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Boris Johnson Tax Calculator - £ 40,000.00 Salary Example (£40K 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 £ 40,000.00 Salary (£40K Salary). The illustration also includes an overview of a current 2023 salary example for £ 40,000.00 and an salary example for £ 40,000.00 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.
| What | Current (2019) | Boris £80k Higher Rate Threshold | iCalculator™ £30k Personal Allowance |
|---|---|---|---|
| Net Pay | 26775.84 | 26850.88 | 23250.88 |
| Difference | n/a | 75.040000000001 | -3524.96 |
| Take Home | 66.94% | 67.13% | 58.13% |
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:
- Annual Salary before tax: £ 40,000.00
- The individual is part of a company pension scheme
- An Employer Pension Contribution of 5% has been applied
- An Employee Pension Contribution of 3% has been applied
- A standard tax code has been used
- Salary is calculated over a full tax year
- There are no salary sacrifice options included
- There are no special National Insurance Contibutions rules /exemptions (Employer or Employee)
2023 Salary Example for £ 40,000.00 (Current)
| Yearly | Monthly | 4 Weekly | 2 Weekly | Weekly | Daily | Hourly | %1 | |
|---|---|---|---|---|---|---|---|---|
| Gross Income | 40,000.00 | 3,333.33 | 3,076.92 | 1,538.46 | 769.23 | 158.10 | 21.98 | 100.00% |
| Adjusted Gross Income2 | 38,000.00 | 3,166.67 | 2,923.08 | 1,461.54 | 730.77 | 150.20 | 20.88 | 95.00% |
| Company Pension: Employee | 2,000.00 | 166.67 | 153.85 | 76.92 | 38.46 | 7.91 | 1.10 | 5.00% |
| Company Pension: Employer | 1,200.00 | 100.00 | 92.31 | 46.15 | 23.08 | 4.74 | 0.66 | 3.00% |
| Taxable Pay | 38,000.00 | 3,166.67 | 2,923.08 | 1,461.54 | 730.77 | 150.20 | 20.88 | 95.00% |
| Tax Due [PAYE] | 7,700.00 | 641.67 | 592.31 | 296.15 | 148.08 | 30.43 | 4.23 | 19.25% |
| National Insurance | 3,524.16 | 293.68 | 271.09 | 135.54 | 67.77 | 13.93 | 1.94 | 8.81% |
| Total Pay Deductions | 13,224.16 | 1,102.01 | 1,017.24 | 508.62 | 254.31 | 52.27 | 7.27 | 33.06% |
| Net Pay | 26,775.84 | 2,231.32 | 2,059.68 | 1,029.84 | 514.92 | 105.83 | 14.71 | 66.94% |
| Employers NIC Contribution | 4,052.78 | 337.73 | 311.75 | 155.88 | 77.94 | 16.02 | 2.23 | 10.13% |
| Salary Package [Cost of Employee] | 45,252.78 | 3,771.07 | 3,480.98 | 1,740.49 | 870.25 | 178.86 | 24.86 | 113.13% |
1 Percentage expressed in relation to Gross Income [£ 38,000.00].
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2023 Salary Example for £ 40,000.00 (Planned by Boris Johnson)
| Yearly | Monthly | 4 Weekly | 2 Weekly | Weekly | Daily | Hourly | %1 | |
|---|---|---|---|---|---|---|---|---|
| Gross Income | 40,000.00 | 3,333.33 | 3,076.92 | 1,538.46 | 769.23 | 158.10 | 21.98 | 100.00% |
| Adjusted Gross Income2 | 38,000.00 | 3,166.67 | 2,923.08 | 1,461.54 | 730.77 | 150.20 | 20.88 | 95.00% |
| Company Pension: Employee | 2,000.00 | 166.67 | 153.85 | 76.92 | 38.46 | 7.91 | 1.10 | 5.00% |
| Company Pension: Employer | 1,200.00 | 100.00 | 92.31 | 46.15 | 23.08 | 4.74 | 0.66 | 3.00% |
| Taxable Pay | 38,000.00 | 3,166.67 | 2,923.08 | 1,461.54 | 730.77 | 150.20 | 20.88 | 95.00% |
| Tax Due [PAYE] | 7,600.00 | 633.33 | 584.62 | 292.31 | 146.15 | 30.04 | 4.18 | 19.00% |
| National Insurance | 3,549.12 | 295.76 | 273.01 | 136.50 | 68.25 | 14.03 | 1.95 | 8.87% |
| Total Pay Deductions | 13,149.12 | 1,095.76 | 1,011.47 | 505.74 | 252.87 | 51.97 | 7.22 | 32.87% |
| Net Pay | 26,850.88 | 2,237.57 | 2,065.45 | 1,032.73 | 516.36 | 106.13 | 14.75 | 67.13% |
| Employers NIC Contribution | 4,081.49 | 340.12 | 313.96 | 156.98 | 78.49 | 16.13 | 2.24 | 10.20% |
| Salary Package [Cost of Employee] | 45,281.49 | 3,773.46 | 3,483.19 | 1,741.60 | 870.80 | 178.98 | 24.88 | 113.20% |
1 Percentage expressed in relation to Gross Income [£ 38,000.00].
2023 Salary Example for £ 40,000.00 (Suggested by iCalculator)
| Yearly | Monthly | 4 Weekly | 2 Weekly | Weekly | Daily | Hourly | %1 | |
|---|---|---|---|---|---|---|---|---|
| Gross Income | 40,000.00 | 3,333.33 | 3,076.92 | 1,538.46 | 769.23 | 158.10 | 21.98 | 100.00% |
| Adjusted Gross Income2 | 38,000.00 | 3,166.67 | 2,923.08 | 1,461.54 | 730.77 | 150.20 | 20.88 | 95.00% |
| Company Pension: Employee | 2,000.00 | 166.67 | 153.85 | 76.92 | 38.46 | 7.91 | 1.10 | 5.00% |
| Company Pension: Employer | 1,200.00 | 100.00 | 92.31 | 46.15 | 23.08 | 4.74 | 0.66 | 3.00% |
| Taxable Pay | 38,000.00 | 3,166.67 | 2,923.08 | 1,461.54 | 730.77 | 150.20 | 20.88 | 95.00% |
| Tax Due [PAYE] | 11,200.00 | 933.33 | 861.54 | 430.77 | 215.38 | 44.27 | 6.15 | 28.00% |
| National Insurance | 3,549.12 | 295.76 | 273.01 | 136.50 | 68.25 | 14.03 | 1.95 | 8.87% |
| Total Pay Deductions | 16,749.12 | 1,395.76 | 1,288.39 | 644.20 | 322.10 | 66.20 | 9.20 | 41.87% |
| Net Pay | 23,250.88 | 1,937.57 | 1,788.53 | 894.26 | 447.13 | 91.90 | 12.78 | 58.13% |
| Employers NIC Contribution | 4,081.49 | 340.12 | 313.96 | 156.98 | 78.49 | 16.13 | 2.24 | 10.20% |
| Salary Package [Cost of Employee] | 45,281.49 | 3,773.46 | 3,483.19 | 1,741.60 | 870.80 | 178.98 | 24.88 | 113.20% |
1 Percentage expressed in relation to Gross Income [£ 38,000.00].
Further Reading
Boris Johnsons Plan for changes to the Higher Rate Tax Threshold
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