Rates & sources
UK PAYE tax + NI thresholds (2025/26 HMRC). Employers deduct both at source from gross pay.
Source: HMRC — PAYE — figures refreshed at the start of each tax year.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic New Zealand planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Hourly Rate (£)
5%
Normal Hours Worked
40 hours
Overtime Hours
40 hours
Overtime Multiplier (e.g. 1.5)
1.5
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption to understand the realistic range of outcomes rather than relying on a single estimate.
How to read your results
Result
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator works out gross overtime pay and the estimated take-home amount after income tax and National Insurance deductions. Enter your regular annual salary, your overtime hours, and whether your employer pays a premium rate such as time-and-a-half or double time. The calculator applies your marginal tax rate, meaning it correctly taxes overtime at the rate applicable to those additional earnings rather than a flat average rate.
Results assume a standard tax code and that your regular salary is paid in the same pay period. Student loan deductions, pension contributions, and salary sacrifice arrangements are not included. Scottish taxpayers should note that income tax rates differ from the rest of the UK. Always treat the output as an estimate rather than a precise payslip figure.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
Use arrow keys to navigate items, Enter or Space to expand/collapse.
End-of-article next steps
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