How we calculate your pay.
Rules checked on 23 September 2026. This calculator estimates a full year of employment across the UK, including Scotland, for 6 April 2026 to 5 April 2027. It is an annual planning tool, not payroll software.
The core calculation
We start with annual salary plus bonus, then separate earnings for Income Tax from earnings for National Insurance and student loans. We subtract each cash deduction once. Monthly and weekly figures are the annual estimate divided by 12 and 52; they do not simulate individual pay periods.
We use the standard £12,570 Personal Allowance, including its reduction above £100,000, and the 20%, 40% and 45% Income Tax bands for England, Wales and Northern Ireland. Category A employee NI uses annualised thresholds of £12,570 and £50,270, at 8% and 2%. See HMRC rates and thresholds.
Scottish Income Tax
Select Scotland based on your tax residence, not your workplace. With a full Personal Allowance, the 2026/27 employment-income bands are £12,571–£16,537 at 19%, £16,538–£29,526 at 20%, £29,527–£43,662 at 21%, £43,663–£75,000 at 42%, £75,001–£125,140 at 45%, then 48%. The allowance tapers above £100,000. NI and loan rules are shared across the UK; your loan plan is selected independently.
For relief-at-source pensions, provider relief remains 20%, including for starter-rate taxpayers. Further relief at Scottish rates is shown separately, not added to take-home cash. Sources: Scottish Income Tax rates, Scottish taxpayer status, and Scottish pension relief.
Your pension
Choose salary sacrifice, a net pay arrangement, or relief at source. Pension percentages are gross contributions. They apply to basic salary excluding bonus, or the selected qualifying band of basic salary (£6,240 to £50,270). Employer contributions use the same basis, are added separately and do not reduce your take-home cash. We do not assume any employer NI saving is passed into your pension.
- Salary sacrifice reduces the earnings used for Income Tax, NI and loan deductions.
- Net pay pension contributions reduce Income Tax earnings, but not NI or loan earnings. Any separate HMRC top-up for eligible low earners is excluded.
- Relief at source deducts 80% of your gross contribution from cash and assumes your provider adds basic-rate relief. Any further relief, including an allowance restoration where applicable, is shown separately as a potential annual claim, not added to the bank-account result. The cash estimate assumes no tax-code adjustment for that claim.
We do not calculate pension annual-allowance charges, carry-forward, the money purchase annual allowance, or minimum-wage eligibility. Check your scheme before changing contributions. Sources: pension tax relief, adjusted net income, and workplace pension contributions.
Employee schemes
| Scheme | Income Tax earnings | NI / loan earnings |
|---|---|---|
| SIP partnership shares | Reduced | Reduced |
| SAYE savings | Unchanged | Unchanged |
| GAYE / Payroll Giving | Reduced | Unchanged |
SIP: Equal monthly partnership contributions, limited to the lower of £1,800 a year or 10% of eligible annual salary. We assume eligible salary includes the bonus and is reduced by pension salary sacrifice. Your employer’s definition and deduction period can differ. Matching ratios reflect shares at the same purchase price, up to two matching shares per partnership share. No free or dividend shares, future returns, disposal taxes or early-withdrawal charges are modelled. Full tax advantages normally require a five-year holding period. Sources: SIP overview, employee guide.
SAYE: Up to £500 monthly across contracts, paid from net earnings without upfront tax relief. Savings bonuses, option discounts and investment outcomes at maturity are excluded. Source: HMRC employee share schemes guidance.
GAYE: Enter the pre-tax payroll donation. Income Tax relief is calculated from your actual modelled tax position; NI and loan deductions do not fall. Agency fees and employer matching are excluded. Source: HMRC Payroll Giving.
Student loans
Annual thresholds: Plan 1 £26,900; Plan 2 £29,385; Plan 4 £33,795; Plan 5 £25,000. Undergraduate repayments are 9% above the relevant threshold. A postgraduate loan can run alongside these at 6% above £21,000. We use relevant NI earnings, consistent with HMRC employer guidance. For multiple undergraduate plans, select the one with the lowest threshold. Loan balances, interest, write-offs and pay-period rounding are not modelled. A repayment reduction is not necessarily a lifetime saving.
What this version does not cover
Non-standard or emergency tax codes; benefits in kind; other salary sacrifice benefits; multiple jobs; self-employment; dividends; rental or savings income; marriage allowance; benefit entitlement and the High Income Child Benefit Charge. It also excludes mid-year job changes, overseas residency and directors’ special NI treatment.
Bonuses and irregular pay can materially change actual NI and loan deductions. Salary sacrifice must comply with minimum-wage rules. A negative result means the chosen deductions exceed available cash; it is not a valid payroll arrangement.