Frequently Asked Questions

A 5% pay rise in 2026 may not feel like 5% in your pocket.

The Personal Allowance (£12,570) and Higher Rate Threshold (£50,270) are frozen while wages rise. This means more of your income gets taxed at 20% or 40%. Our calculator shows you how much of your raise goes to tax instead of your bank account.

This is the "60% Tax Trap."

Between £100,000 and £125,140, you lose £1 of Personal Allowance for every £2 earned. That means an effective tax rate of 60% in this band (40% income tax plus 20% from the lost allowance). Increasing pension contributions brings down your "Adjusted Net Income" and recovers this allowance.

Scotland has different tax bands, especially affecting middle-income earners.

In 2026/27, Scotland raised its Starter Rate (£16,538) and Basic Rate (£29,527) thresholds by 7.4% to help lower earners. But middle-income earners (£40k–£50k) face 42% Scottish Higher Rate plus 8% National Insurance. Our calculator uses 2026/27 Scottish rates for accuracy.

Yes. Salary Sacrifice remains one of the best ways to lower your tax bill.

Employer National Insurance is now 15%, but Salary Sacrifice deductions come from gross pay before tax and employee NI. If you're near the £50,270 or £100,000 thresholds, this is often the most efficient way to stay below a higher tax bracket.

No, bonuses are taxed at your highest tax bracket.

If you earn £50,270 and get a bonus above that, the bonus is taxed at 40%, not 20%. Use the "Bonus" field in the calculator to see your actual net bonus.

Several factors affect net pay individually.

Tax codes (which might cover medical insurance or car benefits), Student Loan schemes, and location (Scotland vs England) all change your tax. Our calculator lets you input these factors rather than giving you a generic figure.

You repay 9% of earnings above the threshold for your plan.

Plan 1: £26,900. Plan 2: £29,385. Plan 5 (New): £25,000. 2026 is the first year post-2023 students repay under these terms. Postgraduate: £21,000 (at 6%).

Rates have gone up, but high earners may still lose it.

From April 2026, Child Benefit is £27.05 a week for the first child and £17.90 for other children. The High Income Child Benefit Charge still applies if the highest earner makes over £60,000. Use our calculator to see if you keep the full benefit.

This is a "Marginal Tax Cliff."

Crossing certain thresholds—like £60,000 for Child Benefit or £100,000 for allowance taper—can make your deductions rise faster than your pay. Our calculator highlights these so you can see when an extra few pounds actually costs you money.