UK Net Salary Income After Tax Calculator

Net Salary Calculator

2010-02-10T17:05:00.000-08:00

It can often be a difficult task to work out approximately what you could be earning if you were to take on a different job or move to a new area. For this reason it is a good idea to use a salary calculator to help you see if your new job will work for you financially. The amount of money you will earn depends on a number of different factors. This includes your work experience, education, how well you speak your chosen foreign language and how well you speak English. It is important to only accept a job if you know that you can afford to do so.

What is a Salary Calculator?

A career salary calculator is one of many online tools that will allow those trying to find a new job get a rough estimate of the amount of money they could make in different sectors of the market. There are a number of different types of salary calculator available, some will only give you an idea of the base level pay for specific jobs whilst others take into account the possibility of bonuses and incentives. For the majority of salary calculators you will be asked to enter your job location as this can be one of the biggest factors relating to how much you will be paid. Other information you will normally be required to complete will include your chosen career although some of the more advanced salary calculators may require you to input more information before it can give you an estimate.

How to determine your Net Salary

It is important to know if you will have enough money to pay your rent or mortgage as well as bills and other living expenses. To find your net salary income simply find your gross annual salary and using a net income salary calculator read across. This will provide you with your net per year, net per month and net per week. Once you have worked out what your net salary is likely to be it is important to work out your net salary after tax. The main reason that you need to do this is because it is this figure you will be receiving every month. To work this out you will need to use the appropriate tables to determine your income tax rate and any income tax allowances.

Income Tax Rates 2009 - 2010 in the UK

2009-05-03T07:42:00.000-07:00

Income tax rates in the UK for 2009 - 2010 tax period are given below. Initially, you should deduct the income tax allowance so we also provided the allowances for different categories of people.

Income tax rates

2008-09	£ per year	2009-10	£ per year
Starting savings rate: 10%*	£0-£2,320	Starting savings rate: 10%*	£0-£2,440
Basic rate: 20%	£0-£34,800	Basic rate: 20%	£0-£37,400
Higher rate: 40%	Over £34,800	Higher rate: 40%	Over £37,400

Income Tax allowances:

Allowances	2008-09	Change	2009-10
Personal allowance (age under 65)	£6,035	+£440	£6,475
Personal allowance (age 65-74)	£9,030	+£460	£9,490
Personal allowance (age 75 and over)	£9,180	+£460	£9,640
Married couple's allowance* (aged less than 75 and born before 6 April 1935)	£6,535		**
Married couple's allowance* (age 75 and over)	£6,625	+£340	£6,965
Married couple's allowance* - minimum amount	£2,540	+£130	£2,670
Income limit for age-related allowances	£21,800	+£1,100	£22,900
Blind person’s allowance	£1,800	+£90	£1,890

How is your gross salary calculated?

Gross Salary - Tax free Allowances = Total taxable

Total taxable x Tax rate (% 10, 20 or 40) = Tax paid

Total taxable - Tax paid - NI = Net Salary

National Insurance Contributions & Rates 2009 - 2010

2009-05-03T07:38:00.000-07:00

You pay National Insurance contributions (NICs) in the UK to build up your entitlement to certain social security benefits, including the State Pension. The type and level of NIC you pay depends on how much you earn and whether you're employed or self employed. You stop paying NICs in the year you reach State Pension age.

National Insurance contributions

£ per week (unless stated)	2008-09	Change	2009-10
Lower earnings limit (primary Class 1)	£90	+£5	£95
Upper earnings limit (primary Class 1)	£770	+£74	£844
Upper accruals point	n/a	n/a	£770
Primary threshold	£105	+£5	£110
Secondary threshold	£105	+£5	£110
Employees’ primary Class 1 rate between primary threshold and upper earnings limit	11%	-	11%
Employees’ primary Class 1 rate above upper earnings limit	1%	-	1%
Employees’ contracted-out rebate - salary-related schemes	1.6%	-	1.6%
Employees’ contracted-out rebate - money-purchase schemes	1.6%	-	1.6%
Married women’s reduced rate between primary threshold and upper earnings limit	4.85%	-	4.85%
Married women’s rate above upper earnings limit	1%	-	1%
Employers’ secondary Class 1 rate above secondary threshold	12.8%	-	12.8%
Employers’ contracted-out rebate, salary-related schemes	3.7%	-	3.7%
Employers’ contracted-out rebate, money-purchase schemes	1.4%	-	1.4%
Class 2 rate	£2.30	+£0.10	£2.40
Class 2 small earnings exception (per year)	£4,825	+£250	£5,075
Special Class 2 rate for share fishermen	£2.95	+£0.10	£3.05
Special Class 2 rate for volunteer development workers	£4.50	+£0.25	£4.75
Class 3 rate (per week)	£8.10	+£3.95	£12.05
Class 4 lower profits limit (per year)	£5,435	+£280	£5,715
Class 4 upper profits limit (per year)	£40,040	+£3,835	£43,875
Class 4 rate between lower profits limit and upper profits limit	8%	-	8%
Class 4 rate above upper profits limit	1%	-	1%

£50000 annual salary after tax

2009-05-03T07:33:00.001-07:00

How much is £50000 annual salary after tax (net salary)?

£50000 a year (pa) gross salary gives you a net pay of £2,984 month salary after all UK income tax and national insurance payments in 2009-2010 tax period.