This tax calculator provides a forecast salary and employers national insurance contributions calculation for the 2017/18 tax year.
The 2017/18 tax calculator includes the tax figures and personal allowances for 2017/18 as outline by George Osborne in his Summer Budget 2015 Speech on the 7th July 2015 - view a full transcript of the speech here, key extracts are shown below the calculator.
- You can also select other tax years, the 2017/18 tax year is the default.
- Note all tax factors for the 2017/18 tax year are currently published, expect updates in the Autumn statement. The 2017/18 Tax Calculator currently provides a 'forecast' for your PAYE, NI and take home salary after tax.
Gov.uk: relevant extracts
The 2017/18 Tax Calculator was published on the 07th October 2016 with tax variables based on the latest confirmed tax thresholds and rates published on Gov.uk. The 2017/18 Tax Calculator is provided to allow iCalculator users to estimate their 2017/18 tax year tax commitments (PAYE, NI, etc.) and Employers to estimate Employers National Insurance Contributions.
The key tax factors included relate to the following extract from Gov.uk Statement:
2017/18 Tax Year: Personal Allowance Change
This measure will reduce income tax for 28.9 million income tax payers in 2017 to 2018, including low and middle income individuals, improving incentives to enter employment and increasing real household disposable incomes. This might feed through to higher consumption or savings in the household sector. Overall employment outcomes will also depend upon other measures announced as well as aggregate labour demand and the performance of the wider economy..
In 2017 to 2018, this measure will benefit 28.9 million individuals of whom 24.1 million will be basic rate taxpayers and 4.5 million are higher rate taxpayers. A basic rate taxpayer will have an average real gain of £56. A higher rate taxpayer will have an average real gain of £233. An additional rate taxpayer will have an average real gain of £110.These above inflation increases will take an additional 424,000 individuals out of income tax altogether in 2017 to 2018 compared to previously announced policy. 1.3m individuals have been taken out of tax as a result of changes announced since 2015 to 2016. 359,000 individuals are taken out of higher rate tax in 2017 to 2018 compared with previously announced policy. 585,000 are taken out of higher rate tax as a result of changes announced since 2015 to 2016.
1.6 million individuals will have an average real loss of £23 in 2017 to 2018.
All taxpayers with income of £123,000 or above in 2017 to 2018 have their personal allowance tapered to zero. Therefore they derive no benefit from the personal allowance increase.
Actual gains for individual taxpayers will vary according to individual circumstances.
Cumulative changes to the personal allowance and higher rate threshold between 2015 to 2016 and 2017 to 2018 mean a typical basic rate taxpayer will have an overall cash gain of £180 and a real terms gain of £166. A typical higher rate taxpayer will have an overall cash gain of £442 and a real terms gain of £399.
Cumulative changes to the personal allowance and higher rate threshold since 2010 to 2011 mean a typical basic rate taxpayer will have an overall cash gain of £1,005 in 2017 to 2018. A typical higher rate taxpayer will have an overall cash gain £1,118 in 2017 to 2018.
This measure is not expected to impact on family formation, stability or breakdown.
The full impact and demographic breakdown of tax redistribution can be viewed on Gov.uk
The changes remain in line with George Osborne's Summer Budget 2015 speech and will likely remain in place despite the change in Chancellor of the Exchequer
George Osborne's Summer Budget 2015 speech: relevant extracts
And that we would raise the threshold at which people pay the higher 40p rate of tax to £50,000.
I am raising the tax-free personal allowance to £11,000 next year.
That's £11,000 you can earn before paying any income tax at all - boosting wages by over £900 in total - and a down payment on our goal of reaching £12,500.
The higher rate threshold currently stands at £42,385.
I am today raising it to £43,000 from next year (2016/17).
It marks a strong start to our commitment to raise the threshold to £50,000, target date: by the end of this parliament (2020, forecast for the next general election is Thursday 7th May 2020).
Despite the continuing flux after Brexit it is reassuring the plan to reduce tax payments in lower bands continues. Reducing tax for lower earners helps to boost local economies and businesses by increasing spending on every day items. The Government needs to sustain this approach to drive greater cash flow within local economies to help boost our wider national economy and grow businesses who in turn can develop international export arms
iCalculator Tax Calculators
The Tax Calculators on iCalculator are updated for the 2016 / 2017 tax year. You can calculate your take home pay based of your gross income, PAYE, NI and tax for 2016 / 2017. Use the simple tax calculator or switch to the advanced tax calculator to review employers national insurance payments, income tax deductions and PAYE tax commitments for 2016.
PAYE and Tax calculations can seem complex, the following are taken into consideration when calculating your salary and take home pay:
Gross Salary | Tax Free Allowance | Taxable Pay | Tax Due | Your National Insurance | Employer National Insurance | Your Pension Contributions | HMRC Pension Contributions | Net Pay
Top Tip: Did you know you can legally reduce your National Insurance bill and increase your take home pay? Read more about Salary Sacrifice
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