How is my take-home pay calculated?

Your take-home pay is your gross salary minus Income Tax, National Insurance, student loan repayments, and pension contributions. The calculator uses HMRC published rates for the 2025/26 tax year and applies the correct tax bands, personal allowance (£12,570), and NI thresholds automatically.

What tax code should I use?

Most employees have tax code 1257L, which gives the standard Personal Allowance of £12,570. You can find your tax code on your payslip, P45, P60, or HMRC online account. If you enter a tax code in the advanced settings, the calculator will adjust your Personal Allowance accordingly.

Which student loan plan am I on?

Plan 1: courses starting before September 2012 (England/Wales) or any time in Scotland/Northern Ireland. Plan 2: courses starting September 2012 onwards (England/Wales). Plan 4: Scotland only. Plan 5: courses starting August 2023 onwards (England/Wales). Postgraduate: Master's or Doctoral loans.

What's the difference between salary sacrifice and relief at source?

Salary sacrifice: your employer deducts pension before calculating tax and NI, so you save on both. Relief at source: pension is deducted from your net pay, and your provider claims basic rate tax relief (20%) from HMRC. Net pay: deducted before tax but after NI. Salary sacrifice typically saves you the most.

Why does my take-home drop sharply between £100k and £125k?

For every £2 you earn over £100,000, you lose £1 of your Personal Allowance. This creates an effective marginal tax rate of 60% in the £100,000–£125,140 range. The calculator's raise insight feature warns you when you're in this zone.

How accurate is this calculator?

The calculator uses the official HMRC rates and thresholds for the 2025/26 tax year. It provides accurate estimates for employed (PAYE) workers but does not account for benefits in kind, multiple employments, or self-employed income. Always verify with HMRC or a qualified tax adviser.

Does this calculator work for self-employed income?

No, this calculator is designed for employed (PAYE) workers. Self-employed individuals pay Class 2 and Class 4 National Insurance at different rates, and tax is collected through Self Assessment rather than PAYE. HMRC provides a separate self-employed tax calculator.

How is employer NI calculated?

For 2025/26, employers pay 15% National Insurance on earnings above the secondary threshold of £5,000 per year. There is no upper limit — employer NI applies to all earnings above the threshold. You can view the employer cost by clicking 'Show employer cost' on your payslip.

Contact

Found a bug? Spotted an inaccurate calculation? Have feedback or a partnership enquiry? We'd love to hear from you. Fill out the form below or email us at hello@mytakehome.co.uk.