Salary Calculator will give you an indication of how much income tax, national insurance and other deductions you should be paying on your salary. The calculations are based on the Inland Revenue figures for the tax year 2011/2012 and designed to give you a guide as to how your salary is broken down.
The individual personal allowance for the tax year 2011/2012 is £7,475 (2010/2011 £6,475). Other allowances for individuals and couples include married couples allowance where the elder partner was born before 6th April 1935. Also there is a blind persons allowance for individuals registered and certified blind in the UK. See the Tax Glossary for further explanation.
Other features of Salary Calculator include repayment of a student loan and deferment of national insurance. Repayment of a student loan will start when the salary of an individual is greater than £15,000 a year (£1,250 a month or £288 a week ).
The tax year in the UK operates from 6th April to the 5th April the following year. For a monthly payroll, April would be month 1 and March would be month 12.
Almost everyone who lives in the UK is entitled to the individual personal allowance. For the 2011/2012 tax year the default amount is £7475 of income you can receive before having to pay income tax although this depends on other factors including other personal allowances and how much you earn. If you earn over £100,000 these allowances are £0.
The Government encourages tax payers to save for retirement by giving tax relief on pension contributions. Higher rate tax payers who make personal contributions into pension schemes should check they are receiving the correct tax relief,as personal contributions are usually paid net of basic rate tax.
Is available to individuals aged 65 and over but is restricted and reduced when total income exceeds certain threshold limits. For the 2011/2012 tax year this threshold is £24,000