by Simon Bodych
UK salary calculator — methodology (2026/27)
Educational model — not HMRC or payroll software.
PAYE employee
- Personal Allowance £12,570 (frozen to 5 April 2031); tapered by £1 per £2 of income above £100,000 (fully withdrawn at £125,140).
- rUK rates (England / Wales / NI): 20 % (£12,571–£50,270), 40 % (£50,271–£125,140), 45 % (above £125,140).
- Scottish rates 2026/27 (Scottish Budget, 13 January 2026): starter 19 %, basic 20 %, intermediate 21 %, higher 42 %, advanced 45 %, top 48 %.
- Class 1 NIC (category A): employee 8 % between PT £12,570 and UEL £50,270, then 2 %; employer 15 % above Secondary Threshold £5,000.
- Employment Allowance £10,500 per year (the £100k eligibility cap was removed from April 2025); reduces employer Class 1 NIC when employer cost is included.
- Student loans: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 (first repayments from April 2026); rate 9 %. Postgraduate 6 % above £21,000.
- Auto-enrolment qualifying earnings band £6,240–£50,270; minimum 5 % employee / 3 % employer (8 % total).
- Tax-code directives supported: standard (1257L), S/C prefix (Scottish/Welsh), K (negative PA), 0T, BR, D0, D1, D2, NT and the W1/M1/X emergency flag.
Primary references: HMRC — Rates and thresholds 2026/27, Budget 2025 OOTLAR Annex A, Scottish Income Tax 2026/27, TPR — AE thresholds 2026/27.
Self-employed / sole trader
- Profit = revenue − expenses; Income Tax on profit using the same bands as PAYE (with PA taper above £100,000).
- Class 4 NIC: 6 % on profits between LPL £12,570 and UPL £50,270, then 2 % above £50,270.
- Class 2 NIC: mandatory Class 2 was abolished from April 2024; voluntary only at £3.65/week when profit is below the Small Profits Threshold £7,105 (used to preserve NI record).
- Student and postgraduate loans use the same thresholds as PAYE, assessed on annual profit.
HMRC — Self-employed NIC rates, ATT — 2026/27 tax year updates.
