Fast, effortless and 100% online.
Wondering how much you really earn after tax? Use our salary after tax calculator to quickly calculate how much you pay in taxes as well as your take home pay!
There are two main components that are taken off your gross pay –
income tax and national insurance contributions made by your employer.
In your case when you earn £49,000 yearly:
You pay no income tax on first £12,570 that you make
You pay £7,286 at basic income tax rate (20%) on the next £36,430
No contributions on the first £11,908 that you make
You pay £4,722 in contributions (at 12.73%) on the next £37,092 that you make
On top of these, your employer will also pay £5,119 of additional NI contributions, but these don’t come out of your salary. Your employer has to cover them.
When you earn money over a certain threshold, you have to pay Income Tax and National Insurance. The current threshold is £12,570.
If you’re employed and you get paid a salary every month, you’re taxed by a system called Pay As You Earn (PAYE). With PAYE, Income Tax and National Insurance are automatically deducted from your salary before it hits your bank account. This is the same if you’re on an hourly rate – your employer pretty much does all the groundwork!
When you’re self-employed, the system works a little differently. You have to file a tax return to declare your earnings and then file National Insurance and Income Tax manually on the day of the tax return deadline. When you pay online, this deadline is 31st January.
When you earn money from both employment and other sources (e.g. you rent out a room in the house you own or have a side business), you’ll owe tax on the total amount.
If you’re PAYE, chances are more will be deducted from your salary than just National Insurance and Income Tax (can’t catch a break, we know 😮💨) You may have pension contributions, student loan repayments or any other workplace benefits being deducted from your monthly pay.
Our calculator shows you simply how much tax is deducted based on what you earn – but unfortunately we can’t calculate your perkbox membership or childcare vouchers.
Is water wet? Yes, there are more taxes to pay than just National Insurance and Income Tax – plenty more. But the good thing is you probably won’t be liable for all of them – taxes you may owe depend on the source of your untaxed income.
Some examples are:
Our calculator is really easy to use:
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