Moonworkers
2026-27 · HMRC exact percentage method

UK Payroll Calculator

PAYE, NI, student loans and pension for England, Scotland, Wales and Northern Ireland. Supports salary and hourly workers, additions, deductions and YTD cumulative PAYE.

£ per month

£

e.g. 1257L, S1257L, BR, D0

S = Scotland · C = Wales · W1/M1 = non-cumulative

Enter a salary or hourly rate above

About this calculator

This calculator gives you a close estimate of your UK payroll deductions for 2026-27, using HMRC's exact percentage method with periodised thresholds. It handles the three tax territories, K codes with the 50% regulatory limit and its carry-forward, weeks 53, 54 and 56, the cumulative and W1/M1/X bases, student and postgraduate loans, and pension contributions on qualifying earnings. It still won't match your payslip to the penny in every case: it does not cover in-year tax code changes, payrolled benefits in kind, NI deferral across more than one employment, directors on the annual earnings period, or employer-level annual adjustments such as the Employment Allowance and the apprenticeship levy. Powered by the same engine as the Moonworkers Payroll API.

Run real payroll

Frequently asked questions

Why might the result differ from my payslip?

This calculator uses your current gross pay and tax code to produce an estimate. K-code carry-forwards and weeks 53, 54 and 56 are handled, and the Year-to-date section reproduces a specific period exactly. What your employer may apply that this does not: a mid-year tax code change, benefits in kind processed through payroll, or NI deferral across more than one employment. For most employees on a standard tax code the difference is negligible.

What tax code should I enter?

Use the tax code shown on your most recent payslip or the PAYE Coding Notice (P2) from HMRC. If you're not sure, 1257L is the standard code for most employees resident in England, Wales, or Northern Ireland. Use S1257L for Scotland or C1257L for Wales if you pay Scottish or Welsh income tax.

Which NI category applies to me?

Most employees use Category A. Use M if you are under 21, H if you are an apprentice under 25, or C if you are over State Pension age. Your employer is responsible for assigning the correct category — if in doubt, check your payslip.

Which student loan plan am I on?

Your plan depends on when and where you studied. Plan 1 covers students who started before September 2012. Plan 2 is for English and Welsh students who started from September 2012 to July 2023. Plan 5 applies to English students who started from August 2023. Plan 4 covers Scottish students. You can check your plan at gov.uk or on your payslip.

What is the YTD cumulative PAYE mode?

HMRC's standard method calculates income tax on your total earnings to date each period, then subtracts tax already paid. If you're mid-year and want to see exactly what tax should be deducted in a specific period, expand the Year-to-date section and enter your running totals from previous periods only.

Help & Guidance

Frequently asked questions

Everything you need to know about UK payroll calculations, tax codes, and take-home pay for 2026-27.

How does this UK salary calculator work?
Enter your gross salary or hourly rate, choose your pay period (daily, weekly, four-weekly, monthly, etc.) and tax code, then click Calculate. The calculator uses the HMRC exact percentage method for PAYE income tax and the Class 1 National Insurance rates, then applies any student loan or pension deductions you specify. You get your precise take-home pay and total employer cost for the 2026-27 tax year.
What taxes and deductions are included?
The calculator covers: PAYE income tax (HMRC exact percentage method), employee and employer Class 1 National Insurance, student loan repayments (Plans 1, 2, and 4), postgraduate loan deductions at 6%, and workplace pension contributions under net pay arrangement, relief at source, or salary sacrifice. The employer card also shows employer NI and total labour cost.
What is the difference between gross pay and net (take-home) pay?
Gross pay is your salary before anything is deducted. Net pay — your take-home — is what lands in your bank account after income tax (PAYE), National Insurance, any student loan repayments, and pension contributions are removed. For most UK employees earning between £25,000 and £50,000, deductions typically account for 25-35% of gross pay.
What is the Personal Allowance for 2026-27?
The standard Personal Allowance is £12,570, represented by tax code 1257L. You pay no income tax on the first £12,570 of earnings. The allowance tapers by £1 for every £2 earned above £100,000, and is fully withdrawn at £125,140.
What are the UK income tax rates for 2026-27?
England and Northern Ireland: 20% basic rate (£12,571-£50,270), 40% higher rate (£50,271-£125,140), 45% additional rate above £125,140. Scotland has six bands from 19% (starter) to 48% (top). Wales uses the same rates as England. Use a tax code prefix S for Scotland or C for Wales.
How is National Insurance calculated?
Employee Class 1 NI is 8% on earnings between £12,570 and £50,270 per year, and 2% above £50,270. Employer Class 1 NI is 15% on earnings above the Secondary Threshold (£5,000/year for 2026-27). Reduced employer rates apply to categories M (under 21), H (apprentice under 25), and V (veterans) up to £50,270.
Does the calculator cover Scotland and Wales?
Yes — all four UK territories are supported. For Scotland, prefix your tax code with S (e.g. S1257L) to apply Scottish income tax rates, which have six bands from 19% to 48%. For Wales, use C (e.g. C1257L). National Insurance is UK-wide and is the same in all territories.
How do pension contributions affect my take-home pay?
Under a net pay arrangement (most workplace schemes), pension contributions are deducted from gross pay before PAYE is calculated, reducing your tax bill. Salary sacrifice also reduces your NI. Relief at source takes contributions from net pay and the provider claims 20% back from HMRC. Auto-enrolment qualifying earnings run from £6,240 to £50,270 for 2026-27.
Can I calculate payroll for hourly workers?
Yes. Switch to hourly mode and enter the hourly rate, actual hours worked this period, and standard weekly hours (used to annualise the salary for tax and NI purposes). The calculator then computes the exact deductions for the hours actually worked.
What is the employer NI rate and the Employment Allowance?
Employer NI is 15% on earnings above £5,000/year (£416.67/month) for 2026-27. Eligible employers can offset up to £10,500 per year via the Employment Allowance, which reduces the employer NI bill to zero for most small businesses. The calculator shows the gross employer NI before this allowance.

Ready to run real payroll for your team?

Try Moonworkers Payroll