This tax calculator provides a forecast salary and employers national insurance contributions calculation for the 2016/17 tax year, you may also want to try our 2017/18 PAYE Salary Calculator which has been updated to allow calculation of income tax and National Insurance for 2017/18 tax year.
The 2016/17 tax calculator includes the tax figures and personal allowances for 2016/17 as outline by George Osborne in his Summer Budget 2015 Speech on the 7th July 2015 - view a full transcript of the speech here, key extracts are shown below the calculator.
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The 2016/17 Tax Calculator was published on the 10th July 2015 with tax variables based on George Osborne's Summer Budget 2015 speech on the 7th July 2015. The 2016/17 Tax Calculator is provided to allow iCalculator users to estimate their 2016/17 tax year tax commitments (PAYE, NI, etc.) and Employers to estimate Employers National Insurance Contributions.
The key tax factors included relate to the following extract from George Osborne's Statement:
The best way to support working people is to let them keep more of the money they earn.
We promised the British people at the election that we would introduce a tax lock to prohibit any increase in the main rates of income tax, national insurance and VAT for the next five years.
We will not only keep that promise, but legislate for it in the coming weeks.
Our priority is not to raise taxes on working people, it is to cut their taxes.
In the last Parliament, we raised the tax-free personal allowance from the £6,500 to £10,600, taking almost four million of the lowest paid out of tax altogether.
When we went to the British people this May, we said we would go much further.
Our two commitments were these:
That we would raise the tax free personal allowance to £12,500 - so no one working 30 hours a week on the national minimum wage pays tax.
And that we would raise the threshold at which people pay the higher 40p rate of tax to £50,000.
These were our priorities at the election - they are the priorities in this Budget.
For we on this side deliver what we promise. So the rates of income tax in this Budget remain unchanged - but the thresholds do not.
Today I am taking the first major step to delivering our promise.
I am raising the tax-free personal allowance to £11,000 next year.
That's £11,000 you can earn before paying any income tax at all - boosting wages by over £900 in total - and a down payment on our goal of reaching £12,500.
We will now legislate so that after that the personal allowance always rises in line with the minimum wage, and we never ask the lowest paid in our society to pay income tax.
The higher rate threshold currently stands at £42,385.
I am today raising it to £43,000 from next year.
It marks a strong start to our commitment to raise the threshold to £50,000.
And it will lift 130,000 people out of the higher rate of income tax altogether.
A personal allowance of £11,000.
A higher rate threshold of £43,000.
29 million people paying less tax.
A downpayment for a country on the up.
A good budget and promise for people who choose to work, let's hope that Mr Osborne delivers on his aspirations for working families paying less tax.
The Tax Calculators on iCalculator are updated for the 2023/24 tax year. You can calculate your take home pay based of your gross income, PAYE, NI and tax for 2023/24. Use the simple tax calculator or switch to the advanced tax calculator to review employers national insurance payments, income tax deductions and PAYE tax commitments for 2024.
PAYE and Tax calculations can seem complex, the following are taken into consideration when calculating your salary and take home pay:
Gross Salary | Tax Free Allowance | Taxable Pay | Tax Due | Your National Insurance | Employer National Insurance | Your Pension Contributions | HMRC Pension Contributions | Net Pay
Top Tip: Did you know you can legally reduce your National Insurance bill and increase your take home pay? Read more about Salary Sacrifice
Each calculator provides the same salary analysis but is tailored to allow you to enter your salary based on how you are used to being paid (hourly, daily etc.) and/or specific tax scenarios such as being a landlord or a company director with combined PAYE and Dividend income. Each pay calculator includes personal tax allowances, calculates your National Insurance Contributions and your Employers National Insurance Contributions, deductions PAYE etc. and provides a breakdown of your annual salary with Monthly, Quarterly Weekly, Daily and Hourly pay illustrations.