Bookkeeper near Yeovil providing accounting and bookkeeping services to Yeovil, Sherborne, Crewkerne, Somerton, Wincanton and surrounding areas of South Somerset and West Dorset.

Tax and National Insurance Calculator

For tax years from 2011/12 until 2020/21

    Select the tax year

£ Enter employee's annual salary here.

Enter employee's tax code here. *
*HINT: If you are not sure what employee's tax code is, and employee is under 65 years old, the most likely tax code in the 2017/18 tax year is 1150L. In the 2016/17 tax year 1100L was the standard tax code, while in the 2015/16 tax year it was 1060L

Here is the breakdown of the employee's monthly salary:

:this is the employee's monthly take-home pay

:this is the employee's Class 1 National Insurance contribution deducted from gross pay

:this is the monthly Class 1 employer's National Insurance payable by the employer in addition to the gross pay

:this is the employee's monthly income tax deduction from gross pay

Since April 2017 Scotland has set its own tax rates. Do not use this calculator if the employee's main residence is in Scotland.

This calculator assumes that the employee's National Insurance category is 'A', the standard letter for employees between ages 16 and 65 who have not contracted out of the state pension. It also assumes that the employee receives the salary monthly and that the tax code has not changed during the tax year. If the employee is over the state retirement age, or is aged under 16 years, s/he does not pay any National Insurance contributions.

If the employee's salary is over £100,000 then the tax free personal allowance associated with the tax code is reduced by £1 for every £2 that the salary exceeds the £100,000 threshold. This calculator will alert you if the salary exceeds this threshold and will notify you of how much tax free allowance remains.

The calculator assumes the employee is not paying any student loan repayments, is contributing nothing to an approved payroll giving scheme and has no other deductions from payroll.

A monthly period for National Insurance is assumed. If the employee is a company director s/he will have an annual National Insurance period and the National Insurance payments will be different from those given above unless the director has chosen to pay his National Insurance monthly as though s/he were a normal employee.

This calculator also assumes that the employee has received the same salary in all earlier months of this tax year and that the employee's salary was not temporarily suspended in favour of statutory sick pay, maternity pay or other taxable benefit distributed via payroll. No account is taken of bonus payments nor of irregular overtime pay, nor of any salary sacrifice arrangements nor of any benefits in kind that are processed through the payroll. If the employee has only been working for part of the tax year the tax deductions will be lower than that given above (unless s/he received taxable benefits in excess of what s/he now earns as salary).

If the employee was a member of an approved contracted-out pension scheme (Tax Years 2015/16 or earlier) then the take-home pay, income tax deductions and National Insurance deductions will differ from the figures generated by this calculator. Note: the right of employees paying into private pension schemes to contract out and pay reduced National Insurance contributions was terminated in April 2016. From 2016/17 onwards all employees must pay the full National Insurance rate on their earnings.

This calculation may not give the correct National Insurance payable where an employee has more than one job and has been allowed by HMRC to defer National Insurance contributions from one of his jobs. This may happen where the total earnings from both jobs combined is above the Upper Earning Limit (UEL). In this case employee National Insurance is deducted at the lower rate of 2% on one of the jobs (i.e. at the rate normally applicable to earnings above the UEL).

The calculator gives expected monthly tax and National Insurance deductions for the selected tax year. Actual amounts of tax due in any month may vary slightly due to small adjustments between months that take place over the tax year. An "exact" calculation in which annual tax due is exactly divided by 12 so that no adjustments are needed between months may yield marginally different values.

This calculator is only intended to give a calculation of tax and National Insurance under a simplified set of circumstances. Four Elms Bookkeeping accepts no liability for the use of output generated by this calculator.

For help with payroll contact Four Elms Bookkeeping on 01935 850807.

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