If you are working and receive a salary from your employer, it is important to have an idea on the tax deductions to your salary in order to ascertain your take home pay. You can be guided by an online free tax calculator found on the government tax authority website or financial institutions.
Where you can find the calculator
Tax calculators are found on the website of the government tax institution, websites of tax consulting companies as well as financial institutions. This earnings calculator is for free and has an unlimited access. You can also get the salary tax calculator by physically visit the above-mentioned institutions.
Why using the salary tax calculator
To determine your net salary The tax calculator helps to determine your take home income after deduction of the relevant tax. It calculates what your net salary is after tax and it shows your gross salary, taxable income, non-taxable amount and benefits, net tax salary as well as the total tax estimate deducted. To know tax deductions The calculator shows the types and categories of taxes that are deducted from your salary such as pay as you earn and the tax codes applicable on each tax deduction. Moreover, it shows the normal monthly tax on your salary and UK taxes charged on overtime payout. For personal budgeting It is important to know your take home salary for personal financial budgeting and planning purposes. In simple terms, the amount written on your employment contract is not the actual amount that you will get per month if you are eligible to pay tax. Thus, the net amount is what you worth. Salary tax exemption applies when your salary is within the non-taxable income or other reasons, otherwise you are required to pay income taxes. When comparing job offers The tax calculator helps you to ascertain your future take home salary when comparing different UK salaries. In fact, tax is applied as a percentage to your gross salary and it varies with the government tax bands, thus highly paid employees pay a relatively high tax. If you use this calculator, you will be able to decide which job to take or to move from your current job to a well-paying company.