Money Saving Expert Tax Calculator 2024

UK Tax Formula 2024:

\[ Tax = 0.20 \times \min(\max(income - 12570, 0), 37700) + 0.40 \times \min(\max(income - 50270, 0), 74870) + 0.45 \times \max(income - 125140, 0) \]

Tax Amount:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the UK Tax Calculator?

The UK Tax Calculator estimates the income tax amount for the 2024 tax year based on the current UK tax bands and rates. It helps individuals understand their tax liability for financial planning.

2. How Does the Calculator Work?

The calculator uses the UK tax formula for 2024:

\[ Tax = 0.20 \times \min(\max(income - 12570, 0), 37700) + 0.40 \times \min(\max(income - 50270, 0), 74870) + 0.45 \times \max(income - 125140, 0) \]

Where:

\( income \) — Gross annual income (GBP)
0.20 — Basic tax rate (20%)
0.40 — Higher tax rate (40%)
0.45 — Additional tax rate (45%)
12570 — Personal allowance threshold
37700 — Basic rate band limit
50270 — Higher rate threshold
125140 — Additional rate threshold

Explanation: The formula calculates tax by applying different rates to income within specific bands, starting after the personal allowance.

3. Importance of Tax Calculation

Details: Accurate tax estimation is crucial for financial planning, budgeting, and ensuring compliance with HMRC requirements. It helps individuals understand their take-home pay and plan for tax payments.

4. Using the Calculator

Tips: Enter your gross annual income in GBP. The calculator will compute your estimated tax liability for the 2024 tax year based on current rates and thresholds.

5. Frequently Asked Questions (FAQ)

Q1: What is the personal allowance for 2024?
A: The personal allowance for 2024 is £12,570, which is the amount you can earn before paying income tax.

Q2: What are the tax bands for 2024?
A: Basic rate: 20% on income between £12,571-£50,270; Higher rate: 40% on income between £50,271-£125,140; Additional rate: 45% on income over £125,140.

Q3: Does this calculator include National Insurance?
A: No, this calculator only estimates income tax. National Insurance contributions are calculated separately.

Q4: Are there any deductions not included?
A: This calculator doesn't account for tax reliefs, allowances, or deductions such as pension contributions or charitable donations.

Q5: Is this calculator applicable to Scotland?
A: No, Scotland has different income tax rates and bands. This calculator uses rates applicable to England, Wales, and Northern Ireland.