If you have been working at the same job for any length of time, you probably wouldn’t have much need for an Income Tax Calculator unless your circumstances have changed such as a reduction in hours or perhaps you have recently been married. Most often consumers who are in the process of changing jobs have the greatest need for a UK Income Tax Calculator to get a rough idea of what their take home pay will be. Whether you are contemplating changing jobs or have been offered a new one, an online Income Tax Calculator can help you determine what you will actually be netting.
Unless you have ever used one, you may very well be asking, “What exactly is an Income Tax Calculator?” Although you can purchase Income Tax Calculators at most computer software stores, you can find a number of them online which are free to use. They are simply software programmes that are user friendly and if you know your gross wages and whether or not you are paying into the National Insurance, you can quickly calculate how much you will be paying in taxes and what your take home pay will be. With an HMRC Income Tax Calculator you can figure out to the pound how much you will owe the taxman.
When you sit down at your computer to use an online Income Tax and National Insurance Calculator, of course you should know how much the job pays. Some calculators ask for more information than others but a basic version will ask whether or not you are paying into the S2P (State Second Pension) or if you are paying on an occupational pension scheme. Some calculators ask if you are married, blind or paying into the NI whilst others also ask your age and tax code. You may be asked the percentage of your wage you pay into a pension or how much you receive per month in childcare vouchers. Each Income Tax and IN Calculator is a bit different, but the more information they ask for, the more precise your results will be.
As an example of the results a basic Income Tax Calculator after tax will provide, consider a person offered a salary of £35,000 and who is not paying S2P because he/she is paying into an occupational pension scheme. This is all the information this particular calculator asks for. The results would look like this:
Total Annual Deductions £8,393
Annual Earnings (after NI and tax) £26,607
Monthly Income After Tax (after NI and tax) £2,217
Weekly Income After Tax (after NI and tax) £511
You can see that you are not given weekly or monthly tax deductions but that is a simple matter of dividing the annual total by the number of weeks you will be paid per year. This basic Income Tax Calculator also doesn’t take into account the Child Tax Credit, any employer benefits in kind or investment income either. As well, this particular calculator is based on the current year’s taxable bands and Income Tax allowances.
Again, keep in mind that the more information an Income Tax Calculator asks for, the more precise the results will be. However, if you are contemplating a new job, you can use this as a general guide as to how much you will be paying the taxman and how much you will be putting in your own pocket. It may be called an Income Tax Calculator but what you really want to know is how much money you will be bringing home and that’s a very logical question. With an Income Tax Calculator you have your answer.