Rates & sources
UK tax rates and thresholds, as published by HMRC. Scotland and Wales have devolved rates for income tax and property transactions.
Source: HMRC — Tax rates — 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 South Africa planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Annual Travel Allowance from Employer (R)
60000
Business Kilometres Driven
15000
Total Kilometres Driven
25000
Vehicle Value (incl. VAT) (R)
350000
After entering these figures, review sars approved deduction, taxable allowance and additional tax on allowance together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
SARS Approved Deduction
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.
Taxable Allowance
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Additional Tax on Allowance
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Net Benefit of Allowance
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.
Business Use
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
A travel allowance paid by an employer is a common component of South African remuneration packages, particularly for employees in sales, consulting, or any role requiring regular travel to client sites. Under SARS rules, the allowance is not automatically tax-free — only the portion that corresponds to proven business travel at the approved rate escapes income tax. For 2024/25, the approved rate is R4.64 per kilometre for the first 17,000 business kilometres and R2.79 per kilometre thereafter. The key requirement is a SARS-compliant travel logbook recording every business trip. Without this logbook, SARS automatically treats 80% of the gross allowance as taxable income, which can create a significant and avoidable tax liability for employees who do substantial business mileage.
This calculator uses the logbook method: it multiplies your business kilometres by the 2024/25 approved rates to determine the SARS-approved deduction, then subtracts that from your gross allowance to find the taxable portion. The taxable allowance is added to your other income, and the incremental income tax is computed using the 2024/25 brackets. The net benefit of the allowance is what remains after SARS has taken its share. Employees considering whether to negotiate a travel allowance versus a company car should compare this net benefit against the fringe benefit tax that applies to a company vehicle. SARS also allows an actual-cost method for those with detailed vehicle expense records, which may produce a more favourable result if running costs are high. Consult a registered tax practitioner before choosing your method.
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
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End-of-article next steps
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