn £15,000
per year, how much tax do I pay:
You have personal allowance of
£11850.
Now to calculate how much tax is due from you, you need to
take away Personal Allowance amount from your salary (Salary
minus Personal Allowance): £15,000  £11850
= £3150
So £3150 is the amount where tax will be taken from.
The tax rate will be for you is 20%.
So 20% of £3150 is £630 (£3150 × 0.2 = £650). So the tax
due is £630.
Now to see how much money is left for you to take home, you
need to also calculate the amount of National Insurance
contribution that will be taken from you.
Your salary is more than £8424 and less than £46,384 so the
National Insurance rate will be 12%.
Any amount below £8424 you don't pay National
Insurance.
So to apply the 12% rate you will need to deduct £8424 from
your earning.
That will be £15,000  £8424 = £6576.
£6576 is the mount
where the 12% will be applied to deduct the amount for NI.
So 12% of £6576 is £789.12 (£6576 × 0.12 = £789.12).
Now you can work out how much you take home/ your net pay:
Salary  Tax  NIC:
£15000  £630 
£789.12 = £13,580.88
Is NI deducted after taking out tax? NI is not deducted after your tax, or vice versa. NI is not calculated and deducted on your earning remaining after the tax deductions. The NI calculations are applied to your full amount of your salary.
#03 If I earn £25000
per year, how is tax and NI calculated:
Your personal allowance is £11,850.
Subtract your Personal Allowance amount from £25,000.
£25,000  £11850 =
£13,150
Now on £13,150 is where the tax
will be deducted from. 20% tax rate will apply.
20% of £13,150 is
£2,630.
£2,630
is deducted for tax.
For National Insurance (NI); Subtract £8424 from
£25,000.
That equals to £16,576. On this amount 12%
will be deducted for NI.
12% of £16576 is
£1989.12. For NI
£1989.12 is deducted.
Total deduction is £2630
+ £1989.12 =
£4,619.12.
You take home £20,380.88
Old rate is used below:
#04 If I earn £60,000
per year, how is tax and NI calculated:
Your personal allowance is £10000.
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 take away your Personal
Allowance amount from your salary: (Salary minus Personal Allowance);
£60,000  £11,000 = £49,000.
£49,000 is the amount where tax
will be applied to.
Now 20% tax rate is applied to £32,000 out
of £49,000. See the Tax
Rates table above.
So
20% of £32,000 is
£6400 (£32,000 × 0.2 = £6400).
Now 40% tax rate is applied to the amount over £32,000
(of
£49,000), that is
£17,000 (£49,000  £32,000 =
£17,000).
So 40% of £17,000
is
£6800 (£17000 ×
0.4 = £6800).
Total tax due is £13,200 (£6400
+
£6800).
For National Insurance contribution, 12% rate is applied to
salary between £8060 and £43,004 and the 2% rate is
applied to amount of the salary
above £43,004.
Earning below £8060
you don't pay National Insurance contribution.
So the the
12% rate will apply to amount between £8060
and £43,004 of your earning. And 2%
above £43,004.
Amount between £8060 and £43,004
is £34,944 (£43,004

£8060).
On £34,944 12% is deducted. 12% of
£34,944 is
£4193.28 (£34,944 × 0.12).
The 2% rate applies to your earning from £43,004 to £60,000.
Which is £16,996 (£60,000  £43,004).
2% of £16,996 =
£339.92 (£16,996
× 0.02).
For National insurance contribution; £4533.20 (£4193.28
+ £339.92) is deducted from your earning.
Finally you can work out how much you take home: [Salary]  [Tax]  [NIC]:
£60,000  £13,200 
£4533.20 =
£42,266.8
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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.
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Learn and teach yourself how the PAYE Tax and National Insurance (NI) is applied to your salary.
UK Tax year 06 April 2018 to 05 April 2019.