Frequently Asked Questions

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

Since the Personal Allowance (£12,570) and Higher Rate Threshold (£50,270) are frozen while wages rise, more of your income is "dragged" into the 20% or 40% brackets. Our calculator illustrates this "stealth tax," showing how much of your raise is being eaten by such frozen thresholds.

It is known as the "60% Tax Trap."

Your Personal Allowance is tapered at the rate of £1 for every £2 earned between £100,000 and £125,140. In this band, an effective marginal tax rate of roughly 60% applies (40% income tax plus 20% from the lost allowance). By increasing pension contributions using our calculator, you can bring down your "Adjusted Net Income" to reclaim this allowance.

Scotland currently has a much more limited scheme to assist low-income residents, and it throws the middle-income band in a pretty tight squeeze.

For the fiscal year 2026/27, Scotland has increased its Starter Rate (£16,538) and Basic Rate (£29,527) thresholds by 7.4% to help low earners. Middle-income earners (£40k–£50k approximately) would face a "double squeeze": 42% Scottish Higher Rate and 8% National Insurance in the UK. We use 2026/27 Scottish tables to be very accurate in pinpointing your situation.

Salary sacrifice remains one of the most potent options to lower your tax bill.

Employer National Insurance is now 15%, but Salary Sacrifice lets deductions be taken from your gross pay before tax and employee NI are calculated. For those near the £50,270 or £100,000 thresholds, it is often the most efficient way to lower your taxable income and avoid higher tax brackets entirely.

No, bonuses will be taxed at the rate corresponding to your true annual income.

Regarding a £50,270 annual earnings threshold, a bonus above this amount would be taxed at 40%, not 20%. Use the "Bonus" field in the calculator to see the actual net bonus obtained.

Net pay must be computed per individual.

Tax codes (which might indicate medical insurance or car benefits), Student Loan schemes, and area (Scotland as opposed to England), all contribute to the differentiation. Our calculator provides individual input for the combination of items that affect your pay rather than a blanket figure.

Repayment comprises 9% of any revenue made over the annual threshold set in your plan.

Plan 1: £26,900. Plan 2: £29,385. Plan 5 (New): £25,000 — 2026 is the first year post-2023 students officially start repaying. Postgraduate: £21,000 (repaid at 6%).

These rates have increased, but the High Income charge can still take it back.

From April 2026, Child Benefit stands at £27.05 a week for the first child and £17.90 for any other children. Nonetheless, the High Income Child Benefit Charge would still be enforced if total income from the highest earner exceeds £60,000. You can use our calculator to simulate your household income and see whether you are eligible to keep the full benefit.

This is known as a "Marginal Tax Cliff."

Crossing certain thresholds—such as the £60,000 Child Benefit limit or the £100,000 allowance taper—can cause your deductions to rise faster than your gross pay. Our calculator highlights these cliffs so you can see exactly when a few extra pounds in pay actually costs you money.