Understand
your pay. Keep
more of it.

Most UK workers know their gross salary but not their true take-home pay. The gap between the two is filled by four possible deductions: income tax, National Insurance, a pension contribution, and — for many graduates — a student loan repayment.

In 2026/27, the Personal Allowance remains frozen at £12,570 for the fifth consecutive year. Every £1 of wage growth above this threshold generates extra tax, even without a change in the tax rate. A worker who earned £30,000 in 2021 and now earns £34,000 pays income tax on an additional £4,000 of income compared to five years ago.

National Insurance adds another 8% on earnings between £12,570 and £50,270. Combined with the 20% basic-rate income tax band, the effective marginal rate for most UK employees is 28% — meaning 28p in every £1 earned in the basic-rate band goes to the government before pension or student loan.

Pension contributions change the picture significantly. Salary sacrifice contributions reduce your gross pay before tax and NI are calculated — meaning every £100 you put in costs you around £72 after tax and NI savings. This makes pension saving one of the most tax-efficient things a UK worker can do.

If you are on a student loan plan, your repayment threshold matters. Plan 2 borrowers (who started university between 2012 and 2023) repay 9% on earnings above £27,295. Plan 1 borrowers repay above £24,990. Plan 5 (2023+ starters) repay above £25,000 but for 40 years instead of 30.

Our salary calculator handles all of this automatically. Enter your salary, select your region (England, Scotland, Wales or Northern Ireland) and tax year, add your pension percentage and student loan plan, and you will see an exact monthly and annual breakdown — matched to the same methodology HMRC uses.