UK Tax Calculator

Understanding Your UK Tax Calculation

This calculator provides a comprehensive view of your take-home pay for the 2026/2027 UK Tax Year. It supports all UK tax bands, various pension schemes, student loans, and the High Income Child Benefit Charge (HICBC).

Pension Schemes Explained

• Salary Sacrifice: Your contribution is deducted before Tax and National Insurance, saving you the most money.
• Net Pay Arrangement: Your contribution is deducted before Tax, but you still pay National Insurance on it.
• Relief at Source: Your contribution is taken after tax. Your pension provider claims basic rate tax back. If you are a higher rate taxpayer, you must claim the extra relief via a self-assessment.

Student Loans

Student loans are calculated as a percentage of your earnings above a specific threshold. For 2026/2027, the thresholds vary by plan. The deductions are 9% for undergraduate plans (1, 2, 4, 5) and 6% for postgraduate loans.

High Income Child Benefit Charge (HICBC)

If you or your partner have an 'adjusted net income' over £60,000 and claim Child Benefit, you may have to pay the HICBC. The charge is equal to 1% of your family's Child Benefit for every £200 of income over £60,000, tapering completely away at £80,000.

EV Salary Sacrifice — Could You Save on a New Electric Car?

This calculator can help you forecast the real cost of leasing an electric vehicle (EV) through your employer's salary sacrifice scheme. Instead of paying for a car lease out of your take-home pay, your employer deducts the monthly lease cost directly from your gross salary — before Income Tax and National Insurance are calculated. This means you effectively pay for the car with pre-tax income, which can result in significant savings.

To model this, enter the monthly lease amount in the EV Sacrifice (£/mo) field and the vehicle's list price (P11D value) in the EV P11D Value field. The calculator will automatically deduct the sacrifice from your taxable pay and add back the Benefit in Kind (BiK) charge — currently just 4% of the P11D value for fully electric vehicles in 2026/27 — so you see a true net picture.

• P11D Value: The manufacturer's list price of the vehicle including options and VAT, used by HMRC to calculate the taxable benefit.
• Benefit in Kind (BiK): A small taxable benefit added back to your income because you have personal use of a company vehicle. At just 4% for EVs, this is far lower than petrol or diesel alternatives (up to 37%).
• Why EVs? The ultra-low BiK rate, combined with the pre-tax salary sacrifice deduction, makes electric vehicles exceptionally cost-effective through a company scheme — often cheaper than privately financing the same car after tax.
• Higher-rate taxpayers benefit most: The more tax you pay, the larger your saving, since the sacrifice reduces income that would have been taxed at 40% or more.

The EV Sacrifice field reduces your take-home pay, but also reduces your tax and NI bill — use the calculator to find the optimal sacrifice amount for your situation. Always confirm the specific terms with your employer, as scheme rules and eligible vehicles vary.