Where the money goes
| Year | Month | Week | |
|---|---|---|---|
| Salary | £25,000 | £2,083 | £481 |
| Income Tax | £2,486 | £207 | £48 |
| National Insurance | £994 | £83 | £19 |
| Take-home pay | £21,520 | £1,793 | £414 |
Out of every £100 you earn, you keep about £86. Your payslip may differ by a few pounds because payroll works each pay period separately.
Income Tax band by band
The first £12,570 is your tax-free Personal Allowance. Income Tax is charged on the remaining £12,430.
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| Tax-free allowance | 0% | £12,570 | £0 |
| Basic rate | 20% | £12,430 | £2,486 |
National Insurance
Employees pay Class 1 National Insurance of 8% on earnings between £12,570 and £50,270 a year, and 2% above that. On £25,000 that comes to £994 a year, or £83 a month. National Insurance is the same in every part of the UK, and you stop paying it once you reach State Pension age.
£25,000 after tax in Scotland
Scotland sets its own Income Tax bands. On £25,000 a Scottish taxpayer pays £2,446 Income Tax and takes home £21,559 a year (£1,797 a month), £40 more than in the rest of the UK.
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| Tax-free allowance | 0% | £12,570 | £0 |
| Starter rate | 19% | £3,967 | £754 |
| Basic rate | 20% | £8,463 | £1,693 |
With a pension or student loan
Most employees pay into a workplace pension, and many repay a student loan. This is how they change take-home pay on £25,000. A salary sacrifice pension is taken before tax and National Insurance, so it costs you less than its face value.
| Pension | Student loan | Take-home a year | A month | |
|---|---|---|---|---|
| No pension or student loan | £0 | £0 | £21,520 | £1,793 |
| 5% pension by salary sacrifice | £1,250 | £0 | £20,620 | £1,718 |
| Plan 2 student loan | £0 | £0 | £21,520 | £1,793 |
| Plan 5 student loan | £0 | £0 | £21,520 | £1,793 |
| 5% pension and Plan 2 loan | £1,250 | £0 | £20,620 | £1,718 |
Your tax rates
You are a basic rate taxpayer. Each extra £100 of salary costs you 28% in Income Tax and National Insurance (20% tax and 8% NI), so you keep about £72.
Per hour, day and week
| Before tax | After tax | |
|---|---|---|
| Per hour (37.5 hours a week) | £12.82 | £11.04 |
| Per day (5 days a week) | £96.15 | £82.77 |
| Per week | £481 | £414 |
| Per month | £2,083 | £1,793 |
Nearby salaries
| Salary | Take-home a year | A month |
|---|---|---|
| £22,000 after tax | £19,360 | £1,613 |
| £23,000 after tax | £20,080 | £1,673 |
| £24,000 after tax | £20,800 | £1,733 |
| £25,000 | £21,520 | £1,793 |
| £26,000 after tax | £22,240 | £1,853 |
| £27,000 after tax | £22,960 | £1,913 |
| £28,000 after tax | £23,680 | £1,973 |
See every salary from £15,000 to £250,000, or work out any figure with the salary calculator.