Deductions Formula:
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Definition: This calculator estimates the total deductions from a UK salary including Income Tax, National Insurance, and other deductions.
Purpose: It helps employees and employers understand the total deductions that will be taken from gross salary in the UK.
The calculator uses the formula:
Where:
Explanation: Simply adds up all deduction components to show the total amount that will be deducted from gross pay.
Details: Understanding deductions helps with financial planning, budgeting, and ensuring correct tax payments.
Tips: Enter the tax amount, National Insurance contribution, and any other deductions. All values must be ≥ 0.
Q1: How do I find my tax amount?
A: Use HMRC's tax calculator or check your tax code and salary against UK tax bands.
Q2: What's included in "Other deductions"?
A: Pension contributions, student loan repayments, workplace benefits, or any other salary deductions.
Q3: Is National Insurance the same as income tax?
A: No, NI is a separate contribution that funds state benefits and the NHS.
Q4: Are these deductions taken before or after pension?
A: It depends on your pension scheme - some are deducted before tax (relief at source), others after.
Q5: How often are these deductions taken?
A: Typically monthly for employees, but can vary depending on your pay schedule.