iCalculator UK PAYE Calculator is updated for the 2012- 2012 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.
How to reduce your National Insurance Contributions (NIC's)
Ever thought about how you could reduce the amount you pay in National Insurance Contributions (NIC's)? Haven't we all.
National Insurance Contributions (NIC's) are calculated using specific NIC bands. NIC's are calculated using a percentage of pay, percentages paid are dependant on the amount you earn and your ircumstances.
There are a number of ways in which you can legally reduce the amount you contribute to National insurance.
- Pay into a Company Pension Scheme. Most employers now provide a company pension scheme that can be paid into directly from your salary. The amount you pay will be tax deductable (caveats apply). In addition to reducing the amount you spend on National Insurance, you will also receive an additional 20% from HMRC (recoverable). Pensions are increasingly well supported by the UK Government with the continually extending lifespan of the general population. Pensions afford an excellent means of reducing your National Insurance payments as well as providing financial security in the future.
- Consider Trading as a sole trader or partnership. This is particularly beneficail if you are working as a contractor (another option for contractors is to use the services of an Umbrella Company)
- Ask you employer to reduce your salary and pay a bonus.
- If you have children, seriously consider child care provision, the Child Care Voucher Scheme is a good place to start.
Income, Tax Allowances and your Pay - Further Reading.
