Take Home Pay Calculator
Take Home Pay Calculator to Find Your Pay – DNS Accountants
Use DNS Take Home Pay calculator to calculate your take-home pay per paycheck for both hourly and daily jobs after taking into account the deductions for income tax, insurance contributions, employee loans, etc. Using DNS calculator, you can properly calculate and check your gross salary, take-home salary, taxable income, etc.
Features of the Calculator: You can experience multiple features of taking Home Pay Calculator introduced by DNS:
What is Take Home Pay?
The take-home pay is the amount of salary an individual gets post deductions from the employers at the end of each payroll period in their bank account. The payroll period may vary from employer to employer. The take-home pay is subjected to several deductions and the amount received is lower than the headline salary. The amount can be calculated by Take home pay calculator the UK corresponding to deductions such as income tax, insurance contributions, employee loan, etc. is reduced from the gross pay per month to arrive at the net take-home pay. Hence, take-home pay is the money an individual gets paid after all deductions.
How do I calculate my take-home pay?
Few things you need to consider for calculating your take-home pay:
Take Home Pay Calculator initiated by DNS is one of the best paycheck salary calculators in the UK. You can easily calculate your income tax rate along with your take-home salary amount with the help of this easy to use salary tax calculator.
Calculating take-home pay using DNS Calculator
Take Home Pay Calculator - The Easiest Way of Calculating Your Take Home Pay
DNS Calculator is the simplest way to calculate an individual’s take-home salary. The entire process can be completed after filling only 3 fields’ area:
- First, you’re required to mention your income in pounds (£).
- Under the Fixed Value Contract option, you need to choose a daily or hourly rate.
- In the last field, you’ll be asked whether you have a working spouse. You could choose between Yes, No, and N/A options.
Once you fill all these 3 fields just click on submit and you’re done! Now you can see your monthly and yearly take-home payment along with the return value in percentage. This Take Home Salary Calculator is considered as one of the useful and widespread paycheck salary calculators in the UK. The latest version of the calculator “Take Home Pay Calculator UK 2019” has been updated with the latest tax rates, quite handy and you can use it from anywhere using any device with an internet connection.
Income Tax Calculator for Self-Employed
In case you're self-employed it might sometimes be challenging to work out exactly what your take-home pay is once you've covered all your business costs. Although knowing your income is an initial and vital step to deal with any personal obligations you could have. Creating a budget for your business can help you to show how much money your business is making along with how much you're spending on business costs.
A self-employed person can use a salary tax calculator to properly calculate and budget for your tax bill. A Salary after tax calculator can help to figure out the tax and insurance contribution outstanding amount on the salary. This tool can work as an income tax calculator to help you to evaluate how much income tax and National Insurance will be due.
How the HMRC Take Home Pay Calculator Works in the UK?
To understand how the HMRC Take Home Salary Calculator works (https://www.gov.uk/guidance/hmrc-tools-and-calculators), let’s consider an example that will make the concept clearer.
To Begin Calculating the Take Home Pay Amount
- 1. Firstly, the personal allowance is applied to the income of an individual. The way it is applied entirely depends on an individual’s tax-code received from HMRC. The personal allowance is the amount an individual is permitted to earn before tax is payable on the income, in one tax year. In simple words, the personal allowance is more often than not divided into 12 parts and applied monthly for individuals who are paid monthly. The personal allowance is divided into 52 parts and is applied weekly for individuals who are paid weekly. The personal allowance is applied by deducting the appropriate amount of annual personal allowance from the applicable part of the salary. Under PAYE, this process can be a little complex. However, even if an individual is not working for a complete year, the respective individual might still be eligible for the full allowance, hence a tax reimbursement is possible
Once the personal allowance is applied, other allowable costs such as certain pension payments are reduced, and the remaining amount is the taxable income. Tax is applied to the taxable income in bands, for example;
• the basic rate of tax for an individual is 20%
• the higher rate is 40%
• the additional rate is 45% for individuals whose taxable income exceeds £150,000 per annum
- National Insurance is charged individually from PAYE over the whole of the salary subject to thresholds and bands dissimilar from those used for PAYE. Generally, National Insurance is charged against income above £149 per week
Monthly Take Home Pay Calculator
Monthly Take Home Pay Calculator is a unique concept of calculating your take-home pay per paycheck whether you’re doing any hourly based or daily based job in the UK. Take-Home Monthly Pay Calculator of DNS has been updated with the latest tax rates implemented in April 2019 in the UK.
How monthly take-home pay calculator Works?
Let’s understand the take-home pay through the calculation below. As an example, we assume the annual salary of an individual to be £24,000 per annum. Now,
| Particulars | Values |
|---|---|
| Monthly Salary (£24,000/12) | @mdo |
| Tax computation | |
| Income up to Primary threshold | £663 |
| Income subject to National Insurance @ 12% | £1,337 |
| National Insurance contribution | £160 |
| Tax computation | |
| Monthly Salary (£24,000/12) | £2,000 |
| Basic rate tax @ 20% | (£233) |
| National Insurance contribution | (£160) |
| Take home pay | £1,606 |
Personal Savings Allowance
Personal Savings Allowance (PSA) allows the United Kingdom savers to earn up to £1,000 of tax-free interest each year. The level of PSA depends on an individual’s income tax band, as follows:
| Tax band | Personal Savings Allowance |
|---|---|
| Basic rate taxpayer | Up to £1,000 savings – tax-free interest |
| Higher rate taxpayer | Up to £500 savings – tax-free interest |
| Additional rate taxpayer | £0 (no PSA) |
As a result, savings accounts will now pay, instead of net interest which means they don’t deduct income tax at source. Rather, they will report to the Inland Revenue about the specific amount they have paid to whom so that an individual’s tax code can be changed if individuals end up with unsettled income tax on the interest which is more than the Personal Savings Allowance.
Personal Savings Allowance (PSA) can be considered as one of the key factors while calculating an individual's take-home salary. As here the savers do not require to pay any tax on their savings income, so naturally, their status of tax filing would be different than others. As a result, their Take Home Pay Calculation would be different.
Effect on the significance of Cash ISAs
With the introduction of the Personal Savings Allowance, it’s no longer the case where a Cash ISA in general beats non-ISA savings accounts for the reason that the difference in net interest is caused by the subtraction of income tax. With the threshold being set at £1,000 for basic rate tax-payers, individuals will need more than £85,000 in savings in a best-buy 2.42% AER savings account before having to look for income tax protection. Being said that, there are still reasons to consider using the annual ISA allowance as this allowance is a permanent tax cover that adds up each year. In other words, if an individual starts to earn interest above the Personal Savings Allowance (let’s say, a higher-rate taxpayer with more than £50,000 in a 1.45% AER account), under the present guidelines an individual will not be able to transfer that whole amount into an ISA in one go. The PSA is only relevant to taxable savings which means that individuals can keep on subscribing to an ISA while also earning the PSA equivalent of interest in a non-ISA savings account.
Personal PAYE Allowances
| Personal PAYE Allowances | 2018/19 | 2017/18 | Change |
|---|---|---|---|
| Basic | £11,850 | £11,500 | + £350 |
| People born between 6th April 1938 - 5th April 1948 | £11,850 | £11,500 | + £350 |
| People born before 6th April 1938 | £11,850 | £11,500 | + £350 |
| Married Couples Allowance ( if born before 6th April 1935) | £8,695 | £8,445 | + £250 |
| Blind Person's Allowance | £2,390 | £2,320 | + £70 |
| Marriage Allowance* | £1,190 | £1,150 | + £40 |
Tax Brackets
| Tax Rate | 2018/19 | 2017/18 | Change |
|---|---|---|---|
| Basic rate (20%) | £0 - 34,500 | £0 - £33,500 | widened by £1,000 |
| Higher Rate 40% | £34,501 - £150,000 | £33,501 - £150,000 | cut by £1,000 |
| Additional Rate (45%) | £150,001+ | £150,001+ | no change |
Change in take home pay after tax and National Insurance
| Gross Wage | Net Pay 2018/19 | Net Pay 2017/18 | Difference |
| £10,000 | £9,811 | £9,780 | 31 |
| £20,000 | £16,983 | £16,880 | 103 |
| £30,000 | £23,783 | £23,680 | 103 |
| £40,000 | £30,583 | £30,480 | 103 |
| £50,000 | £37,019 | £36,776 | 243 |
| £75,000 | £51,519 | £51,276 | 243 |
| £100,000 | £66,019 | £65,776 | 243 |
| £125,000 | £75,776 | £75,676 | 100 |
| £150,000 | £90,276 | £90,176 | 100 |
Your Tax-Planners – DNS Accountants
DNS Accountants is a skilled taxation and accounts management firm that offers complete range of tax planning services to individuals across the United Kingdom. DNS has a strong track record of supporting individuals to manage and plan their savings. DNS helps individuals manage their tax home pay and file tax returns. DNS is a well-known firm of CA’s or ACA’s with operations in various cities and counties of the United Kingdom. The firm’s learned team focuses on helping people with their tax credits and other services such as bookkeeping, accounts management, self-assessment, business start-up, payroll-management, and taxation advisory. The firm is very ethical & delivers unmatched customer service and consistent support to the clients. At DNS, we are constantly in touch with our clients. DNS Accountants are the best for tax credit support as:
- We offer services at a FIXED price
- Service, Consistency and Transparency – The customers know exactly what they are being billed for
- Certainty on the tax base
- Help with net take home pay calculation
- Reduce the tax base
- Take Home Pay Calculator Bonus
- Take Home Pay Calculator Hourly
Do you want to calculate your take home pay?
Other services
DNS Accountants offers taxation & accounting services to individuals and owner-managed businesses. Our learned team of CAs / ACA and tax accountants helps clients with services ranging from bookkeeping to payroll to tax planning, and filing tax returns. DNS Accountants help clients focus on maximizing their wealth.
Also Read:
Calculate employers National Insurance
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Author
Vidit Agarwal, Marketing Director of DNS Accountants, award winning accountancy firm in London. He comes with a great experience and expertise in IT and Marketing related activities.
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