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 2019 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.

Boris Johnson tax Calculator
£40,000.00 Salary Comparison
WhatCurrent (2019)Boris £80k Higher Rate ThresholdiCalculator £30k Personal Allowance
Net Pay29350.8829350.8832850.88
Difference n/a03500
Take Home73.38%73.38%82.13%

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:

  1. Annual Salary before tax: £40,000.00
  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)

2019 Salary Example for £40,000.00 (Current)

£40,000.00 Salary Example 2019/20 Tax Year
YearlyMonthly4 Weekly2 WeeklyWeeklyDailyHourly%1
Gross Income40,000.003,333.333,076.921,538.46769.23158.1021.98100.00%
Adjusted Gross Income238,000.003,166.672,923.081,461.54730.77150.2020.8895.00%
Tax Free Personal Allowance12,500.001,041.67961.54480.77240.3849.416.8731.25%
Company Pension: Employee2,000.00166.67153.8576.9238.467.911.105.00%
Company Pension: Employer1,200.00100.0092.3146.1523.084.740.663.00%
Taxable Pay25,500.002,125.001,961.54980.77490.38100.7914.0163.75%
Tax Due [PAYE]5,100.00425.00392.31196.1598.0820.162.8012.75%
National Insurance3,549.12295.76273.01136.5068.2514.031.958.87%
Total Pay Deductions10,649.12887.43819.16409.58204.7942.095.8526.62%
Net Pay29,350.882,445.912,257.761,128.88564.44116.0116.1373.38%

Employers NIC Contribution4,081.49340.12313.96156.9878.4916.132.2410.20%
Salary Package [Cost of Employee]45,281.493,773.463,483.191,741.60870.80178.9824.88113.20%

1 Percentage expressed in relation to Gross Income [£38,000.00].

2019 Salary Example for £40,000.00 (Planned by Boris Johnson)

£40,000.00 Salary Example 2019/20 Tax Year (Planned by Boris Johnson)
YearlyMonthly4 Weekly2 WeeklyWeeklyDailyHourly%1
Gross Income40,000.003,333.333,076.921,538.46769.23158.1021.98100.00%
Adjusted Gross Income238,000.003,166.672,923.081,461.54730.77150.2020.8895.00%
Tax Free Personal Allowance12,500.001,041.67961.54480.77240.3849.416.8731.25%
Company Pension: Employee2,000.00166.67153.8576.9238.467.911.105.00%
Company Pension: Employer1,200.00100.0092.3146.1523.084.740.663.00%
Taxable Pay25,500.002,125.001,961.54980.77490.38100.7914.0163.75%
Tax Due [PAYE]5,100.00425.00392.31196.1598.0820.162.8012.75%
National Insurance3,549.12295.76273.01136.5068.2514.031.958.87%
Total Pay Deductions10,649.12887.43819.16409.58204.7942.095.8526.62%
Net Pay29,350.882,445.912,257.761,128.88564.44116.0116.1373.38%

Employers NIC Contribution4,081.49340.12313.96156.9878.4916.132.2410.20%
Salary Package [Cost of Employee]45,281.493,773.463,483.191,741.60870.80178.9824.88113.20%

1 Percentage expressed in relation to Gross Income [£38,000.00].

2019 Salary Example for £40,000.00 (Suggested by iCalculator)

£40,000.00 Salary Example 2019/20 Tax Year (Suggested by iCalculator)
YearlyMonthly4 Weekly2 WeeklyWeeklyDailyHourly%1
Gross Income40,000.003,333.333,076.921,538.46769.23158.1021.98100.00%
Adjusted Gross Income238,000.003,166.672,923.081,461.54730.77150.2020.8895.00%
Tax Free Personal Allowance30,000.002,500.002,307.691,153.85576.92118.5816.4875.00%
Company Pension: Employee2,000.00166.67153.8576.9238.467.911.105.00%
Company Pension: Employer1,200.00100.0092.3146.1523.084.740.663.00%
Taxable Pay8,000.00666.67615.38307.69153.8531.624.4020.00%
Tax Due [PAYE]1,600.00133.33123.0861.5430.776.320.884.00%
National Insurance3,549.12295.76273.01136.5068.2514.031.958.87%
Total Pay Deductions7,149.12595.76549.93274.97137.4828.263.9317.87%
Net Pay32,850.882,737.572,526.991,263.50631.75129.8518.0582.13%

Employers NIC Contribution4,081.49340.12313.96156.9878.4916.132.2410.20%
Salary Package [Cost of Employee]45,281.493,773.463,483.191,741.60870.80178.9824.88113.20%

1 Percentage expressed in relation to Gross Income [£38,000.00].

Further Reading

Boris Johnsons Plan for changes to the Higher Rate Tax Threshold

Join the Discussion on Facebook, share your thoughts and feelings on Boris' plan.