Question 1

What is the Personal Allowance for 2025 to 2026?

Accepted Answer

The standard Personal Allowance is £12,570 for 2025 to 2026. It is the amount of income you can earn before paying Income Tax. Your allowance can be different if your tax code changes. High earners may see a reduced allowance.

Question 2

What are the UK Income Tax bands for 2025 to 2026?

Accepted Answer

For England, Wales and Northern Ireland: 0% on the Personal Allowance up to £12,570, 20% basic rate on £12,571 to £50,270, 40% higher rate on £50,271 to £125,140, and 45% additional rate above £125,140.

Question 3

How does National Insurance work in 2025 to 2026?

Accepted Answer

Employee Class 1 NI is 0% up to £12,570, 8% between £12,570 and £50,270, and 2% above £50,270. NI is charged on earnings rather than total annual income and is calculated per pay period in payroll.

Question 4

Do pension contributions reduce my tax?

Accepted Answer

Yes. Many workplace schemes reduce the income used for Income Tax. In this calculator, your pension contribution is taken as a percentage of gross pay and reduces taxable pay for Income Tax. In this simplified model it does not reduce income for employee NI. Scheme rules can differ.

Question 5

How are student loan repayments calculated?

Accepted Answer

Repayments are a percentage of income above the threshold for your plan. For 2025 to 2026 the thresholds are: Plan 1 £26,065 at 9%, Plan 2 £28,470 at 9%, Plan 4 £32,745 at 9%, Plan 5 £25,000 at 9%, and Postgraduate (PGL) £21,000 at 6%.

Question 6

Does the calculator include employer contributions?

Accepted Answer

No. Employer National Insurance and employer pension contributions are not part of your personal take-home pay and are not shown.

Question 7

Are Scottish Income Tax bands different?

Accepted Answer

Yes. Scotland sets different bands and rates for non-savings, non-dividend income. Use the Scottish Take-Home Pay Calculator to model Scottish rates.

Question 8

When will the calculator be updated?

Accepted Answer

UKTaxes.co.uk updates each tax year with the latest HMRC thresholds for Income Tax, National Insurance and student loans.

Scottish Calculator