Boris Johnson Tax Calculator - £ 42,000.00 Salary Example (£42K 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 £ 42,000.00 Salary (£42K Salary). The illustration also includes an overview of a current 2023 salary example for £ 42,000.00 and an salary example for £ 42,000.00 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.

£ 42,000.00 Salary Comparison

What	Current (2019)	Boris £80k Higher Rate Threshold	iCalculator™ £30k Personal Allowance
Net Pay	27687.84	28142.88	24162.88
Difference	n/a	455.04	-3524.96
Take Home	65.92%	67.01%	57.53%

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: £ 42,000.00
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 £ 42,000.00 (Current)

£ 42,000.00 Salary Example 2023/24 Tax Year

	Yearly	Monthly	4 Weekly	2 Weekly	Weekly	Daily	Hourly	%1
Gross Income	42,000.00	3,500.00	3,230.77	1,615.38	807.69	166.01	23.08	100.00%
Adjusted Gross Income2	39,900.00	3,325.00	3,069.23	1,534.62	767.31	157.71	21.92	95.00%
Company Pension: Employee	2,100.00	175.00	161.54	80.77	40.38	8.30	1.15	5.00%
Company Pension: Employer	1,260.00	105.00	96.92	48.46	24.23	4.98	0.69	3.00%
Taxable Pay	39,900.00	3,325.00	3,069.23	1,534.62	767.31	157.71	21.92	95.00%
Tax Due [PAYE]	8,460.00	705.00	650.77	325.38	162.69	33.44	4.65	20.14%
National Insurance	3,752.16	312.68	288.63	144.31	72.16	14.83	2.06	8.93%
Total Pay Deductions	14,312.16	1,192.68	1,100.94	550.47	275.23	56.57	7.86	34.08%
Net Pay	27,687.84	2,307.32	2,129.83	1,064.92	532.46	109.44	15.21	65.92%
Employers NIC Contribution	4,314.98	359.58	331.92	165.96	82.98	17.06	2.37	10.27%
Salary Package [Cost of Employee]	47,574.98	3,964.58	3,659.61	1,829.81	914.90	188.04	26.14	113.27%

¹ Percentage expressed in relation to Gross Income [£ 39,900.00].

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2023 Salary Example for £ 42,000.00 (Planned by Boris Johnson)

£ 42,000.00 Salary Example 2023/24 Tax Year (Planned by Boris Johnson)

	Yearly	Monthly	4 Weekly	2 Weekly	Weekly	Daily	Hourly	%1
Gross Income	42,000.00	3,500.00	3,230.77	1,615.38	807.69	166.01	23.08	100.00%
Adjusted Gross Income2	39,900.00	3,325.00	3,069.23	1,534.62	767.31	157.71	21.92	95.00%
Company Pension: Employee	2,100.00	175.00	161.54	80.77	40.38	8.30	1.15	5.00%
Company Pension: Employer	1,260.00	105.00	96.92	48.46	24.23	4.98	0.69	3.00%
Taxable Pay	39,900.00	3,325.00	3,069.23	1,534.62	767.31	157.71	21.92	95.00%
Tax Due [PAYE]	7,980.00	665.00	613.85	306.92	153.46	31.54	4.38	19.00%
National Insurance	3,777.12	314.76	290.55	145.27	72.64	14.93	2.08	8.99%
Total Pay Deductions	13,857.12	1,154.76	1,065.93	532.97	266.48	54.77	7.61	32.99%
Net Pay	28,142.88	2,345.24	2,164.84	1,082.42	541.21	111.24	15.46	67.01%
Employers NIC Contribution	4,343.69	361.97	334.13	167.06	83.53	17.17	2.39	10.34%
Salary Package [Cost of Employee]	47,603.69	3,966.97	3,661.82	1,830.91	915.46	188.16	26.16	113.34%

¹ Percentage expressed in relation to Gross Income [£ 39,900.00].

2023 Salary Example for £ 42,000.00 (Suggested by iCalculator)

£ 42,000.00 Salary Example 2023/24 Tax Year (Suggested by iCalculator)

	Yearly	Monthly	4 Weekly	2 Weekly	Weekly	Daily	Hourly	%1
Gross Income	42,000.00	3,500.00	3,230.77	1,615.38	807.69	166.01	23.08	100.00%
Adjusted Gross Income2	39,900.00	3,325.00	3,069.23	1,534.62	767.31	157.71	21.92	95.00%
Company Pension: Employee	2,100.00	175.00	161.54	80.77	40.38	8.30	1.15	5.00%
Company Pension: Employer	1,260.00	105.00	96.92	48.46	24.23	4.98	0.69	3.00%
Taxable Pay	39,900.00	3,325.00	3,069.23	1,534.62	767.31	157.71	21.92	95.00%
Tax Due [PAYE]	11,960.00	996.67	920.00	460.00	230.00	47.27	6.57	28.48%
National Insurance	3,777.12	314.76	290.55	145.27	72.64	14.93	2.08	8.99%
Total Pay Deductions	17,837.12	1,486.43	1,372.09	686.04	343.02	70.50	9.80	42.47%
Net Pay	24,162.88	2,013.57	1,858.68	929.34	464.67	95.51	13.28	57.53%
Employers NIC Contribution	4,343.69	361.97	334.13	167.06	83.53	17.17	2.39	10.34%
Salary Package [Cost of Employee]	47,603.69	3,966.97	3,661.82	1,830.91	915.46	188.16	26.16	113.34%

¹ Percentage expressed in relation to Gross Income [£ 39,900.00].

Further Reading

Boris Johnsons Plan for changes to the Higher Rate Tax Threshold

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