None
Plan 1 (Threshold £24,990)
Plan 2 (Threshold £27,295)
Plan 4 (Threshold £31,395)
Plan 5 (Threshold £25,000)
Postgraduate (Threshold £21,000)
Standard (Category A)
Married Women (Category B)
Over State Pension Age (Category C)
Results Breakdown
Net Hourly Rate
£0.00
Weekly Take-Home
£0.00
Monthly Take-Home
£0.00
Annual Take-Home
£0.00
Estimated Income Tax (Annual)
-£0.00
National Insurance (Annual)
-£0.00
Pension (Annual)
-£0.00
function calculatePAYE() {
var hourlyRate = parseFloat(document.getElementById('hourlyRate').value) || 0;
var hoursPerWeek = parseFloat(document.getElementById('hoursPerWeek').value) || 0;
var pensionRate = parseFloat(document.getElementById('pensionRate').value) || 0;
var studentLoanType = document.getElementById('studentLoan').value;
var niCategory = document.getElementById('niCategory').value;
// Basic Annual Logic
var annualGross = hourlyRate * hoursPerWeek * 52.143; // Avg weeks per year
// 1. Pension
var annualPension = annualGross * (pensionRate / 100);
var taxableGross = annualGross – annualPension;
// 2. Personal Allowance (2024/25 UK Standard)
var personalAllowance = 12570;
// Tapering over 100k
if (annualGross > 100000) {
var reduction = (annualGross – 100000) / 2;
personalAllowance = Math.max(0, 12570 – reduction);
}
// 3. Income Tax Calculations (England/NI/Wales 2024/25)
var taxableIncome = Math.max(0, taxableGross – personalAllowance);
var tax = 0;
if (taxableIncome > 0) {
if (taxableIncome <= 37700) {
tax = taxableIncome * 0.20;
} else if (taxableIncome niThreshold) {
if (annualGross niThreshold) {
ni = (annualGross – niThreshold) * 0.0585; // Reduced rate
}
} else if (niCategory === 'C') {
ni = 0; // Over state pension age = no NI
}
// 5. Student Loan
var studentLoanDed = 0;
var slThreshold = 0;
var slRate = 0.09;
if (studentLoanType === 'plan1') slThreshold = 24990;
if (studentLoanType === 'plan2') slThreshold = 27295;
if (studentLoanType === 'plan4') slThreshold = 31395;
if (studentLoanType === 'plan5') slThreshold = 25000;
if (studentLoanType === 'postgrad') { slThreshold = 21000; slRate = 0.06; }
if (studentLoanType !== 'none' && annualGross > slThreshold) {
studentLoanDed = (annualGross – slThreshold) * slRate;
}
// Totals
var totalDeductions = tax + ni + annualPension + studentLoanDed;
var annualNet = annualGross – totalDeductions;
var monthlyNet = annualNet / 12;
var weeklyNet = annualNet / 52.143;
var netHourly = weeklyNet / hoursPerWeek;
// Update UI
document.getElementById('resNetHourly').innerText = '£' + netHourly.toFixed(2);
document.getElementById('resWeeklyNet').innerText = '£' + weeklyNet.toFixed(2);
document.getElementById('resMonthlyNet').innerText = '£' + monthlyNet.toFixed(2);
document.getElementById('resAnnualNet').innerText = '£' + annualNet.toLocaleString('en-GB', {maximumFractionDigits:2});
document.getElementById('resAnnualTax').innerText = '-£' + tax.toLocaleString('en-GB', {maximumFractionDigits:2});
document.getElementById('resAnnualNI').innerText = '-£' + ni.toLocaleString('en-GB', {maximumFractionDigits:2});
document.getElementById('resAnnualPension').innerText = '-£' + annualPension.toLocaleString('en-GB', {maximumFractionDigits:2});
document.getElementById('results-area').style.display = 'block';
}
Understanding Your PAYE Hourly Rate
A PAYE (Pay As You Earn) hourly rate represents the amount you are paid for every hour worked before tax and other deductions are taken by HMRC. For most employees in the UK, the "sticker price" of their wage is the Gross rate, but what actually lands in your bank account is the Net rate.
Key Deductions Explained
Income Tax: Usually calculated using the 1257L tax code, which means the first £12,570 of your annual income is tax-free. Earnings above this are taxed at 20%, 40%, or 45% depending on your bracket.
National Insurance (NI): Contributions that qualify you for certain benefits and the State Pension. As of 2024, the primary rate for most employees is 8% on earnings between the threshold and the upper limit.
Workplace Pension: Under auto-enrolment, most employees contribute a percentage of their pay (often 5%) into a pension scheme, which is deducted before income tax is calculated.
Student Loans: If you have a student loan, deductions are taken at 9% (or 6% for postgraduate) of your income above a specific threshold.
Example Calculation
If you earn £20.00 per hour and work 37.5 hours per week:
Gross Weekly Pay: £20.00 x 37.5 = £750.00
Gross Annual Pay: £750.00 x 52.14 = £39,105.00
Deductions: After removing standard Income Tax, National Insurance, and a 5% pension contribution, your take-home pay might be roughly £15.20 per hour.
Note: This calculator uses 2024/2025 UK tax year rates for England, Wales, and Northern Ireland. Scottish tax bands may vary slightly. Figures are estimates for informational purposes only.