Boris Johnson Tax Calculator - £ 25,000.00 Salary Example (£25K Salary)

This Salary and Tax Calculator is provided to illustrate how Boris Johnsons planned changes to the higher Rate Income Tax Threshold will affect a £ 25,000.00 Salary (£25K Salary). The illustration also includes an overview of a current 2023 salary example for £ 25,000.00 and an salary example for £ 25,000.00 if the personal allowance were to be increase to £30k (a solution which would affect all tax ayers, not just those who earner over £50k.

£ 25,000.00 Salary Comparison

What	Current (2019)	Boris £80k Higher Rate Threshold	iCalculator™ £30k Personal Allowance
Net Pay	17185.84	17160.88	16410.88
Difference	n/a	-24.959999999999	-774.96
Take Home	68.74%	68.64%	65.64%

You can see a detailed salary overview for each of these calculations below.

About the Boris Johnson Salary Examples

In order to provide a like-for-like salary comparison against our three tax scenarios, we have used the following defaults:

1. Annual Salary before tax: £ 25,000.00
2. The individual is part of a company pension scheme
   1. An Employer Pension Contribution of 5% has been applied
   2. An Employee Pension Contribution of 3% has been applied
3. A standard tax code has been used
4. Salary is calculated over a full tax year
5. There are no salary sacrifice options included
6. There are no special National Insurance Contibutions rules /exemptions (Employer or Employee)

2023 Salary Example for £ 25,000.00 (Current)

£ 25,000.00 Salary Example 2023/24 Tax Year

	Yearly	Monthly	4 Weekly	2 Weekly	Weekly	Daily	Hourly	%1
Gross Income	25,000.00	2,083.33	1,923.08	961.54	480.77	98.81	13.74	100.00%
Adjusted Gross Income2	23,750.00	1,979.17	1,826.92	913.46	456.73	93.87	13.05	95.00%
Company Pension: Employee	1,250.00	104.17	96.15	48.08	24.04	4.94	0.69	5.00%
Company Pension: Employer	750.00	62.50	57.69	28.85	14.42	2.96	0.41	3.00%
Taxable Pay	23,750.00	1,979.17	1,826.92	913.46	456.73	93.87	13.05	95.00%
Tax Due [PAYE]	4,750.00	395.83	365.38	182.69	91.35	18.77	2.61	19.00%
National Insurance	1,814.16	151.18	139.55	69.78	34.89	7.17	1.00	7.26%
Total Pay Deductions	7,814.16	651.18	601.09	300.54	150.27	30.89	4.29	31.26%
Net Pay	17,185.84	1,432.15	1,321.99	660.99	330.50	67.93	9.44	68.74%
Employers NIC Contribution	2,086.28	173.86	160.48	80.24	40.12	8.25	1.15	8.35%
Salary Package [Cost of Employee]	27,836.28	2,319.69	2,141.25	1,070.63	535.31	110.02	15.29	111.35%

¹ Percentage expressed in relation to Gross Income [£ 23,750.00].

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2023 Salary Example for £ 25,000.00 (Planned by Boris Johnson)

£ 25,000.00 Salary Example 2023/24 Tax Year (Planned by Boris Johnson)

	Yearly	Monthly	4 Weekly	2 Weekly	Weekly	Daily	Hourly	%1
Gross Income	25,000.00	2,083.33	1,923.08	961.54	480.77	98.81	13.74	100.00%
Adjusted Gross Income2	23,750.00	1,979.17	1,826.92	913.46	456.73	93.87	13.05	95.00%
Company Pension: Employee	1,250.00	104.17	96.15	48.08	24.04	4.94	0.69	5.00%
Company Pension: Employer	750.00	62.50	57.69	28.85	14.42	2.96	0.41	3.00%
Taxable Pay	23,750.00	1,979.17	1,826.92	913.46	456.73	93.87	13.05	95.00%
Tax Due [PAYE]	4,750.00	395.83	365.38	182.69	91.35	18.77	2.61	19.00%
National Insurance	1,839.12	153.26	141.47	70.74	35.37	7.27	1.01	7.36%
Total Pay Deductions	7,839.12	653.26	603.01	301.50	150.75	30.98	4.31	31.36%
Net Pay	17,160.88	1,430.07	1,320.07	660.03	330.02	67.83	9.43	68.64%
Employers NIC Contribution	2,114.99	176.25	162.69	81.35	40.67	8.36	1.16	8.46%
Salary Package [Cost of Employee]	27,864.99	2,322.08	2,143.46	1,071.73	535.87	110.14	15.31	111.46%

¹ Percentage expressed in relation to Gross Income [£ 23,750.00].

2023 Salary Example for £ 25,000.00 (Suggested by iCalculator)

£ 25,000.00 Salary Example 2023/24 Tax Year (Suggested by iCalculator)

	Yearly	Monthly	4 Weekly	2 Weekly	Weekly	Daily	Hourly	%1
Gross Income	25,000.00	2,083.33	1,923.08	961.54	480.77	98.81	13.74	100.00%
Adjusted Gross Income2	23,750.00	1,979.17	1,826.92	913.46	456.73	93.87	13.05	95.00%
Company Pension: Employee	1,250.00	104.17	96.15	48.08	24.04	4.94	0.69	5.00%
Company Pension: Employer	750.00	62.50	57.69	28.85	14.42	2.96	0.41	3.00%
Taxable Pay	23,750.00	1,979.17	1,826.92	913.46	456.73	93.87	13.05	95.00%
Tax Due [PAYE]	5,500.00	458.33	423.08	211.54	105.77	21.74	3.02	22.00%
National Insurance	1,839.12	153.26	141.47	70.74	35.37	7.27	1.01	7.36%
Total Pay Deductions	8,589.12	715.76	660.70	330.35	165.18	33.95	4.72	34.36%
Net Pay	16,410.88	1,367.57	1,262.38	631.19	315.59	64.87	9.02	65.64%
Employers NIC Contribution	2,114.99	176.25	162.69	81.35	40.67	8.36	1.16	8.46%
Salary Package [Cost of Employee]	27,864.99	2,322.08	2,143.46	1,071.73	535.87	110.14	15.31	111.46%

¹ Percentage expressed in relation to Gross Income [£ 23,750.00].

Further Reading

Boris Johnsons Plan for changes to the Higher Rate Tax Threshold

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