UK PAYE Income Calculator 2012/2013

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iCalculator UK PAYE Calculator is updated for the 2012 - 2013 tax year. You can calculate your take home pay based of your annual income and include tax deductable elements such as pensions and student loans.

iCalculator also provides historical UK PAYE figures so you can review how much tax you have paid in previous tax years.

See the guide below for specific information on each element that is taken into account when calculating your take home pay.

Employers National Insurance Contributions

What are Employers National Insurance Contributions and how are Employers National Insurance Contributions calculated?

Suprisingly, not all people who are employed by a company are aware that their employers pay contributions towards their National insurance on their behalf.

This is one reason why some employers elect to use contractors and employ them through an umbrella company, particularly when using temporary staff or augmenting their workforce for a specific project etc..

What are Employers National Insurance Contributions

National Insurance Payamnets (NIC's) are a two part payment, the first element being taken from the employee and the second from the employer. Both parts are calulated using a perntage of your salary.
Specific National insurance rates vary depending on the amount of money you earn.

Although both Employee and Employer NIC's are deducted directly from wages, only the employee portion of the NIC's payment is eligable for tax relief. There is no tax relief afforded to Employer national insurance contributions

Employers NIC's are not normally specified on an individuals wageslip so most will be unaware of how much a company is contributing towards their national insurance contributions on their behalf.

There are a number of ways of reducing the amount of National Insurnace Contributions - see the article here

How are Employers National Insurance Contributions (NIC's) calculated?

Employers National Insurance Contributions (NIC's) are calculated based on the National Insurance Contribution (NIC) category allocated to the employee.

The current rates for 2011/2012 are shown below.

NICs category letter Earnings at or above LEL up to and including ST Earnings above ST up to and including PT Earnings above PT up to and including UAP Earnings above UAP up to and including UEL Balance of earnings above UEL NICs rebate on earnings above LEL, up to and including ST
A 0% 13.80% 13.80% 13.80% 13.80% N/A
B 0% 13.80% 13.80% 13.80% 13.80% N/A
C 0% 13.80% 13.80% 13.80% 13.80% N/A
D 0% 10.1% 10.10% 13.80% 13.80% 3.70%
E 0% 10.10% 10.10% 13.80% 13.80% 3.70%
F 0% 12.40% 12.40% 13.80% 13.80% 1.40%
G 0% 12.40% 12.40% 13.80% 13.80% 1.40%
J 0% 13.80% 13.80% 13.80% 13.80% N/A
L 0% 10.10% 10.10% 13.80% 13.80% 3.70%
S 0% 12.40% 12.40% 13.80% 13.80% 1.40%


Income, Tax Allowances and your Pay - Further Reading.

Useful References