The tax calculator will give you an indication of how much income tax you should be paying on your income. The calculations are based on the Inland Revenue rates for the tax year 2010/2011 and designed to provide you with accurate figures from the information you enter.
As well as the personal allowance there are additional tax allowances for people over 65 and blind people, these can be taken into account using the relevant check box below. The National Insurance rate also depends on the type of worker, though most should be covered by this UK PAYE tax calculator.
The UK tax year runs from 6 April to 5 April. So, for a monthly payroll, April will be Month 1 and March is Month 12. Cumulative figures on payroll reports will always relate to the tax year rather than the calendar year.
Personal Allowance Nearly everyone who lives in the UK is entitled to an Income Tax Personal Allowance. This is the amount of income you can receive each year without having to pay tax on it. Depending on your circumstances, you may also be able to claim certain other allowances.
Pension contribution The government encourages you to save for your retirement by giving you tax relief on pension contributions. Tax relief reduces your tax bill or increases your pension fund.
Other allowances If you are self-employed there are various deductions, reliefs and allowances that you can get to reduce your tax bill.
You can deduct much of your business expenditure to work out your profits - but you can't deduct any private expenditure. And you can claim special reliefs for certain 'capital expenditure' - one-off expenditure to buy or improve an asset you keep and use for your business.
Blind Person's allowance If you are certified blind and are on a local authority register of blind persons, or if you live in Scotland or Northern Ireland and are unable to perform any work for which eyesight is essential, you can claim Blind Person's Allowance. If you can't use up some or all of your allowance you may be able to transfer it.
Married couples allowance The age-related Married Couple's Allowance is an amount that we take off your tax bill - so it only applies if you pay tax. If you do not pay tax, or if your tax bill is not high enough to use up all of your Married Couple’s Allowance, you can transfer any unused allowance to your spouse or civil partner if they pay tax.
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Tax Information |